Home Buying in 28173>Question Details

Looking In U…, Both Buyer and Seller in 28209

Can you negotiate on new construction?

Asked by Looking In Union, Nc, 28209 Wed Apr 9, 2008

Builder has some spec homes but we prefer a differant plan. I know you can always offer anything but what are the chances that they will negociate on a to be built home? They are offering $15000 in options on a new build with no additional add on to the price of home. But it seems that the few built homes that were sold, closed at 93-96% of the listing price.

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21
The short answer is yes. The long answer is that it depends on a lot of factors. Typically, negotiating on a custom build is going to be a little more difficult that negotiating on an existing spec home. Many builders are carrying high levels on inventory right now, and this is certainly true in the Waxhaw/Marvin/Weddington area. They need to get those houses off the books, and often are ready to negotiate on the price and other terms.

Insofar as negotiating on a home that has not yet been built, some builders will and some won't. Many of the smaller "boutique" builders that specialize in super high-end homes won't budge on their prices because they need to protect their brand image, though even their attitudes seem to have changed somewhat recently. Other smaller builders...those that build 4-5 "normal" houses per year, are usually willing to negotiate. I've never tried to negotiate on a custom home with any of the big guys...Standard Pacific, Ryan, etc...but most of them operate on sort of an "a la carte" pricing structure that's created by the bean counters, so they probably won't deviate too far on a custom build. But again, existing spec homes are a different story.

I will say this...in the 28173 zip code...you'll probably be much better off buying existing construction whether it be a new spec home or a resale. There's a ton of inventory out there and a lot of really good deals to be had.
1 vote Thank Flag Link Wed Apr 9, 2008
Yes, you absolutely can negotiate on price and terms. Just make sure everythiing is detailed and in writing. Make sure if you are comparing to sold homes that you are comparing apples to apples, i.e., square footage (both including basement and not), upgrades, bedrooms, baths, lot size, garage space, etc. If they really are simliar homes, then point out the price difference as well. Have you tried hiring a Realtor in your area to negotiate for you? Usually the seller (builder) will pay their commission, but double check. A Realtor can help you find the correct comps to compare and use negotiating skills to help you. Good luck!
1 vote Thank Flag Link Wed Apr 9, 2008
Absolutely! That's what we do for you!
0 votes Thank Flag Link Sat Jul 31, 2010
For years prior to going into general real estate, I worked directly for several of the largest new home builders in Sarasota and Port Charlotte, Florida. Definitely, the price can be negotiated in new home construction. Most people add all of the upgrades in, then decide what they are going to offer to the builder. Not all builders would negotiate that much back in the boom times, now however, if you can't locate a spec home you would like to make an offer on, and you wish to go through the building process, you can always make an offer - the worst thing that could happen is you get a counter offer from the builder.
0 votes Thank Flag Link Wed Jul 29, 2009
Absolutely!! Builders will certainly be willing to negotiate! It is important though for you to be represented by a licensed real estate agent - someone working on your behalf and looking out for your best interests. The builder has someone looking out for their best interests in the deal so why shouldn't you?

In your particular situation, you can ask them to lower the list price, you can ask them for more money towards options, you can ask them for specific options to be included or you can ask them for all of the above. What's the worst thing they can do? Say no? They're certainly not going to kick you out of their office. The idea is to agree on a deal that benefits both of you. The builder gets the lot off their books & makes some money, you get the house you want, with the options that make you happy at a price you can afford.

If you're still looking in Union County give me a call! I love to negotiate new construction deals.
0 votes Thank Flag Link Wed Jul 29, 2009
The answer to the question is yes, you can negotiate.

I have represented builders for nearly ten years. I have also represented buyers.

A strong word of caution!!!!! Do NOT go into a builder's showroom without an agent to represent your interests! In North Carolina, builders salespeople do NOT have to be licensed, and therefore do NOT have to DISCLOSE that they represent the builder. They will surely tell the seller everything that you say (esp about that new job or pay raise or baby on the way, etc that can hurt your negotiating power).

