still looking, Home Buyer in Oceanside, CA

Brand new homes

Asked by still looking, Oceanside, CA Sun Sep 6, 2009

How are offers placed on newly constructed homes? If its listed for $400,000 can you offer $375,000? If so, how likely would it be that the lower offfer is accepted?

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New homes sales are about supply and demand. In a hot market they will normally get their full price. In a slower market they will always negotiate to keep their inventory moving. One thing to always remember is the house you want only comes on a couple certain lots. If you are negotiating for your favorite lot you can get beat out real quick by someone else ready to sign.
0 votes Thank Flag Link Mon Feb 8, 2016
I agree with Team Carver's answer below.....adding that a builder who has "Standing Inventory", or a home that is completely built with no buyer is much more likely to negotiate price on that home than on future build outs. Sometimes a home will come available at the last minute due to the buyer not being able to complete the purchase.

Keeping tabs on the builders for this type of situation pays off.

Also, having an agent represent you will make the whole transaction go more smoothly, as you will have representation of your own. Having a buyer's agent present can prevent interest rate hikes at the last minute. Builders often require you to use their lender in order to get incentives and the builder's lenders are famous for interest rate hikes on their captive audiences.
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0 votes Thank Flag Link Thu Dec 31, 2009
Price and terms are negotiable, just as in resale listings. The track agent may discourage your submitting an offer that is lower than asking price. Keep in mind the track agent likely does not have the authority to accept lower offers. If you present an offer in writing, it must be presented to the builder (seller). You may need to agree to submit the offer on the builder forms.

How negotiable the builder is will depend upon several factors including: market conditions, availability and what stage of construction the home is in. You are more likely to receive a discount if the home is standing inventory.

Please keep in mind on a new home, the track agent represents the seller and does not represent the Buyer. I highly recommend working with a Real Estate Agent. Generally, there is no fee to the Buyer to have an agent represent you.
0 votes Thank Flag Link Tue Oct 6, 2009
Yes you can make an offer that is lower then the asking price. I would highly recommend that you retain a buyer agent to help you.
0 votes Thank Flag Link Mon Sep 7, 2009
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