Home Buying in Rochester>Question Details

Rocestate, Home Buyer in Rochester, NY

I'm considering a Ryan Home near Rochester, NY and are curious about our negotiation powers..

Asked by Rocestate, Rochester, NY Mon Aug 25, 2008

We've met with a couple of Ryan agents, as well as a local realtor in order to gain some perspective on our options. I understand the pitfalls that we may encounter with Ryan (i.e. lower quality construction, pressure to use NVR) as we've read many, many online articles, reviews, and discussions about Ryan, and have also talked to a couple of current Ryan Home owners about their experiences. We're planning to meet with a local bank in order to have a second option in terms of mortgage lender, and are prepared to walk away from contract negotiations if Ryan is unwilling to work with us on negotiations. The main things that we'd like to negotiate are lot premiums and/or closing costs. How likely is that they would be willing to work with us on these negotiations? Nothing has been signed and we've not contacted the Ryan agent about our desires.

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I am probably late to the table on this question, but felt compelled to answer. I've sold a number of Ryan homes through the years, acting as a buyer's agent. Ryan reps are very good at marketing their product and my clients have found my input and involvement has been critical in the process.

For one, you won't have anyone looking out for your best interest. What that boils down to, is that you don't have someone backing you up, or educating you on how Ryan compares/differs from other builders in the marketplace. For that reason, you may be paying, or committing to something that is not customary in the market. You may not add the types of features, or details to your build, that you really need/don't need. You may be paying for something now, that you can do for half the price later...

Not to say all Ryan reps are to be created equally either. I've had some very good dealings with some and some car salesy dealings with others. I do know one thing, the "slick" types, don't want you to have representation.

As far as negotiating, there usually is "some". They do not do anything "custom". Most of the plans they offer in the "affordable" tracts you are probably considering, cannot be changed in any way. They will not move windows, change light fixtures, etc. They actually dictate which light fixtures you have and if you don't like them, they suggest you change them out AFTER closing. That's not to say it's horrible, it's just a way for them to give you that bottom-line $/SF. With this Saturn approach, they don't "throw in" extras, or give you a rough in bath...

In order to get any of the "specials", ie - morning room, you HAVE to use NVR. It's not a bad deal for something like that. It's almost a no-brainer.

Back to negotiating: I can offer you this... you need to have something comparable. There is typically 1 other builder in certain markets that can compete w/ Ryan. I had a client vasolating b/w the 2. Ryan said they wouldn't negotiate, this other builder said they wouldn't negotiate. In the end, my client got a premium, walkout lot and they waived the lot premium. If they think they are your only option, you most likely won't get anywhere w/ negotiations. It all depends too on how much dirt they are moving around and how many contracts they need vs how many they "have" that month. They have numbers they need to hit.

Ryan is a good option for reasonable new construction, however, you can typically always find a better "value" in existing homes. Window treatments, driveways, landscaping - that all takes time and money. You can't typically reproduce even a newer existing home, anywhere close to the price you will likely pay. There is always transition in these newer subdivisions, which make resales available.

I would also be careful to the new build price vs what the price will be when you actually close. Most people make significant changes throughout the construction process and can add in excess of 10k to their original price...

Good luck w/ your pursuit.
0 votes Thank Flag Link Fri Sep 12, 2008
We're actually looking at a couple of the Ryan developments in the area because (according to the estimates we developed with Ryan) we can build a new home for essentially the same price as purchasing an existing home. It's an appealing option to us because we're both young professionals who are not exactly handy, which would then make any necessary renovations in an existing home pretty pricey. Based on the research that I've done on both existing and new homes, we're struggling with making a decision on what is going to be the best investment in the long run.

Figures in terms of the cost of a mortgage, interest rates, closing costs, and taxes are consistent across the board. We were unaware that by talking to a Ryan representative without a buyers' agent present essentially waives their responsibilty to pay that agent. Our willingness to walk is based on the fact that we're looking for the best possible option for us in the long-run.

Since I posted last night, I received a call from our Ryan rep regarding the tax incentive for new home buyers and that should we choose to use that, Ryan would pay some of our closing costs. I guess we're just hoping that we can negotiate similar costs as we would if we purchased an existing home. The housing market in Rochester is very stable, and so the prospect of owning a new home that is comparable to existing structures is very appealing but I don't want to enter into a contract blindly. Regardless of what type of home we buy, we expect to stay in it for many years to come and want to make the best investment that we can.
0 votes Thank Flag Link Tue Aug 26, 2008
Why are you pursuing this development? Doesn't sound like you're thrilled. Why not move on.

The bottom line is if you don't really like it - why continue to pursue?
Web Reference: http://www.tommcgiveron.com
0 votes Thank Flag Link Tue Aug 26, 2008
You should have hired a buyers agent which most likly would have paid by Ryan. Sellers and their agents know that a Real Estate agent are more likely to get the job done, and so are willing to pay their commission. Also because their YOUR agent, they have better powers to negotiate, as they know what to say, and how to say it. Most times, once you go at it alone, it's hard then to bring in a agent to negotiate, but it doesn't hurt to try.
Web Reference: http://PaulMVPteam.com
0 votes Thank Flag Link Tue Aug 26, 2008
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