Sure they will tell buyers they are "getting a better deal," but who do you think is really getting the better deal? That salesperson (not agent) that is taking both sides of the money. This is part of the reason why I think all builder's salespeople should be licensed ... to protect the consumer from these unprofessional sales practices.

I try to educate all buyers who come into my show room that the fee for their buyer's agent is offered in the MLS for their buyer's agent for a reason: For their protection & my reduction of liability. I like to go to sleep at night, knowing I do my best to do business the right way. And I am a licensed REALTOR(R) who adheres to the Code of Ethics. NOT just a builder's UNLicensed salesperson.

Caveat Emptor! Buyer Beware and you should use a REALTOR(R)!
0 votes Thank Flag Link Tue Apr 7, 2009
This is the buyer's market and everything is negotiable!
Web Reference: http://WaxhawHomepages.com/
0 votes Thank Flag Link Thu Feb 12, 2009
Looking,

New construction prices can be negotiates, however, the best results would come throught the guidance of a local real estate professional that knows tha area market and a bit of the development history.

It would be beneficial to have access to the sale prices of recently sold homes, both new construction and resales as well as the current resale asking prices. Builders also do "promotionals" from time to time. This may involve discounting prices, free upgrades, lot discounts etc.
0 votes Thank Flag Link Fri Jan 23, 2009
Negotiating on your own with a builder is very tricky. The onsite agent hopefully explained agency relationship and told you that they work for the seller. (the builder). Which means they don't always have the buyers best interest in mind. An experienced buyers agent will work to get you the best price on the home. In most cases the buyers agent will have worked with most of the builders in the area they sell in, so will have more knowledge on what the builder can negotiate. Having a buyers agent work for you in not only negotiating price, but other factors in purchasing a new home, such as inspections, repairs, taking you through the closing process, needs to be taken into consideration as well.

Hopefully this information has helped. If you need any assistance, feel free to contact me. Also, please visit my website at http://www.NancyCosta.com. Best of luck to you. Nancy
0 votes Thank Flag Link Fri Jan 23, 2009
I heard that if you go straight to the showroom realtor and let them know you dont have a realtor, they will give you a credit since otherwise the builder would have to pay your buying agents commission. So you can save a few % there.
0 votes Thank Flag Link Wed Jun 25, 2008
Most definitely. In Real Estate--everything is negotiable. But your offer is more likely to be accepted if you ask for items to be included in the purchase price of the home, such as refrigerators, landscaping, blinds, air conditioning, etc., as opposed to offering a lower price. The final sale price is what shows up on public record, so if they accept an offer with a reduced price, that sets a trend for the sale of future homes. Also, It is important to the builder to keep the sale prices fairly consistent, so they don't have their existing homeowners upset because someone got a better deal.

Hope that helps! Have fun home shopping!

Terri Hudson
Web Reference: http://www.HudsonTeam.com
0 votes Thank Flag Link Wed Apr 9, 2008
Absolutely, everything is negotiable, especially in the current market...Plus, when the builder quotes $15,000 in options that is at retail price with his profit included, but he only takes the wholesale reduction, which is more like $10,000

I always offer less than asking price, even if the builder's agent has said the price is firm. Sometimes it is, but more often it is soft. One agent on site told me that his builder has never taken a nickel off the price, but lo and behold, we offered 5% low, and he came back at 3 %, so we saved 2%!! A considerable amount in this case.

