D, Both Buyer and Seller in 75001

New townhome lowered price is $25k below city appraisal, can I put in offer at 20% below new asking price?

Asked by D, 75001 Fri Aug 1, 2008

townhome is located in Dallas, TX in a very desirable neihborhood. i'd also like to use the builder's mortagage company. Will this get me a better offer?

Help the community by answering this question:


Sure, you can offer anything you want, it is just a question if you will be able to negotiate a contract with the builder. The only thing you will receive from using the builder's mortgage would be the title policy at no cost and possible no points for the loan origination fee. If you are not represented buy a Realtor you should be for your protection, after all it does not cost you anything (they have a commission fee already figured in) or hurt your bargaining power.

Craig Laughlin
1 vote Thank Flag Link Fri Aug 1, 2008
You have to ask the builder what incentives you get if you use their Mortgage Co. You should ask another lender that is local just to be sure. Let me know if you need any help. I have been selling New Homes for over 11 years.
2 votes Thank Flag Link Fri Aug 1, 2008
Thank you all for the advice. You've given me a lot of insight on what diretion to take.
I'm certainly not expecting the 20% below offer to be accepted, but I would like to nudge the builder's price down more if possible. I agree with Hawaii Guy that it is worth a try. This is one of the last units (3 left) in their inventory and they were scheduled to close out the community about 6-7 months ago.
1 vote Thank Flag Link Sun Aug 3, 2008
That's a typical offer the builders use to get you to spend more money with them. They may make more off the mortgage than they do off the home sale. If it is new construction the county appraisal is never a good judge of value...remember they've likely never seen the home. I like selling condos and townhomes and know many of the developments well, so call me and we can discuss some good options for you.
Web Reference: http://www.teamlynn.com
1 vote Thank Flag Link Fri Aug 1, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
Hi D.
I was just there this weekend and I think I know the unit you are talking about. They only have the 2 units that are ready now, their inventory isn't high. The drop is nice but since they are not going to be sold out for about 6-8 months, they are using them as models to show prospective buyers.

The only incentive they pay when you use their mortgage company is that they pay the title policy which is about 1700 in this case. I think they will come down in price more but probably not the 20% you expect.

If you are not working with a Realtor, I will be happy to represent you. I know the area and the product very well. My services don't cost you anything.

Web Reference: http://www.sumnerrealty.com
1 vote Thank Flag Link Fri Aug 1, 2008
City appraisal is not accurate. You need a comp based on the recent sales and current listed data and based on that to make your offer, so before I know the area and the market I can't advise you.

I would be glad to help!


Viktor Taushanov
Coldwell Banker Residential Brokerage
972-758-2045 Direct Line
214-697-6797 Cell
0 votes Thank Flag Link Sat Oct 11, 2008
City appraisal and true appraisals will always vary. You need to have an your agent comp the property value work with the builder. Difficult to state 20% below asking price you dont want insult the Builder. Builders mortgage companies COULD BE in some instances high. I am Dallas real estate agent and loan officer notify me if I can be of any further assistance.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Mon Aug 25, 2008
It appears that you are looking for a great investment. I specialize in properties that have been discounted 15-25% from their actual value. I work with a group of investors. and receive 5 to 10 properties every day that are discounted just like this. Some are new construction, some are not. Some need repairs or upgrading or rehabbing. Some do not. Rather than going off the city appraisals (which are not a reliable source of value), I pull the actual comps in the area to show what other similiar properties in that subdivision have sold for recently. This tells you the TRUE market value of the home you are considering as an investment. So, if this townhome doesn't work out for you, please let me know if you would like to see what other discounted properties I have currently available. 214.994.4742 Amy.Williams@Habitat4Hire.com.
0 votes Thank Flag Link Mon Aug 18, 2008
Hope you find what you are looking for. D if you don't have an agent and want to save a few thousand more check out my website.
Good luck and have a great rest of the weekend.
0 votes Thank Flag Link Sun Aug 3, 2008
Obviously you've been following this listing and you've done some homework. The question I have for you is do you want to buy a town home or do you want to learn a lesson? If you really want to have a new home you need to look at the total picture here. The price was just lowered $25,000!!! You may get the builder to throw in upgrades but as far as getting the property for an additional 20% off, your chances are pretty slim. I am not in your market so I don't want your business, I'm just trying to get you to look at this from another direction.

Carol Pease, ABR, CRB, CRS, e-PRO, GRI
0 votes Thank Flag Link Sat Aug 2, 2008
Sorry, Hawaii Guy - but the thumbs down has more to do with you encouraging a lowball offer be submitted in a market that wasn't part of the real estate bubble. If we were listing homes, even new homes, 20% above where they should be selling, we wouldn't be getting any showings. We have no problems with attorney's reviewing contracts, so long as they are licensed to practice law in the state where the transaction is taking place and real estate is their specialty. I wouldn't want my podiatrist performing brain surgery, either. If the neighborhood in Dallas is so desirable, why the reduction in price and what makes you think there is 20% more on the table? You need to get with a local real estate agent and discuss this townhome. I have never found it more desirable to use the builder's mortgage company. Tune in on Saturday at 9am for Rodney Anderson's CTX Mortgage Show and call in to ask him if it's better to use the builder's lender. Rodney is the #1 CTX Mortgage loan officer in the nation. 105.3 fm. He won't steer you wrong.
Web Reference: http://www.judgefite.com
0 votes Thank Flag Link Fri Aug 1, 2008
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