Home Buying in Tampa>Question Details

Tampashawn, Home Buyer in Tampa, FL

BUILDER CREDIT FOR NOT ADDING A STANDARD FEATURE

Asked by Tampashawn, Tampa, FL Mon Jun 18, 2012

Has anyone been able to get credit for items that you do not want from the builder during your design center appt? We have an appt with ryland homes design center and there are a few things that are standard but i do not want them. I would rather get a credit and use them towards other upgardes.

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9
Lynn Brock’s answer
Tampashawn, This depends upon the builder, if you are in your days of recession to cancel the deal. This question should have been discussed and decided upon before the execution of the contract. Frequently using an agent (new home sales or experience with builders) would have helped you to ask questions during the negotiation process.

Often the public does not realize that utizling a realtor when purchasing is a benefit. The agent can serve as an ombudsman / facilitator for the buyers in bringing up questions / concerns that they might not have considered.

Usually builders have standard features that are part of that model, having this feature removed it very difficult if not impossible especially after the contract has been signed and negotiated. The design center is where you'd select your features / upgrades, you get to select either a, b or c. Not to remove the item.

Good luck

Lynn Brock
Brock Realty
941.313.1234
0 votes Thank Flag Link Sun Jun 24, 2012
Hi There

If you are building the home from scratch, they may give you credits for the Design studio and the ability to just pay the difference for the upgrades you do want (basically credit you for the features you don’t want), but it depends on their margins. I worked for Lennar Homes and US Homes for many years, and when it came down to negotiating it always depended on their margins, size of the home, base price etc. Good luck and I hope you are able to get the credits you seek! Just ask; the worst thing that can happen is they say no, and at least you tried!

Take care
Andi Simmons
813-323-6241
0 votes Thank Flag Link Thu Jun 21, 2012
This is not rocket science!

You can handle the negotiation, but a smart buyer will have a realtor who will be your mouth piece AND will rebate you back the 4% of the sales price that's already earmarked for any agent that simply signs you in as your agent, minus $3,000 that they will keep

Example: new home purchase

300k sales price x 4% Pay Day to Agent that signs you in= $12,000 -$3,000 (realtor keeps) = $9,000 rebated back to you at closing!

I'll bet I can line up 10 , maybe 15 realtors within an hour who are willing to do this for youi!

read more here: http://www.trulia.com/blog/steve_31/2012/05/why_why_would_a_…
0 votes Thank Flag Link Tue Jun 19, 2012
I've only ever heard of a credit for omitting a standard feature once. The client wanted stained concrete floors and the builder did not have a subcontractor to do the work. The carpet was omitted. The client received a credit for the cost of the carpet, not the cost of the carpet installation. The client was told that the installation price was already contracted and had to be paid whether the labor was done or not. In this instance, it was better to do without the standard so that adhesive and tacking strips did not have to be removed. I recommend that you keep asking and keep asking for what you want. There are certain things that cannot be omitted to gain a certificate of occupancy and you cannot close on a house without the certificate. Of course, the builder wants you to be happy but also needs to make a profit. Enjoy your appointment at the design center. Remember, they want to sell you upgrades!
0 votes Thank Flag Link Tue Jun 19, 2012
It depends...

If the community you are buying into is near the end of being completed you should have more negotiating power. If there are many, many lots to build on then they may not be as negotiable.

Your Realtor can help you get the best deal. If you're "going it alone" then just be aware of important things like a Community Development District Tax (could be an extra $2k or more per year on top of HOA fees) and most likely your closing costs will include a Seller's typical closing costs (Doc Stamps on the Deed, Owners Title Insurance Policy, etc). So the builders $5k closing cost credit may not even cover these "extra" costs they are putting on your side of the equation. And... it may require you to get your mortgage through an affiliated lender and higher lender fees and/or a higher rate.

If you haven't already signed a contract with the builder, make sure to hire an attorney to review the contract if you're not working with a Realtor.

All the best,
Alma
Alma Rose Kee, PA
Future Home Realty
813.244.9898
http://www.SoldOnTampa.com
0 votes Thank Flag Link Tue Jun 19, 2012
OM GOSH! STOP!!! I'm a Mortgage Broker and they Hate any Florida Mortgage Broker, because they know, we know the real deal about their little game they like to play!

Take 2 minutes and call me as I know them VERY WELL and they would NOT want you to talk with me!

You could benefit greatly from what I know to do, especailly with them!

Call me Steve 888 662 4404
0 votes Thank Flag Link Tue Jun 19, 2012
I use to work with Lennar Homes on Tampa, Really really depends on what items you are talking about and what items you want in exchange. Now, if the standard items are all ready in the home it might be a little to late. But I have seen in the past the builder take off basic counter top for granite but at a cost. Its just one of those things that you have to see what happens.I hope you have a Realtor to help you. Many buyers try to avoid using a Realtor even duo it doesnt cost them anything.The truth is that if oyu have a Realtor that has done business with the builder in the past and has sold many homes for the builder.Things can change into your advantage.When I workied for Lennar the truth is that some Realtors that did big business could get a little more. I know and seen it for myself in the past.At the end of the day like everyone else the builder want sthe sale but at the same time there are cost and some sales managers do not budge.I hope this helps you and i hope you have Realtor to back you up.At first the buillder ofcourse will say no..keep pusing and pusing the issue...

Regards
Ben
0 votes Thank Flag Link Tue Jun 19, 2012
One of the things you overlooked is that the Builder gets a discount on the items that are standard from its contractors and suppliers because they buy them in bulk and have them built on every home. Once you take a standard featur away - you are creating an upgrade that creates cost. So in your eyes taking something away should give you money but leaving it out may cost just as much.

Remember the new increase in sales for new homes is very recent. I would suggest using your sweet voice and asking the sales representative to help you. They want the sale as much as you want the house. See if there is any way to get everything you want including the upgrades. The builder has many things built into their price so negotiate with them nicely to get as much as you can.
0 votes Thank Flag Link Mon Jun 18, 2012
Not very often. It's how much you or your Realtor are able to negotiate. If not willing to credit standard features, ask for additional closing costs, financing concessions or added upgrade package.
Jim Soda ... TheSodaGroup.com
Keller Williams Realty
Sarasota-Lakewood Ranch
Web Reference: http://www.jimsoda.com
0 votes Thank Flag Link Mon Jun 18, 2012
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