Home Buying in Brooklyn Park>Question Details

Elijah, Home Buyer in Brooklyn Park, MN

I'm about to make an offer on a new construction home in Brooklyn Park.

Asked by Elijah, Brooklyn Park, MN Wed Apr 23, 2008

I'm about to make an offer on a new construction home in Brooklyn Park.
The builder has given us a price, and I'm trying to determine how much negotiation room we have. Do you know the percentage of asking price for new construction in Brooklyn Park? I don’t want to insult anyone, but I also don’t want to pay too much on this home.

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On a builder spec (already built) house you have much more leverage than a custom build. The builder simply will not build it if they are not making a profit. Further, since most new construction is so custom, there are no reliable figures for a "% of original asking price" for to-be-built as they often are not listed.

I can tell you I know of a couple recent spec houses that sold for 20%+ off their original list just recently... at prices far below what the builder paid to build them.
Web Reference: http://www.AaronSOLD.com
0 votes Thank Flag Link Wed Apr 23, 2008
Hi Lee,
As with most sellers these days, a good majority of builders aren't in as good of a position as they were a few years ago. They'll tell you the price, which is similar to an asking price any from a homeowner. This is only a starting point - what they would really like to get for the home. Is there room to negotiate? More than likely yes.

As Brad mentioned, it's hard to this specific home's value without knowing more information. If you're working with a Realtor (which you should be), they should be able to determine what comparable homes are selling for in that area.

If you aren't working with a Realtor - get one quickly. When working directly with a builder, they only have their best interest in mind and not yours. I've had friends over pay for little things a builder will throw at them, just because they didn't know any different. The one that stands out is a $250 charge for a programmable thermostat. These cost less than $100 at Home Depot (or Menards, Lowe's, etc).
Web Reference: http://www.thegoheens.com
0 votes Thank Flag Link Wed Apr 23, 2008
Lee, I wouldn't worry about insulting anyone. You are in a great position, so you should take advantage of it. The specifics you are asking about are hard to come up with, without knowing what you are buying. Send me an email, or give me a call with specifics, and I can try and help you out.

Brad Anderson
Realtor
BradAnderson@kw.com
763-486-5338
0 votes Thank Flag Link Wed Apr 23, 2008
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