Thanks and good luck

Ed Francell
Prudential Georgia Realty
0 votes Thank Flag Link Wed Apr 9, 2008
You can always negotiate, as we all agree. Even with so much inventory a builder may try to hold true to the list price, but I go with the theory it never hurts to try. You can offer less, ask for closing costs, or upgrades as trade offs if they won't come off the price any. If they won't budge on the price get creative and ask for other things. In a buyers market right now they will most likely be willing to accept less, or find some other homes you might be willing to consider and let them know you have some other options if this one doesn't pan out. Be honest, don't make it up, but with so many homes out there you can really pick and choose right now. It's great that you have done your homework with list to sell percentages, knowing those numbers will also help you with your negotiations.
0 votes Thank Flag Link Wed Apr 9, 2008
MOST BUILDERS COMPETE FOR YOUR BUSINESS WITH OTHER BUILDERS IN AN AREA. MOST WANT AND NEED YOUR BUSINESS, WETHER IT'S NEW CONSTRUCTION OR SPEC HOMES. THE INSTANCES WERE NEGOTIATING TOUGHENS UP IS WHEN A BUILDER IS IN A VERY "HOT' AREA AND BUYERS ARE STANDING IN LINE TO BUY. NO NEGOTIATING NECESSARY THEN, BUT THAT'S NOT THE NORM. USING A PROFESSIONAL TO REPRESENT YOU IS THE BEST WAY TO NEGOTIATE SUCCESSFULLY.
0 votes Thank Flag Link Wed Apr 9, 2008
You sure can! New construction is way down! Make an offer, what do you have to lose.
0 votes Thank Flag Link Wed Apr 9, 2008
The beauty and I think the fun of real estate is that it is all negotiable. Being a buyers market in some areas builders may even have a large amount of inventory on hand and be willing to deal on those. Now in most of 28209 there are resale homes. I use to live on Queens Road in the Myer's Park area and I am not sure of what area you are speaking of for builders. But to stick to the question yes everything is negotiable.

Larry Story
Coldwell Banker Triad
0 votes Thank Flag Link Wed Apr 9, 2008
Any home can be negotiated for. But there are some things to consider.

- If the builder is building this home just for you, they'll have less incentive to negotiate. If you're looking to buy a home that is complete and has been on the market for several months after completion, the builder may be more willing to lower the asking price in order to reduce their inventory and save on carrying costs.

- If the builder is already adding $15000 in options, that's the same as reducing a "completed" $300,000 home by 5%.

- Have a real estate agent work with you and pull comps for the neighborhood. Find out what the average per square foot in the neighborhood is, and what features are included at that price.

- You may need to show that you're a good investment. Can you put 15-20% cash down? Are you willing to close in a minimum amount of time? What kinds of real estate commissions are involved?

It all depends on the builder, the neighborhood, and the local market. Good luck!
Web Reference: http://www.StantonHomes.com
0 votes Thank Flag Link Wed Apr 9, 2008
Absolutely! Especially in this market builders are willing to negotiate more than in recent years. A potential buyer can also include changes or upgrades as part of the price.
0 votes Thank Flag Link Wed Apr 9, 2008
Yes, at times you can negotiate even on to be built homes. I have found that the best way to do this is to negotiate on things that you would like added to the basic house. For example, I have had one client, while we were talking with the sales person at the show home, we just kept discussing that they really wanted a finished garage. The wife didn't know if she really wanted to buy unless there was a finished garage.....They ended up getting the totally finished garage at no additional cost. This can be done on different items. Discussions between the buying parties can often help. The Salesmen want to make the sale. Now, I must add that the best concessions can be found on already partially completed or completed homes and the saleman can say yes and then have the people above them say no. Of cource, then you can just walk away. Never appear too sold on a house. Don't gush over it.

Let me know if I can help you in any way. Even when buying new construction, you are wise to have a Buyer's Agent to represent you. The builders know that they need to keep the real estate community happy with them. This give the buyer added "clout" when dealing with the builder. I try to be at all meetings when my buyers are having a new home built. I can back them up when questions about what was said come up. We may be a small company but we belong to a very large industry and REALTORs talk to each other.

Sara Rich
Rich Properties

Warning: Do not buy new construction unless you are fairly sure that you will be living in the home for at least 4 to 7 years. New Construction is like buying a NEW car. Call if you want to discuss this.
0 votes Thank Flag Link Wed Apr 9, 2008
You can and should always negotiate on any offer for purchase; new or resale. Whether its for the furniture the Seller wants to keep for a model or to upgrade to stainless steel appliances. You should always try and get the best deal for you. But what you set at your worth may not be the same as the Developer/Seller. But it is good business to try.
0 votes Thank Flag Link Wed Apr 9, 2008
absolutely, do it all the time.....
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Wed Apr 9, 2008
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