Vish,
All these conditions need to be negotiated upfront, before you sign the contract.

Harpal Harika

Vish,

The question you ask is dicey. Generally speaking the "comparable sales" that the builder uses are their own sales activity. Generally they do not make price adjustments until they have their existing buyers in the pipeline locked . In situations where they put unlocked buyers "at risk" by moving the prices around they have consessions thay can make (They are tricks) to support their value and still close the unlocked pipeline.

For example, lets say they move reduce the price 20k as you suggest. They in all likelyhood would offer you a mix on incentives to stay in contact. $5000 price reduction, and 15k in backyard upgrades. Since the cost to them on the backyard is minimal and can be done late into construction (and factoring they real cost is 1/3 of the retail cost) it becomes a win win. This is an imaginary example but it is representative of what they can do.

Hi Vish, as Vickie states, it depends on the written agreement and the builder's policies.

While a Buyer can "go it alone" when buying from a Builder, it is much more prudent to have your own Realtor representation (provided they have Builder experience). Your question is one that should obviously be asked and confirmed before signing a purchase contract.

Here are a few other considerations to be aware of:
http://docs.Steven-Anthony.com/BuilderRealtorAgent.pdf

Best, Steve

Hello Vish,

It depends on the written agreement and the builder's policies. I had a situation recently where there was a price reduction on that model home prior to the move-in date. The builder did pass along the reduction to my buyer. So, under the right circumstances it can happen.
Kindest Regards,
Vickie Nagy
Realtor® - ABR, CRS, e-PRO, GRI, SRES
Specializing in "GETTING YOU WHERE YOU NEED TO BE"
(925) 407-7987 cell
http://www.VickieSellsHomes.com
http://www.BestTriValleyHomes.com
Keller Williams, 760 Camino Ramon Suite 200, Danville, CA 94526
CA DRE License #01363932