Builders are usually fine with a buyer bringing or sending in his Realtor after
having already made contact. I live in Carmel and would be happy to
Thanks to Scott for mentioning the appraisal standpoint. Just such a problem
arose in a nearby Carmel neighborhood a couple years ago. Not only were the
recent sales affected, but the home owners were up in arms because of the
affect on their home values. Those who had to sell were forced to accept
offers below what they had paid just a year or two prior. That builder learned
his lesson and is no longer flexible on price. He offers extras or buys down
the buyers' points instead.
Have a great day, everyone.
I have run into several builders willing to negotiate very little on price. A lot
depends upon the community. For example, if a builder is ready to close out an
area, he is more willing to deal on price to move the last few homes. One builder
I know had a community that had been a strong seller, but the resale market there
took a hit in the downturn like so many others. So, he lowered the price of all of
his homes in that community to what he claimed was his bottom dollar and would
take no less. Another builder I know has lost several of his best reps because his
refusal to negotiate has lost so many deals and his reps can't make a living if they
However, even some price reduction averse builders are willing to add extras
instead of drop price.
Remember, the cost of building materials is steadily climbing due to the increasing cost
of materials. Lots of price pressures have come to bear on material costs, including
competition for building materials from India and China.
You need an agent who will search out all the builders in the price range in which
you want to stay. Get an agent working for you. It won't cost you any money.
Most, if not all, builders pay a buyer's agent commission out of their marketing budget.
I have a lot of family in Nashville and Franklin TN. Where is Carmel? If you were
coming to my Carmel, I would be happy to help you.
Prudential Indiana Realty Group
The simple answer to your question is no, it is not normal for a builder to hold firm on the price of a spec home. Without knowing specifics, they may have just lowered the price significantly, and a few builders do drop their prices and offer a bottom line price. If you haven't purchased your home in the Carmel area yet, there is some good news...This is the BEST TIME of the year to buy a spec home as builders do not want to carry the inventory over into winter. I know as I was a very successful new home salesperson in Indy for over 10 years. I am attaching a link to a blog I worte on buying a home from a builder which has gained national recognition. I hope it helps...and if you are still in the home buying market, I would love to help you!
Certain price points in Hamilton county are in high demand because of market dynamics - Since the 2008 economic meltdown, many developers and builders have been forced out of business due to tight lending (banks reluctant to lend to builders and developers). Solvent builders have been snapping up developed lots in key areas at substantial discounts. Many builders are using their own cash to put up specs, thus have a tendency to stay firm on the price. Much of this has to do to the fact that the buyers are moving down from large expensive homes into smaller footprint homes. Conversely, people moving up from apartments or their parents homes are snapping up existing inventory in the $300 k range. Also keep in mind that there is about a 18 month to two year lag time for a developer to take raw land to a platted buildable lot. There is another 18 month to 2 year time interval for the builder to turn a developed lot to a move in ready home site. Finally , with mortgage interest loans at all time lows combined with the previously mentioned criterion and you can see why new inventory is down and builders appear to be more firm on price these days.
However , there are deals to be made as everything is negotiable. Many buyers do not realize the value a Real Estate professional adds to the new home purchase. Almost 80% of new construction home purchases are made with a Realtor representing the buyer. Studies prove that buyers get more house and/or upgrades at a better price when being represented by a Realtor on a new home purchase. Many buyers are simply not aware that they can have a Realtor represent them in a new home purchase. About 30% of my business is comprised of new home purchases as opposed to existing home purchases.
FC Tucker Company Inc.,
317 508 9815
Re/Max Legends Group
Are you ready to move?
Builders are willing to deal on price and more likely if you are represented by a Realtor that has brought them business before or could bring more long term. Most of their pricing models have % spread built in to cover representaiton. As with any large purchase, espaically your home, solicit the services of a professional!
We represent buyers and deal with builders all the time and we never pay full list price. If we do pay a higher price, then we are able to negotiate additional options that create enough of a discount.
Let me know if you need help!
REMAX Ability Plus
317-517-6585 Cell #
Choose a good agent who can negotiate some upgrades for you.
I have made deals with builders who would not come down in price but gave a $20,000.00 incentive to purchase ,,,, buyer used it in upgrades ... sometimes the builder has great financing, you can always ask them to pay for closing costs ....
Best of Luck
Helene M Moore
Windermere Prestige Properties