Home Buying in 97229>Question Details

Tina, Home Buyer in Portland, OR

How much can I negotiate with new home builder?

Asked by Tina, Portland, OR Sun Jan 13, 2013

Area 97229 or 97225
New, detached house
Price up to $290K
I wanted to make an offer for a house but was denied.

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Answers

6
Paul Johnson’s answer
Hi Kris,

Every scenario is different, but as a general rule, with inventory at 3 months, most sellers (especially builder's) will not come off their price much. You may want to consider asking for some closing cost incentives instead. Also, something else to consider is have representation to help you navigate the offer. If a case can be made for a lower offer, that can be leverage you can use to get a fair price.

Best of Luck!

Paul
0 votes Thank Flag Link Wed Jan 16, 2013
Your own experience may give you the answer you are looking for. I agree with what has been said before. It is usually difficult to succeed with a lowball offer on a new construction. There is an exception. If the house is a standalone project or an infill, the builder might be more inclined to negotiate. As has been said, there is very low inventory right now making it a seller’s market. Lowball offers are probably not the best strategy
0 votes Thank Flag Link Mon Jan 14, 2013
where did you get the numbers to deduce it was a low ball offer?
Flag Sun Nov 9, 2014
I will answer from a lenders side and what I normal see. First this would be a first time home buyers price range for the zips you have listed and you may have noticed there is currently a low amount of inventory in that price range.

When dealing with builders I agree that moving off the listed price is not normally done and given the market I would say asking for some upgrades or help in closing cost would be more likely. I have found that over my 20 plus years as a lender that this holds no matter what type of market where in.
0 votes Thank Flag Link Sun Jan 13, 2013
Kris having worked as a rep for new home builders and doing general Real Estate I have found that most builders do not do too much negotiation. If they are building in a subdivision they are going to want to keep the sq ft price fairly consistent for appraisal purposes and also to keep their existing home owners happy. Generally they will be much more willing to do upgrades like a refrigerator or crown molding as opposed to lowering their price. The one exception I have found is that when they are finishing up a neighborhood and they only have a few homes left to build you might have more leverage. If a home has been in their inventory for a long time there is always a possibility of a more agreeable seller.Make sure you know exactly what is a standard feature. Some model homes are loaded with upgrades....most builders will have a sheet that states exactly what comes with a base line price.
0 votes Thank Flag Link Sun Jan 13, 2013
Hi Kris. My question to you would be: do you work with a Realtor at this time? I assume you've made the offer either through a real estate agent you work with or, and it happens, just going straight to an agent who represents a builder in the area, agent who can represent both the builder and you. Generally speaking by having your own represantation in a transaction and being faithfull to an agent you feel comfortable with it will save you a lot of time and nerves and, I really hope, you can get into a nice deal faster.
In 97225 there's not much inventory for the price you want. That's an expensive area in town and this kind of money will only bring you some older or smaller (or both) property. Most likely upgrades/repairs needed too.
In 97229 is a little better. Not a whole lot but better. However if your expectation would be for a fancy house on a good size lot I just need to warn you that the expectation won't come close to the market reality at all. So my advise to you is to get along with a realtor (of your choice) who can present the market conditions and what the inventory has to offer and (for you) to be realistic when making an offer because low offers don't have any chance these days. The listings priced right will attract multiple offers with a snap of fingers so you'll compete with other people interested on the same things so who "wants it more" will be the one gettin' it eventually. Your agent can draw a strategy on what it has and needs to be done so you'll be the happy owner of a house in the months to come. Don't forget to get pre-approved at first because an offer without a strong back-up lender endorsement won't help you at all.
If I can help you in any other way feel free to contact me. All the best to you.
0 votes Thank Flag Link Sun Jan 13, 2013
Hi Kris,
The best way to come to terms with any seller is to present a strong offer that shows that you are qualified and have the ability to close the transaction. An experienced Realtor will be able to represent your interests, help negotiate the terms of sale, and help navigate the transaction to closing. I would be happy to meet with you and discuss how I can assist you in the buying process. Please contact me at 503-720-9393 or Jon@portlandhometeam.com.
0 votes Thank Flag Link Sun Jan 13, 2013
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