Lisa, Both Buyer and Seller in Cleveland, OH

Potentially looking to buy a Ryan Home in Medina. Question on offer.

Asked by Lisa, Cleveland, OH Tue Mar 3, 2009

We have already met a few times with the sales representative and have the make (Dunkirk) and upgrades already selected. We dont have a realtor because we went there first without one. We made an offer - pay base price for the home ($189,900) and asked for assistance with closing costs (which total around 5-7K) and $10,000 towards upgrades (we have 30-40K selected out in the price sheet). First she said we cant, we are selling at our lowest. We were bold in what we were asking and she made a phonecall in the other room. Came back with the option of 1 point and 1,000 in upgrades or no point and 4000 in upgrades. Of those 2 we think the 4000 towards upgrades is better. An hour later after we left we called and said if they gave us both - the 4K in upgrades and the point - we would move forward with the sale. They said they cannot because they have to offer it to everybody now. Is this true and is this even a good deal? I feel like they can so much better...

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4
Jeannine Dyer, Realtor’s answer
Hi Lisa,
What the public is not aware of is that, you need protection even when it is new construction. The sales representatives at the builders office, is representing the builder and it is their job to make the sale. I would suggest looking at other builders and comparing. Some builders have everything inclusive, Ryan will charge you xtra for every addition. I have sold many of their products along with many other builders. I understand that you went to the builder without an agent, However, if you told the builder you had an agent they might honor that agent. because the builder likes to do business with agents and they market us for our business. Sometimes when you buy directly from the builder it seems like a good deal - only to find out later that you paid more than your neighbor. They offer incentives to get you to purchase and often times you go to their lender. That might not be the best way. My experience is that yes, Ryan does offer incentives, but they change. They may offer a morning room for a given time, and then another time they may offer other items/upgrades. If you have not locked yourself into the deal, I would be interested in meeting with you. If you have further questions, please feel free to contact me. Otherwise, I wish you much success.
0 votes Thank Flag Link Thu Mar 5, 2009
Hello Lisa,

Just because they gave you the 4k in upgrades and 1k towards closing costs would not mean that they would have to give this same deal to everyone. Different deals for different situations are done everyday, by Builders, Realtors, Buyers and Sellers all over. Everything is negotiable in real estate. I would be leary of this and would consider other options. Unfortunately, they might not be the right builder for you and your family.

I would suggest that you consider working with a Realtor that can look out for your best interest, whether it be with a Builder or a resale. There is too much at stake for you and your family and having a Realtor represent you will not cost you anything.

I hope this helps.

Please feel free to call me or email me at david@wakemanrealtor.com for more assistance.

Sincerely,

David Wakeman
RE/MAX Classic
(440) 212-5007
0 votes Thank Flag Link Tue Mar 3, 2009
Rita,
To answer some of your questions and which might help others to offer comments too, the development is still really new - perhaps close to 1/4 complete. Therefore, there are no resale homes up right now - they are all brand new. We plan to stay in this home for a long time - to raise our family. Upgrades that we have selected do not add to the square footage but they are more 'structural' I guess (e.g. large island, 9' ceilings, elevation of exterior, and the rough in's and wiring) - we figure we can do flooring, counters, fixtures, etc. on our own in due time. Right now we are looking at a 2400 sq.ft. house at ~ $84 sq.ft. I think that is pretty good...
Thank you for your reply.
0 votes Thank Flag Link Tue Mar 3, 2009
Hi Lisa,
Do you know what resale homes are going for in that developement? Resale homes that may be near the same square footage with like features? That would be something to find out as close to new as possible. Is the builder near completion of the developement? That makes a difference, as they may be more negociable on prices. Are you planning on staying in the home a long time? I ask because upgrades are usually very difficult to recoup your money on. Builers are showing a trend of cutting their base prices dramatically then buying down their own financing rate (make sure it is fixed and not ajustable) and that allow's the buyer to finance premium priced upgrades, which can be done for less later. If an upgrade is adding to the squre footage that may be attractive, Bottom line is when you build you pay the most per square foot. Resale is mostly always the huge bargin. Again comp out what you are paying per sq foot!!!

Good luck with your venture. If I can be of assistance to you and yours at anytime just give me a call
at 440-227-4461 I am always ready to help
All the best,
Rita Legan ASP Realtor and eagent
0 votes Thank Flag Link Tue Mar 3, 2009
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