Any offer is that, an offer and if I were listing the home you offered on I would encourage the sellers to counter and see what happens. You never know and you said what your initial offer will be but only you know what you are willing to pay.
The feedback you have received so far is good, consult your agent, look at the sale comps and depending on other factors in your offer maybe you will come to agree on a price and open escrow. I am seeing sales prices of right around 3 - 5% off the asking price of resale homes when the offer was written. This information is for resale homes.
The Grove are new homes so typically the seller (the builder) won't negotiate their price much if any at all. They may give you upgrades of a certain amount and maybe you can get a deal of some kind by using their financing. If you offer is for one of the new homes in Phase 2 then just ask the new home sales agent in the sales office, they are usually pretty up front about their pricing. They figure if you don't want to pay it maybe the next people will. All about supply and demand, only a few new houses and a lot of buyers want a new house.
Good luck with your home search,
Brian Wilson, Realtor
The answer is always in the question. I assume you are not working with an agent who can negotiate on your behalf. Builders have costs they want to recoup in a sale. New homes generally demand a higher price as they are move in ready. Are you aware of the prices Grove homes have sold for? The prices for the model you want to bid on?
The builder will decide what price he wants...if homes are moving slowly he may deal with you. Are you coming in at a number that is your final offer or are you hoping to have a counter offer or two? Strategy is everything.
Also are you pre-qualified versus pre-aprroved or are you hoping to obtain financing arrange by THE GROVE? IF you are pre-qualified which essentially makes you an all cash buyer and an appealing prospect to the seller you may be able to negotiate on the price to your advantage.
It is your money and an offer can always be made, you have to decide what your desired outcome is to be. Is this the home you must have, or are you willing to wait for another that better fits your budget?
Again a good agent can help you walk through these decisions.
So, since March they've reduced the price from $650K to $599K for this model & at the moment have 2 in escrow. One that went under contract Aug. 7th & the other July 7th.
They have 3 others that look like they're ready, they're releasing them in phases. If they had 10 in escrow, I'd say you don't have a chance, but that's not the case. If you can contact me, I can work with you & give the builder a compelling report as to why they should take your offer.
Realtor Since 1996
Main Street Realtors
Broker - We Help-U-Buy Realty
No I wouldn't consider that a low ball offer... Let me know if I can write it up on your behalf.
Scott Bingham - Beach Cities Real Estate