Home Buying in Tucson>Question Details

William Gord…, Home Buyer in Tucson, AZ

New INVENTORY Home Discount/Reduction Question

Asked by William Gordon, Tucson, AZ Wed Jan 2, 2013

I have been looking to purchase a home for over a year.

We have just found a new build that is an INVENTORY home. It has been completed for 3 months now. Per the spec sheet it has 46k in upgrades, 7k lot premium and is listed at 291K

My question is what discount is available for a property like this?

I will be a conventional buyer with 25% down and have a pre-approval letter in hand.

I am seeing on the net between 10-20% off list price. I have a realtor (who has done new homes) and they say list the the price they want to sell at.

Recommendations?

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Answers

8
Michael Shiner, MBA’s answer
William,

Every transaction is unique. Each home builder has different protocols which are also based upon the specific subdivision. Most importantly, negotiating a discount on an inventory home usually comes down to the builders motivations: end of month, quarter or year quotas they are trying to meet. Best of Luck!
0 votes Thank Flag Link Fri Jan 4, 2013
All home builders hava a bottom line they won't go under. Most do not have 10-20% to give off, especially if it is a spec home. That said, it always good to get them an offer to see what they would consider. If it doesn't work for you then find another. Your Realtor can run the comps in that subdivision and see where they are running. That is the price you will need to consider plus any additional upgardes that are in the home. Good luck.
0 votes Thank Flag Link Thu Jan 3, 2013
We represent a lot of homebuyers purchasing Inventory homes. We have never had a buyer pay list price. There are a lot of options and variables based on the location and the builder. Ask your Realtor to run a comp. report showing similar homes in the neighborhood that have sold in the last 3-months. Sometime builders would prefer to add extras to the home instead of discounting the price, maybe some landscaping, a water softener or washer/dryer. Good luck.
0 votes Thank Flag Link Wed Jan 2, 2013
Work with your agent, since you have one. Many new builds are not offering the same discounts as in the past as the market has picked up, including for new builds.

I suggest your Realtor do the research & work with them. Best of luck.

Spirit
0 votes Thank Flag Link Wed Jan 2, 2013
I would never step on anyones toes, so since you do have a Realtor I would ask him or her. If their is anything I can do for you after you have spoken to your Realtor I will be more then happy to answer those questions . Just send me a direct message.
0 votes Thank Flag Link Wed Jan 2, 2013
Hi William,

You hired a Realtor to help you with your home purchase, so it's only proper for you to get your advice from your Realtor.

Best regards,

Donna Moulton
Associate Broker
Tierra Antigua Realty
http://www.SweetDesertHome.com
0 votes Thank Flag Link Wed Jan 2, 2013
Although inventory is at it's lowest level in years, new home builders have still be discounting, epecially on homes that have been completed and is aged inventory. Good luck.
0 votes Thank Flag Link Wed Jan 2, 2013
With Re-Sale homes, there is no COST available to use in the firuging:
The house may have been built 10-20-30 years ago, and the cost to build it would be nonesense in today's market.
No so with a new-construction: The Builder knows what it cost them to build it, and they know what margin they need to make.
You can bet that the LIST PRICE is padded a little, maybe more than a little.
But you can also bet that they will not agree to a Low-Ball offer; they can sit on it while it appreciates.

The bottom line is; What is the house worth to you? How much do you love it? How closely does it meet your needs?
Try not to be emotional about it.
Yeah, sure!

Good luck and may God bless
0 votes Thank Flag Link Wed Jan 2, 2013
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