Home Buying in Tumwater>Question Details

Mtnbikescott, Home Buyer in Olympia, KY

Hi all, looking to buy a new house in OIympia, WA that's listed at $389K, Zillow shows 5 others in the same complex that sold for 385 and

Asked by Mtnbikescott, Olympia, KY Tue Mar 16, 2010

zestimate is 355 - 360 for each. Anyone have a recommendation on what I should offer? I was planning on offering 359 but it also appears the builder is still getting asking price or near it for all the homes in this development

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6
Mtnbikescott, as Dan noted, new construction is different. For one thing a builder will be reluctant to cut the price of one unit, because that becomes public knowledge as soon as the deal closes, and ruins their bargaining position going forward on the remaining units (assuming the units are similar). Thus it may be the builder is willing to negotiate items within the unit (upgrades) rather than price. In that regard it's sort of like way back in 1988 when I bought a truck at a Ford dealership. For some reason they wouldn't negotiate the price of the truck at all, but I got a hell of a deal on the value of the trade-in.

Oh, and I'd also agree that Zillow is irrelevant in these types of issues.
1 vote Thank Flag Link Wed Mar 17, 2010
Ignore Zillow - and get some hard facts from your Realtor. If you don't have one - Get one.

Find someone to negotiate on your behalf. Your interests will be served, and you can end up getting a great deal!

Good Luck!
1 vote Thank Flag Link Wed Mar 17, 2010
Mtnbikescott,
Zillow has no bearing on what you should offer. In various markets they are within 10% only around 1/3 of the time. Working with builders is interesting and requires different strategies to be successful. First, do you have your own agent? If not, get one. The very nice and friendly agents on site work for the builder and by contract have to put the builder’s interest first.
If you don't have an agent, interview a few and make sure you have one with successful experience dealing with new construction. I have various strategies that work well, meeting both their interests and of course getting something extra out of the deal for my client.
If you have been using the builders agents, and they have a registration policy that will not allow you to bring in your own, call me and we can discuss some useful approaches. Best of luck with your purchase.
1 vote Thank Flag Link Wed Mar 17, 2010
Instead of asking this question in a forum, you should be asking your own agent. If you do not have an agent, get one right away and make sure they are very good at what they do. If you need a recommendation, I know one of the best in Olympia, just contact me directly and I will give you his information so you can interview him.
0 votes Thank Flag Link Wed Mar 17, 2010
Hi Mtnbikescott:
All the previous answers have given you very good advice. Many buyers looking at new construction homes are asking the same questions. The key, as mentioned, is that the builders agent represents the seller, not you. Some think that by going directly to the Seller and their agent they will get a better "deal". This is not necessarily the case. If you do decide to interview agents for the job of representing you and assisting you in the complete process of making an offer and purchasing your home, I'd be happy to meet with you.
0 votes Thank Flag Link Wed Mar 17, 2010
First and foremost Zillow Zestimate is not an accurate tool to use for writing offers on a home. The zestimates come from tax record asssesments. Many and most which are way off. Your realtor/agent should be pulling the most recent comps in that neighborhood, itemizing upgrades, etc. and recommending a suggested price to write an offer. There is a reason agents/brokers/lenders/appraisers don't use zestimates for their reports. We use real time data out of our MLS systems to evaluate a property price.

As to what you should write your offer for, again I would recommend you work with your agent, and, if you don't have one, I would strongly encourage to you to get one. The listing agent is not working on your behalf.
0 votes Thank Flag Link Wed Mar 17, 2010
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