Home Buying in Boykins>Question Details

SIS, Home Buyer in Boykins, VA

We found a new house, but it is pass our budget by about 70.000.00 But the builder has not sold it and it was built last year. How much do you?

Asked by SIS, Boykins, VA Mon Mar 8, 2010

think he would go down?

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SIS- RULE #1 - DO NOT OVEREXTEND YOURSELVES!

What's the asking price?
$70,000 = $374/month (5% 30 year fixed rate)

You said "WE" found a new house.
Do "WE" have potential for increased earnings in the next two or three years?
If that's the case you may want to negotiate the asking price with a Seller-Funded 3-2-1 Buydown. Sometimes Builders are more inclined to offer incentives rather than reduce their asking price.
(It ticks off the Buyers who previously bought in the development at a higher price.)

You can plug in asking price, and calculate the savings provided with this strategy here:
http://www.321advantage.com/buyers-calculate-your-rate

Good luck with your negotiations!
Remember: If you cannot afford it...walk away.
0 votes Thank Flag Link Mon Mar 8, 2010
One other point to consider is that if the Builder is still building in that community they have to "protect" the appraisal values so even if they wanted to sell it for a major discount to you it could hurt their other sales in progress and they could lose money on those closings.
0 votes Thank Flag Link Mon Mar 8, 2010
All good points from prior posters, the only way you will get your answer is if you begin a dialogue with the builder. If you are using the services of an agent, then be sure to have the agent initiate the dialogue. A rule in new construction that I believe is consistent across state lines is that the agent relationship will only be recognized if she/he introduces you to the home.

To amplify, there are so many good buys now, and great incentives with the Tax Credit and low financing rates - both of which will soon end. So get your answer on this one so it doesn't stall you or slow you down. If it is a go, great, if not, forget it and redirect your attention within your budget parameters.

Good luck,
Jeanne Feenick
Unwavering Commitment to Service
Find success at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Mon Mar 8, 2010
SIS-builders will negotiate on the price of their homes HOWEVER in many cases they require you to use their lender & title company. What you may find is that they would come down in price, depending on the margin of the home, however by using their lender the monthly payments may exceed what you can afford.

There are great deals on homes available. Instead of focusing on a home that is outside your qualification limit look seriously at the ones that are. Being "house poor" does not leave you any cushion for emergencies or to enjoy other things you like to do.
0 votes Thank Flag Link Mon Mar 8, 2010
Sis first question is why are you looking at homes 70,000.00 over your budgeted price. My second question is what is the current price of the home?
If the home is priced at 2 Million the builder should be able to come down 70,000.00, if it is priced at 300,000.00 I doubt that they would be able to drop it like that.
Most builder get loans to be able to build homes and the drop that they would need to do at a 300,000.00 price would not normally be enough to pay off their loan.
The second thing that you will run into is what stage is the developement in. If this is the last lot or near the end of construction in the developement the builder may be more likely to drop price. If their are many lots left the builder needs to worry about future appraisal issues. If they sell a 3000 square foot home at 250,000 instead of 320,000 evry appraisal for 3000 square foot homes over the next 6 months will show that home as a comparable and the appraised value of future sales will be reduced. This could cause sales problems for the builder on newly built homes as they may not appraise for contract price.

By the way I had buyer clients sign with a builder on the last lot in subdivision Sunday night. We have been negotiating with a builder for 3 weeks. With the nuggets of knowledge that I just gave you we were able to save about 50,000.00 to come to final build priced at 310,000.00.
The key to saving the most money with a builder is to purchase one of their last lots.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Mon Mar 8, 2010
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