Home Buying in San Ramon>Question Details

Jodi, Home Buyer in Fremont, CA

Tessera for 3 bedroom list price is 614K and 4 bedroom list price is aroung 690K. If you negotiate how much difference will be from the list price app

Asked by Jodi, Fremont, CA Fri Jan 14, 2011

How much difference will be from the list price approximately?

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Steve Dawson’s answer

I am helping someone at that same builder site right now. They are looking at the 3 bedroom. I can't tell you what they are getting the home for though. Are you looking at a spec home (one that is already built) or are you looking to buy one and have it built? The reason I ask is because most of the time the builder will put incentives in the pot to make it more attractive without messing with the purchase price. For instance, if the home is selling for 575k not yet built, it will come with base amenities, and they will give you 20k for upgrades in their design center. (this is just an example) Then you will say, ok, I will pay your 575k purchase price, but I want 50k in design center credits. Or, I don't mind the base model, but I won't pay 575k, I will pay you 550k.

So there are different ways to negotiate your final price. If the home is already built and all the amenities are in the home, then it is simple. The builder is really wanting to sell these homes, so go in at a price you are comfortable with. I can't tell what that price is. You have to be okay with losing the home when you are negotiating. That's where your power comes into play. I can't suggest where to start bidding at because you are not my client and it becomes an ethical issue. But the rules are simple. Go in playing hardball, but not too hard, be willing to lose the home, and don't let them push you around. Know that they need to sell the home to you more than you need to buy it. Also, know that they are being very reasonable with their pricing right now.
Web Reference: http://www.BrokerDawson.com
1 vote Thank Flag Link Fri Jan 14, 2011
Hi Jodi,

It is hard to tell you how much lower from the list price the builder will take. As I had suggested in my last answer to your question, please make sure you take an agent there who has experience dealing with new communities and has negotiated with builders before.

How much they will go down on the price depends on supply and demand. So you need to see how many homes they have released in that phase and what knid of demand they are seeing. If there are too many buyers and not enough homes in that phase, they may not have a need to negotiate too much on the price.

I was looking for a home in Gale Ranch San Ramon in the year 2000. It was a lottery system. They would release 8-10 homes in each phase and there would be 50-70 buyers. I tried several times, but my name did not come. I ended up buying a new home in another city.

Please let me know if I can help you negotiate with the builder. In one instance I was able to negotiate $80,000 lower than the asking price in a new community.

Meena Gujral
0 votes Thank Flag Link Tue Mar 1, 2011
Jodi ... there is a lot of dancing going on with the agents. First, consider the input from the local agents only. By national definitions in Central Contra Costa County we are in a VERY strong sellers market with very low prices compared to a few years ago, but it is a sellers market. That said, in our market there is a strong divide between new home subdivisions and resales... few agents work in both arenas ... and few buyers also.... and you are asking your question to agents who work in the resale market not the new home market.

The challenge is to come up with comparables for the new home sales. Your agent, if you have one and you should, may have the expertise to provide you with the comps for the properties you are looking at but be aware of two things: 1) relatively speaking there are not going to be a lot of new home comparables to look at, and 2) if you are working directly with the agents at the subdivision sales office ... 99% of the time you have no representation... that agent represents the seller only ... you are not the client, you are the customer and there is a huge difference.

Good luck and if you need any further guidance don't hesitate to contact me or one of the other local agents.

Steve Curtis
Broker/ Owner
Windermere Bay Area Properties
0 votes Thank Flag Link Fri Jan 14, 2011
Hi Jodi,

As the other responders have mentioned, it depends. Price is certainly an important topic, but it's not the only one you should be aware. Here are a few more considerations to be aware of when buying from a Builder: http://docs.Steven-Anthony.com/BuilderRealtorAgent.pdf

Best, Steve
0 votes Thank Flag Link Fri Jan 14, 2011
Anna's right: "There are no set standards as to how much below list price to offer". Also, please keep in mind that there are several ways to add value to the transaction besides lowering the price.
0 votes Thank Flag Link Fri Jan 14, 2011
Where is your buyers agent who is the professional address all these questions.

Each property stands alone based on many factors

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Fri Jan 14, 2011
There are no set standards as to how much below list price to offer--what is your agent advising...in order to determine a value, review comps with your agent, recently sold similar properties in the immediate area--then make a determination as to a fair offer--after reviewing the data, take notice on the differences in price for a three bedroom, verses four.
0 votes Thank Flag Link Fri Jan 14, 2011
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