Home Buying in 59718>Question Details

Cheryl Horsl…, Home Buyer in Manhattan, MT

How much will a new home builder negotiate with me on a new home purchase?

Asked by Cheryl Horsley, Manhattan, MT Fri Jun 22, 2012

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It depends on the builder. There are several builders in town that price their homes according to the market and they negotiate very little if any. Other builders have been negotiating about $5,000. New construction is currently in high demand and on average they are selling close to or above asking. If you have any further questions please feel free to call me, as I would be happy to discuss which builders you may have more negotiating power with.
1 vote Thank Flag Link Fri Jun 22, 2012
Hi Cheryl,

I just tried to answer your question and was just about finished and it disappeared. Anyway, right now homes are selling for around 95% of asking price. Every situation is different. I would suggest that you contact a realtor to find out what other homes in any given area have been selling for to get a comparative idea of value before making an offer.
If I can be of further assistance, please feel free to contact me at MayoRealEstate@gmail.com or call 406 580 0856.

Good Luck!
Rich Mayo
Broker / Coldwell Banker RCI Realty
1 vote Thank Flag Link Fri Jun 22, 2012
Cheryl,

Usually a builder has a really good idea of his costs to build and has priced the listing (if he is working with a REALTOR®) to reflect his costs and allow profit (if he doesn't make money, he is going out of business remember.). Builders in Bozeman often negotiate by offering to pay closing costs and maybe a small discount to the listing price (3-5%) but I would be shocked to see a represented builder reduce the price more than that.

As a note, builders will often reduce the purchase price further if you as a buyer decide to work without agent representation. Just remember, that small savings could cost you a fortune! As a buyer, the Seller pays for you to have your own REALTOR® who works for your needs and to protect your interest. The purchase contract is just the first step in the home purchase process; your REALTOR® will help you navigate all the other questions and without one, you are relying on the Seller, who is representing his own interest, to help.

Good luck, and call with any further questions!
1 vote Thank Flag Link Fri Jun 22, 2012
Agreed that builders have done their homework, have representation in most cases and have priced their projects properly. Remember that if you wait, chances are the rates and going to make a shift and the small percentage you pay to get into that New home will seems pretty insignificant when your are priced, due to rates, right out of the market you are currently able to qualify for. The market looks pretty good, there are still re-sales out there as well, at really good prices as well as a huge jump in number of building permits being issued. Like the other qualified professional Realtors, I will say., call a Realtor, you will not be sorry you did. Joyce Miller Independent Broker/Owner(406)539-7355 Joyce@movetotherickies.com
0 votes Thank Flag Link Sun Mar 3, 2013
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