Home Buying in Palo Alto>Question Details

Animalfarm, Home Buyer in Palo Alto, CA

I hear one can get 15% off list price at Altaire. do you think one get more than 15% off in nov/dec this year?

Asked by Animalfarm, Palo Alto, CA Wed Jul 22, 2009

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Hi AnimalFarm,

The easiest way to answer this question is that there is no set price off the list price. Most builders/developers are willing to negotiate. Agents who are familiar with new development negotiations (like myself) are you best bet in getting the best deal available.

If you are working with another agent already don't wrap your mind around getting a certain percentage off the list price. I assume you partially choose your agent for their negotiating abilities so after he/she is at a point where they think the listing agent can/will go no lower - that is your best price.

To answer the second part of your question will it be better in nov/dec. No one knows. It's a gamble. Right now local statistics are saying the economy is going up. You can even look at the stock market it the Dow Jones broke 9,000 which in my opinion was a bit of a milestone. Could everything get worse again? Of course, but no one knows for certain; no one has a crystal ball with all the answers.

Another thing you have to look at is if you are looking at purchasing a specific 1-2 units, some units will probably be gone by 2010. Will it be the one you want?


Brendan Aiello – Cashin Company Realtors
AielloB@gmail.com
(650) 403-6262
Twitter: @BrendanAiello
http://www.BrendanAiello.com
Web Reference: http://BrendanAiello.com
0 votes Thank Flag Link Thu Jul 23, 2009
Hello Animalfarm,
Having worked for a builder, I am quite familiar with how the negotiation process works. If you are looking to get into a new home this year, I suggest not waiting until the end of the year to do so. The credits that are available for new construction today may not be available if you wait. Plus, you don't know what the rates will be at that time.

I highly recommend you find an agent who knows how to negotiate with builders so that you can get the best deal today.

Good luck!
0 votes Thank Flag Link Wed Jul 22, 2009
Hello Animalfarm:

First, I would confirm that Altaire is, indeed, lowering its prices by 15 percent on all new inventory, because while the market has been slow, new homes are now selling without further price drops, so most of the developers who dropped prices in June have been briskly selling available inventory.

As for a further reduction in November and December, I do not see that on the horizon for Altaire unless:

1. The remaining number of homes within the community that are unsold remains high
2. The bank agrees to a further reduction in prices--remember, the bank holding the construction loan is often in the "driver's seat" when it comes to adjusting home sales prices.

At this time, Altaire appears to be selling out standing inventory, so the developer may wait another year before committing more funds to any further building. Also, most of the developers who were able to get additional price reductions for the summer, had to work very hard to convince the lenders that the drop was required. I think another push toward a further price reduction will be darned near close to impossible especially since most housing is on an uptick and the economy seems to be slowly recovering. If things were still trending heavily downward, then perhaps the bank would consider a further reduction, but waiting for the last elusive 15 percent may mean not getting any Altaire homes for yourself.

Good luck and happy house hunting!!

Sincerely,
Grace Morioka, SRES, e-Pro
See My Blog on Saving Money By Buying w/ a Facilitator
Sunnyvale, CA
0 votes Thank Flag Link Wed Jul 22, 2009
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