Your Realtor should be negotiating a discount for the Lot Price as well as the Home Builders price. We know what the areas of dealing with both should be. We can then get extra perks thrown-in as we get further into the deal. The Ambassadors at Lakewood Welcome Center will tell you one thing but shoud actually hand you off to a preferred Realtor. Best way is to find good Realtor, ask questions and let them take you through the Infromation Center. Please review our website at: http://www.jimsoda.com
Jim Soda 941-809-7759
Web site: http://www.JimSoda.com
Your Real Estate Resource for the Greater Sarasota-Lakewood Ranch.
Jim@JimSoda.com
Prudential Palms Realty - Fine Homes International

I gather you are thinking about dealing directly with a builder and you are trying to figure out what to offer, right? I agree with the other's comments and I also agree that having an agent looking out for your side of the deal is a very good idea, especially since it costs you nothing and may save you money, a lot of time, and headaches you don't need. However, to answer your question in a general way, I'd try offering about 10-15% off the asking price. If you get laughed out of the office, so be it...you can always come up. If you are really bold, maybe try 20%! With some of the very highest priced homes in LWR I know some offers are as low as 25% off. You simply won't know until you try. I think a reasonable purchase price would probably be around 5-10% of their asking price. Again, this is the sort of situation where local knowledge (i.e. a Realtor) is very important to you. One bit of advice, talk to your lender (preferably a local lender) before you begin and have a pre-approval letter supporting your offer ready to go.

In today's market, there are so many discounted previously owned homes that I don't believe a builder can compete. However, if you want a brand spanking new house built to new codes and the builder is reputable and has no liens in site, and the neighborhood is built out, then compare that house with others like kind and for sale in the same and surrounding neighborhood. Some builders here in Lakewood Ranch are still much higher priced than homes being resold that they built 3 years ago. Keep shopping! Get help from a good realtor!

As you can see from the answers so far, there's no set rule. Every builder is different. Some won't negotiate on the price, but offer incentives instead. And it all depends on how much room the builder has to still make a profit. Ideally, you can find one who is willing to really negotiate, but in my experience, I have yet to find one that would.

Katrina I work with a builder and the other answers to your questions have alot of great information. In thinking about your question, I wonder what you mean by discount. Builders who build a spec home are usually looking to build a home and make money to pay for the building and a margin of the build as there profit to them. A builder can offer incentive like Ben talked about to sell the home but the bottom line is the money that is in the home to what can be made off the sell. If you are looking a purchasing a spec home from a builder, the amount paid for the home and incentives are all negotiable items that a REALTOR can help you with in your transaction.

Katrina,
There is no real right or wrong answer, you should have a qualified Realtor in your area help you with the nuances of dealing with a builder! Some things to consider are the market conditions in your area, how long the spec house has been on the market, and the real bottom line issue is this the house you se yourself in! If you would like I can get you a qualified Century 21 Realtor in your area to help cut through the endless negotiations that are involved in a transaction of this type. Give me a shout on my mobile 518-542-6835.

Hi Katrina, we work with many builders, listing and selling their "spec" home inventory. What the builder is willing to come off on price and the incentives offered will vary from house to house. This is due to construction costs, financing and time on the market. Sometimes longer market time works in reverse for the discount to the buyer as the builder may be going upside down due to the interim interest already paid on the construction loan.
Whether you are building from scratch or buying a "spec" home the advise and expertise of a Realtor will benefit you greatly. There are other considerations when buying New construction that must be weighed. Age and location of the neighborhood, closing costs(who will pay what)- It is not a given that the builder will concede to pay buyers closing costs(title, loan costs) even when some of the costs are "typically" paid by the seller in some areas.

Hi Katrina,

It depends what you mean by reasonable discount. It could be upgrades, closing costs and of course what is the sq. ft of the house, and who is the builder?

If you can provide that information, it will be easier to answer your question.