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Is there any room for negotiating with an new inventory home?
I know most new home builders pay some or most of the closing costs, but how about the 'offer' on a new home?
Just depends on your local market. Some will offer a "buyer incentive" which is basically a price reduction. Usually it's a figure that's been decided on by the builder. You may want to go to the new home development with your own realtor. (Won't cost you anything, and they may have the inside track on getting you the best deal.) At the very least, bring up the price issue. See what you can get in the way of a discount/incentive or whatever the builder is wanting to call it. If you don't ask, chances are they're not going to offer it.
Also, ask about "spec" homes for sale or homes that have come back into inventory. These mostly completed homes are the ones you'll get the best deals on as compared to picking your lot, your elevation, all your colors, etc. Most builders want to move the completed homes first and they're usually willing to offer deep discounts to get them moved quickly.
In my experience, most builders won't negotiate off their list price on new construction, but you can ask them to include other items (gutters, AC, landscape allowance) or ask them to pay some of your closing costs. Reputable builders don't want to set a precedent of having their inventory sell for less than what it's listed for because usually they set the list price based on the costs they already have invested into the house plus their desired profit margin. It's easier for them to pay for "extras" at their own expense and offer these to a buyer as an incentive. If the builder works on a smaller scale and maybe has a spec house that's been sitting on the market for a while, you might be able to do some negotiating on the price. It's all about supply & demand - if there's not enough buyers, builders will have to concede on something whether it's price or "extras" so they're not stuck with a ton of construction loan interest.
It doesn't hurt to ask for a price reduction. A builder may have cash flow requirements that need to be met, and a sale in hand at a lower than desired profit margin now beats no sale at all.
Do everything you can to make it easy for the builder to accept less money ... accept standard paint schemes, a lower level of finish, whatever to help them justify taking a lower price point. Maybe they have a lot that's not as desirable as some others, and it will be a harder to move item from their inventory ... help them out by taking that lot.
Otherwise, ask for as many concessions of value to you that you can possible get from the builder. Landscaping, finish, trim, upgrade windows, financing assistance, closing costs assistance, etc.
Is there any room for negotiating with an new inventory home?
I know most new home builders pay some or most of the closing costs, but how about the 'offer' on a new home?
There certainly is in my area. And in any area I would go in with an offer...the worst that can happen is they say no. If they won't budge on the price, then ask for 'extras' or that they pay something that normally wouldn't be paid by them. Again, it doesn't hurt to ask. Inventory homes are just that...inventory sitting there costs money.
There certainly is in my area. And in any area I would go in with an offer...the worst that can happen is they say no.
It has been my experience that the "worst" that can happen when you make an offer - is that it is accepted and you have to pay for it for 30 years.
If one of my clients like a house a new build in inventory, we leave. I don't care if we park the car two blocks away or we go look at another builder's community. Once you have left, the sales counselor looses control of you - you are gone. So I call them on the phone, and we begin the real estate negotiations game.
I believe since I am the buyer's agent and not the buyer, I can "fish" for information and negotiate more for my client because the sales counselor; 1. trusts Realtors to be working with buyers that will close. and 2. Understands that if they work well with me I will bring other buyers. That and I have more skills in negotiation than they typically do.
If they substantially meet the needs of the buyer and we can come to agreement - we come back to sign the builders contract. If not, we find another builder to play with.
Is there any room for negotiating with an new inventory home?
I know most new home builders pay some or most of the closing costs, but how about the 'offer' on a new home?
You won't know unless you try. Builders in my area are negotiating.
Is there any room for negotiating with an new inventory home?
I know most new home builders pay some or most of the closing costs, but how about the 'offer' on a new home?
There is absolutely room for negotiating on an inventory home in this area. What I usually do is call the builder before I bring my clients in to find out what the price is. Then I ask about incentives. Then I talk about how motivated my clients are, and that they are deciding between various new construction communities and resales. Then I ask them again what they can do on the price. Then I tell my clients
Who should do the negotiating? The Buyer or the Realtor?
Also...I have a spec home and I want to negotiate the price.
My folks...who have bought and sold plenty homes...and quite hagglers... want me to start by asking for $60,000 less the asking price of the builder? Is this reasonable? How can this be achieve and still let the builder know I am serious.
It absolutely depends on your area, the builder and the specific subdivision and property. You have to do your homework if you want to be successful.
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