Devin Avilla, Home Buyer in San Jose, CA

How much can you Negotiate with New home builder? 10% 20%

Asked by Devin Avilla, San Jose, CA Sat Aug 16, 2008

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Scott Godzyk’s answer
There really isnt a set amount you can negotiate. You really need to see what this builder and what other builders have recently sold similar homes for. That way you can guage value. Your best bet is to have a buyer broker looking out for your interest, have them get paid from teh seller that way their services dont cost you anything extra. as well make sure they deal with new construction on a regular basis, it is an are in itself. Good luck Devin
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0 votes Thank Flag Link Fri Sep 12, 2008
Check out to learn how to negotiate with big builders. They provide you handy scripts to use with big builders and their sales agents. Good luck!
1 vote Thank Flag Link Fri Sep 12, 2008
In this market, and depending on whether or not the builder is a publicly traded company like some of the big ones are, you could get a 50% discount. If they are publicly traded, they are more inclined to cut their losses, because they need to maintain stock prices as best they can and keep shareholders happy. Even if they aren't, offer as low as you want to go. Don't worry about lowballing, because they aren't emotional about the property. They won't get insulted!!! This is strictly business for them, and even if they take a loss, they will report the loss and save on taxes for the fiscal year. You've got a lot of leverage when dealing with builders in a market like this, so use it very wisely.
0 votes Thank Flag Link Thu Aug 21, 2008
Hi Devin,
There is no hard and fast rule with New home builders what you need to do is make sure you bring your agent with you on your first visit when you sign in. This is because they generally won't let an agent represent you or help you negotiate a great deal if you already signed in. Another thing sometimes you can not only get a discounted price, but I've also gotten my buyers Free upgrades on there purchase.
I have assisted several buyers to purchase new homes and in each one we negotiated for something different.
If you need assistance with your purchase I have the experience you may be looking for, just email me at or call me at 408-705-6578. You can check me out on my web site at and if you would like to search for properties it is FREE!!

0 votes Thank Flag Link Thu Aug 21, 2008
I used to work for a builder. They have a different mind set than you typical resale seller. There is a lot involved ss they depend on the price to support appraisal and affect the trend within the community to continue to sell and support the previous purchasers. An experienced agent can structure an offer to be a huge win for you and result in the sale the builder wants.

Check out my website and email me if you are in the market to purchase.
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0 votes Thank Flag Link Tue Aug 19, 2008
It all depends on the traffic of the sales and how desperate the builder are. You can gauge the price of the sales based on the comps in the area. If you need the comps for a specific sales, please don't hesitate to contact me: Another tactic is to see what other builders in the area are offering buyers (i.e. credit toward buyer's closing costs, $$ towards upgrades, etc.) and use that as your negotiation tactics.
0 votes Thank Flag Link Sat Aug 16, 2008
A good buyers agent should be able to better educate you on that builder's history of negotiating, and help you compare it to other homes in the area. If you don't have an agent, but would like a referral, feel free to contact me directly, and I'd be happy to see if I know of someone I can refer
0 votes Thank Flag Link Sat Aug 16, 2008
there really is no set amount, it depends on alot of things. namely how desperate is that builder or how bad does he want to sell. the second thing is how much does he have that property mortaged for, does he owe more than what it is worth and will the bank be willing to take less to allow the sale if it is mortgaged to the hills. Best way to find out is to make the offer. look to see what his last sales were for, use that as a guideline.
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0 votes Thank Flag Link Sat Aug 16, 2008
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