When you are purchasing a new To Be Built home from a new builder, they are like a car dealer. They give you the "list" price of the home. When you get to the office you tell them what you want or like, they pull up the base model, then you build up your price from there say you want granite counter tops rather than the laminate, or you want tile flooring rather than vinyl then they "add" to the base price. Once you have reached a final price for the home then you make your offer based on that.
The cons to this is the builder sells their homes in a neighborhood at a certain price lets say their prices in there are $200,000 and all of the other models they sold have sold for that price, the neighborhood price is $200,000. You make an offer for $175,000 and they accept it, then the value of the neighborhood has gone down to $175,000. When they try to get an appraisal for the next home to sell the latest comps will show a decline in the area, more than likely and the other homes value has just gone down.
With that said, the builders sometimes will give you a lot of incentives to keep the price at the list in my example it was $200,000 but you want to pay the $175,000 tell them to upgrade your appliances for free, upgrade your carpeting, enclose and finish out the garage for you.. This would give you the extra $25,000 in value that you wanted and they home still sells for the $200k and the area value is saved.
As for engaging with a REALTOR, you should start around the 5-6 month out window. This gives them time to help you find what you are looking for, and the builder time to complete the project. Most track builders can complete the home in 120 days or so depending on the builders backlog and the weather permitting. Some can take 180 days some as little as 90 days... just beware... your REALTOR will be able to give you specific advice when the time comes.
Everything is negotiable therefore the agent that you select will be able to check the other properties selling in the area and advise you on a good offer price. Hope this helps and good luck!
It is good to have a Realtor to evaluate communities prior to negotiating with a sales rep for a builder. A realtor has access to information about past sales and can better negotiate upgrades, features and amenities. A Realtor can also assist throughout the building process with any questions that might arise between you and the builder concerning any range of issues such as insulation, building codes etc. I am currently negotiating on behalf of a client in the Farm at Riverpointe and would be happy to do the same for you. call or text at 704.640.3001 or email at GaryMcCoy@kw.com if I can be of any assistance.
If I were a new home buyer, I would be looking for a Buyer Agent Advocate for New Home Construction (see Trulia blog below). There are certain proven techniques for negotiating new home purchases. If the builder's rep tells your real estate broker "don't bring someone else in here and expect to get the same deal", you probably have a good deal and a good agent.
You want to be very careful about contacting new home builders or going by the office or registering a visit in person or online without your real estate broker. Builders generally include a commission in the price so that they can pay your real estate broker at the closing. But there is a concept called "procuring cause" that if your real estate broker does not introduce you to the builder in the right way and timing before you meet with the builder, the builder can keep your brokers commission as extra profit, thereby removing the potential for you to be independently represented by your own real estate broker.
Before you contact any agent or new home builder, you should review the North Carolina Real Estate Commission brochure about Working with Agents to understand agency http://www.ncrec.gov/pdf/brochures/WorkingwAgents.pdf .
If you are doing anything in the next 9 months, it should be focused on saving like crazy and getting your credit score into a range that a lender will be willing to make you a loan. Taking the right home buyer education class would also be a good move. Please consider me a resource and if you have any questions about real estate in general or a property in particular, please do not hesitate to contact me. If you appreciate an answer, please give "thumbs up". For the most helpful answer, please say thanks with a "best answer" click.
If you are talking about new construction that has already begun, or is a completed "inventory" home - absolutely, make the builder an offer. If, however, you are talking about a "to be built", most builders will give the price that they require to build the house for you. This is not to say that you may be able to negotiate your upgrades & certainly ask for seller paid closing costs.
No matter what builder you are thinking about working with, keep in mind that the builder's sale rep's loyalty is to the builder and not to the buyer. Their job is to secure the very best price & conditions for their boss - the builder. Please hire a buyer agent to represent you and your best interests! You need an experienced agent to negotiate for you.
Builders welcome buyer agents (we bring them a lot of business!) and consider buyer agent commissions to be part of their marketing costs. Having your own agent WILL NOT change the price of the house! The builder will charge you the same for the house, with or without a buyer agent. You WILL NOT get a lower price on the house if you choose to not have your own agent! Your buyer agent will ensure that you are getting the very best value & conditions for your hard-earned money!
Kathleen Turner, ABR, CRS, ePro
I work with primarily buyers and specialize in negotiation. Builders will negotiate and will actually give better deals to buyers with agents.
If you're looking at to be built and not inventory already built homes, expect 90 days for building time.
I'd love to help you as your agent and my services won't cost you anything extra in a transaction as a buyer.
Please feel free to call or email me directly with any questions!
Hoping to hear from you soon and to help you with the home buying process!
Yes! Most builders are willing to negotiate. Keep in mind there are other things to negotiate besides price such as upgrades and appliances. I have a lot of experience with new construction and would love to help you out. Feel free to call or email if you have any other questions.
There are different parts in an offer that are negotiable. The price of course, closing costs, upgrades, lot location. Your timing is just right. The services of a Realtor are without a cost to you and a builder will not give you a discound for going unrepresented.
I am a full time Realtor with many years of experience. I will be happy to guide you with your house
Ro Garcia, Reator
Easy Street Realty
Congrats on your decision to buy a new construction home! Pretty much the earlier the better to get the assistance of a Realtor. Every builder has differnet "build times". So even tho you are 9 months out, now would be a good time to start the process.
As far as making an offer..our experience is, if you are starting from the beginning, the builders have their prices set. They usually offer incentives, closing costs etc. However, if you find a home that the builder has started or a "Spec" home, they will entertain offers.
I'm glad you are planning to get the assistance of a Realtor. Most people do not understand that those very nice agents sitting in the Model homes, are working for the builder...not the buyer! Every buyer has the right to have their own representation. And statistics show that buyers that use a Realtor, get a bettter "deal" than those that don't'!
I would be happy to meet with you to discuss this in more detail! Just email me and let me know what time works for you.
Have a great day!
The best way to make an offer is through the help of a Realtor. I know that sounds like a shameless plug, but it is our job to understand and explain contracts and make sure your intrests are protected. Many builders have their own contracts so it is important to know what you are signing. With a good Realtor you can also negotiate buyer incentives and closing costs. Usually you do not fluctuate very much on purchase price, but there is always negotiating room. If you are 9 months out it would be best to start looking now so when you are ready you will be comfortable with a builder or community. If you are looking at a to-be-built home I would factor in 90day build time. If you are jut looking at new construction and are getting a loan I would anticipate 20-45 day closing. I would be happy to send you information on various builders and new neighborhoods if you would like, I can also send you a search with available homes. Feel free to call me anytime and we can discuss what the best process for you will be!
Have a great day,
Builders have great incentives in this market and often times have allowances for upgrades or add ons. In this market, everything is negotiable and builders are no exception. I would be happy to discuss with you further.
Helen Adams Realty
Coldwell Banker United, REALTORS
You can most definitely make an offer on a house. Some builders are more flexible with discounting a house than otehrs are...But depending on yoru situation in regards to financing and other terms you can always make an offer on a house price. I have sold a few new construction homes and have not had anyone pay the builder price yet.....
In regards to when to get a Realtor the sooner the better. if you are none months away from buying; are you looking at being in a home in nine months or starting to build in nine months? With the average constrcution taking 3 to 4 months you may not be as far out as you think.
Feel free to e-mail me at firstname.lastname@example.org ro call me at 704-519-7895. I would be happy to discuss your situation with you.