Builders are negotiable in this market; larger ones, moreso than smaller. Quick deliveries can be "bargains"; only downside is the lack of customization.

I know this may sound like a pitch, but I'd encourage you to have an agent represent you; having this buffer removes the conflict of interest that a builder's sales rep experiences when trying to negotiate for a potential buyer (remember who's writing their paychecks).

With that being said, what incentives are being offered? Are there tie-in's to obtain these incentives? Upgrade packages? Does the quick delivery satisfy many of your needs and wants?

Finally, with price, there is no golden rule. It comes down to your perception of value, relative to the homes in the neighborhood. Make an offer within reason and be strong enough to walk away. They'll probably be in touch.

Good afternoon Bobby,

Have you looked at Home Depot or Lowe's numbers lately.?

Things have slowed way down because builders aren't buying product... of course, the cost of building supplies have lowered.

Builders are just like any car dealer with a big inventory ... you want to buy, and they want to sell.

It all depends on the builder and the folks that work there - builders "usually" aren't very good "people persons", they hire others for that .. but if you can get to "the builder", the man in charge, usually the actual developer, you could strike a much better deal. ... that information can be found at the city planners office if everyone forgets who that might be.

What usually happens is their rep will offer some minor upgrades, it makes most buyers happy ... your job is to get "major" upgrades.

I have friends in Ohio that got a 5% discount ... then negotiated their upgrades which included 6 Plastpro custom doors, 88 sq ft of Brazil Granite for their counter tops, and upgraded 16 windows to the Pella customs ..

They feel they did great....


-

Bobby,
You've posed a good question. and you've gotten good answers as to how builders DO negotiate.
There are some more pieces of information that a seasoned real estate pro would ask before even venturing a specific answer. That's because we have learned that there are way more factors at play then just price and location.
I saw that you asked another question a month ago that gives more insight into your situation, and that helps. You have Excellent credit, and also appear to have a good income stream (based on the numbers you gave) Can I ask if you have a reason that you do not have a Real Estate professional working for you?? A good pro ON YOUR SIDE can be worth their weight in gold to you. That means find a Realtor (who is NOT working for the builder!) and interview them. Chances are good that the builder/seller is already agreeing paying a commission-- take advantage of that by using a buyers agent. When you hire a buyers agent, they are working on your behalf and should be putting their considerable expertise to work for you to get the best deal possible.
Hope that helps
MIM HEISEY
REALTOR GRI

Builders usually won't negotiate to that extreme. They like to keep their comps up as much as possible. But as Linda stated, you can negotiate on upgrades and closing costs.

Builders typically will negotiate more on the back end with incentives and upgrades rather than lowering the purchase price. This keeps the purchase prices for the development more consistent. Ask the builder to pay your closing costs, including a buy-down of your interest rate. You can also ask for upgrades in flooring and countertop materials as well as window coverings (shutters or blinds).

HOWEVER, if the property is appraised at a price lower than the contracted purchase price, then you should be able to get the builder to lower the purchase price to the appraised value. The appraised value should include the upgrades provided in the home you're considering. I'm in CA, and we have been successful in getting these price reductions with Lennar without much trouble.

Good luck!