Home Buying in 91702>Question Details

Tina, Home Buyer in 91702

Are prices of new build condos negotiable? thanks!!!

Asked by Tina, 91702 Mon Jan 10, 2011

Hi there,
I saw a new build condo in City of Azusa in Los Angeles. My agent is very inexperienced, it’s been 4 weeks since we saw the property, he has yet managed to work out pricing! So here I am looking for help on my own. According to my agent, the builder’s asking for 320K for the last unit of the 2 bedroom condo they have left. I’d like to find out what’s a realistic price I can possibly get it at. I’ve heard mixed opinions from people (some say go in low at 275K, while others say there’s no way the builder will sell it below 300K). Anyone who can tell me based on your expertise and experience what is a realistic price?
all suggestions are apprieciated!

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15
Tina: Probably a good choice....Good Luck To Your Future Home Buying Efforts!
0 votes Thank Flag Link Mon Jan 10, 2011
Hi everyone,
Thanks for your help. I've decided to drop this condo after discovering some serious issues with the property location... prbly will also drop my agent.
have a good day.
0 votes Thank Flag Link Mon Jan 10, 2011
As I said below. Have your agent write it up. I think it is a good offer, but it isn't what any of us thinks - it is what the builder thinks.
0 votes Thank Flag Link Mon Jan 10, 2011
Hi everyone here,
Thanks for your quick replies below. very helpful and encouraging! I just 'bullied' my agent to pull the sales records (he only got a small part of oit), and it looks like 2 similar units sold for 300K and one for 305K. Given that the unit i'm looking to buy is the last one left and i get the feeling it's a 'left over' after other buyers have picked better units, i'm thinking getting it at 290K is doable? your thoughts??

thanks also for reminding me to ask the builder to cover closing costs and ask for upgrades.. will have to remind my agent of that as well (i did think of switching agents but decided to give him one last chance).
0 votes Thank Flag Link Mon Jan 10, 2011
Actually I can tell you. I worked with many builders in the past when I was a builder agent. You need to have your realtor write up and offer for the unit you are interested in with the price you want to pay. Be reasonable. If they are selling for $320 and your offer is $105 nothing much is going to happen. So make your offer reasonable. Once the offer is presented to the builder, they usually will counter. Once they counter, then you have the price that the builder will take. This is the only way to do it. Verbal "will you take this" to a builder will never work. Have your agent present the offer in writing.
0 votes Thank Flag Link Mon Jan 10, 2011
Tina: If that agent registered you then the builder will want you to work with that agent.
What you can do on your own is the following:

Find out what title company they use and get all of the sold comparables. Just call the sales office, the title information regarding sold unites in that complex, and in that area is public information.

Keep in mind that each unit may have different upgrades which sometimes the builder's throw in and you will need to examine what is being included in your unit to price it higher or lower than the other sold comparables.

Also: find out if there are any other comparable developments in the area and what they are selling for.

I am assuming that you didn't already leave a deposit or they would have had you sign the builder's purchase agreement shortly after that. Find out where you stand with the sales office after you have examined the recent sold comparables.

If it is for some reason "Standing Inventory", that does not have any offers then you can negotiate more upgrades for a lower purchase price.

Without knowing all of the particulars it's hard to advise you.

I wish you luck!
~~~
0 votes Thank Flag Link Mon Jan 10, 2011
Builders are looking at their numbers. They usually have loans that they need to pay off so there could be a particular number or price that they are looking for. Your agent should be able to tell you what the most recent sales have been in the same complex. So, you get a better idea. Otherwise, just make an offer and see if you get a counter offer from the seller. Good luck.

Sara Mehrpouyan
Rodeo Realty
Dre#01712757
http://www.athomewithsara.com
http://www.DistressedHomeOptions.com
http://www.short-sale-vs-foreclosure-help.com
0 votes Thank Flag Link Mon Jan 10, 2011
Keep in mind that builders offer one price & resale condos offer another.

Appraisers will only appraise New condos with other New condos selling in the area & can & will actually go as much as 15mi from the subject condo community to compare it to other new condos selling elsewhere.

Versus: "comping" this New condo unit out with other Resale condos in the area.

So, it may be possible that there are other Resale condos in the area selling for $275K, but if this builder recently sold his last 2-3 condos at $320K, they'll hang on to sell the final unit as close to that price as possible.

Best would be to try to find out what the other last units in this complex sold for & when. If the last one they sold was for $320K in Oct. & it's now Jan. & this last one isn't yet sold, then yes, you could probably get it for less, but probably not $275k. Try to get all your closing costs paid too.

Email me directly if you'd like me to research & see what the last new condo sold for, for how much & when.

EmilyKnell1@yahoo.com
562-430-3053 cell
0 votes Thank Flag Link Mon Jan 10, 2011
All you can do submit a sales offer. Unless an agent has full review of the property and etc. virtual opinion not to your best interest.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Mon Jan 10, 2011
Tina,

Usually everything is negotiable. And more importantly, if you don't have confidence in the agent you started working with find another. Too much money on the line to do otherwise.

Most of the new projects we've worked on will negotiate on price, but because they want to set the bar on pricing they will often negotiate other items in addition to the ones that Richard mentioned like parking, upgrades to finishes, etc...

Recently we had a client who paid asking price on a small condo here in San Francisco at $485K, but he got almost $50K off in the form of finish upgrades, storage, and pre-paid dues.

An experience broker/agent will know how to handle this.
0 votes Thank Flag Link Mon Jan 10, 2011
It really depends on the project. Some new condos (or conversions) won't negotiate on the price, but they will offer you huge incentives: interest rate buy downs, years of pre-paid HOA dues, etc.


Best of luck,


Richard
0 votes Thank Flag Link Mon Jan 10, 2011
Everything is negotiable! I agree with Phil that an experienced REALTOR will be an asset in this process. They'll have access to information that you won't (that could help your negotiating process). If you decide to go it alone, just do what you believe in. It'll be work (that's why it's a full-time job for most of us) but if you have the time, energy and effort, you can do it. Let me know if you have any further or more in detail questions regarding this particular complex or unit.
0 votes Thank Flag Link Mon Jan 10, 2011
Good Mornng Tina;
You may want to consult with another Real Estate Agent.
Have other units been recently sold? If so, this will give you an idea of comparable sales so that you can make an offer for your unit.
Everything is negotiable; especially today. You may be able to (a) get a lower price, (b) get a discount on available financing from the builder, or (c) get additional upgrades in the unit at the list price.
Good luck!!
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Jan 10, 2011
Good Mornng Tina;
You may want to consult with another Real Estate Agent.
Have other units been recently sold? If so, this will give you an idea of comparable sales so that you can make an offer for your unit.
Everything is negotiable; especially today. You may be able to (a) get a lower price, (b) get a discount on available financing from the builder, or (c) get additional upgrades in the unit at the list price.
Good luck!!
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Jan 10, 2011
Good Mornng Tina;
You may want to consult with another Real Estate Agent.
Have other units been recently sold? If so, this will give you an idea of comparable sales so that you can make an offer for your unit.
Everything is negotiable; especially today. You may be able to (a) get a lower price, (b) get a discount on available financing from the builder, or (c) get additional upgrades in the unit at the list price.
Good luck!!
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Jan 10, 2011
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