Home Buying in Wesley Chapel>Question Details

Ron spandet, Home Buyer in Wesley Chapel, FL

can i negotiate the price of a new construction home?

Asked by Ron spandet, Wesley Chapel, FL Mon Apr 2, 2012

We are considering purchasing a new home with Ryland. Was wondering if anyone has any insight on being able to negotiate on the price.

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Jason Gorton’s answer
You can always negotiate. Remember that everyone in the builders sales office is representing the builder and their interests. Even if they are your sales agent helping you design your home and pick upgrades.

I recomend having a buyer's agent that can assist you with comparable sales and the negotiation process. If that is not the route you choose, the more information you can arm yourself with the better. Be sure to get comparable sales of similar homes and factor in upgrades.

Best of luck!
0 votes Thank Flag Link Mon Apr 2, 2012
how do you hire a buyers agent and is there a cost
Flag Mon Apr 2, 2012
Hi Ron!

There may be a bit of wiggle room.

Usually they will add incentives or help pay with closing costs.
0 votes Thank Flag Link Mon Apr 9, 2012
You can try to negotiate the price, but a builder who is planning on continuing to build in the subdivision will not negotiate price. The reason is if you are buying a 500k property for 450k, the new appraisal and comp standard for that plan is now 450k and the builder will never see the 500k level again. We are handcuffed by the rules set forth by our government and cannot have a sale! (Thank Obama) If we want to sweeten the “deal” we basically have to “hide the money” aka upgrades from the appraiser and the lenders. Items which can be upgraded since it is much harder to determine value are flooring, electrical fixtures, upgraded paint, better insulation and better hvac equipment. We cannot lower the price, give away free sq. footage or add a garage when we do this we are having a going out of business sale in this subdivision since we cannot recreate the product for 450k and stay in business.
Picking a custom home builder is a lot like picking a realtor®; you should interview several builders before making a decision. Do not solely rely on a referral from an agent! Do the work yourself and interview several. Here’s a short check list of questions to ask:
1) Ask for current client referrals, 3 should be no problem & follow up with each regarding quality of the home and how well the builder did in regard to warranty work after the sale.
2) Ask if the builder is willing to do a cost plus contract this will save you money if the builder is ethical and doesn’t try to steal.
3) If you are obtaining financing ask about construction perm loans, these are one time closing loans and usually save the customer about 2,000 and may also have a tax benefit for you. It also allows you to see all the bills and control all the money.
4) Talk with the builders bank make sure the builder has the resources to complete the project
5) Do a basic background check on the builder look for items such as liens, bankruptcies, lawsuits different company names they are an officer in that are now insolvent and in the same industry.
6) Check with the local home builders association for a list of builders in the area
7) Energy cost are going up and the trend will continue pick an Energy Star home builder and have the home certified as an energy star home this will save you money over the long term, add quality to your home and help the resale down the road. For an energy star home expect to add 2-3% to the price of the home.
8) Ask to see a written copy of the home builders warranty program.
9) CONTRACTS- usually not a big deal and all 3 types work well the question is getting the best deal for you. The 3 types are: Realtor® provided (these protect the interest of the agents & brokers), builder provided (these protect the interest of the builder and usually provide more detail in regard to dispute resolution) home owner provided (these are drawn up by your attorney and favor you in the event a dispute arises) many times a builder will want to use their contracts, it’s usually fine just make sure your real estate attorney reviews the document before you sign.
10) Have fun!

That’s your top ten list! Good Luck!
0 votes Thank Flag Link Tue Apr 3, 2012
WITH THE RIGHT REALTOR AND DUE DILIGENCE, YOU CAN NEGOTIATE A NEW CONSTRUCTION HOME. i HAVE DONE THAT NUMEROUS TIMES. THE LAST ONE WAS ABOUT A $25,000 SAVINGS FOR THE BUYER.

HOPE THIS HELPS.

BILL SZYDLOWSKI
0 votes Thank Flag Link Tue Apr 3, 2012
Hello Ron,

Price is negotiable as are closiong costs paid by the builder as well as upgrades. I have extensive experience working with new construction and would be glad to speak with you further about your concerns. Please feel free to contact me, 727-644-7541 to discuss further.
0 votes Thank Flag Link Mon Apr 2, 2012
While the opinion below is that you can negotiate price with a builder - I find they are more willing to give upgrades or closing costs more than any significant reduction in price. For every 10K in price you may receive $50-$60 in reduction to your monthly payment. Try asking for a washer and dryer or fridge, upgrades to interior or all your closing costs covered. These are items that can save you more if you put them into the price of the home.
0 votes Thank Flag Link Mon Apr 2, 2012
Ron, yes you can negotiate with a builder. As mentioned herein, the builders agent is working for the builders best interest. I would suggest working with a buyers agent to represent you and yours. There is no cost to you for this representaion. Ryland, along with quite a few other builders are part of a program with Prudential Tropical in which I have been certified as a new home specialist. I have gone through the same training as the builders agents and therefore know how to get my biuyers the most for their money. If I can be of any service to you please do not hesitate to contact me. http://www.DanTurnerRealtor.com
0 votes Thank Flag Link Mon Apr 2, 2012
Yes. You can negotiate the price of new construction, but you need someone to represent your best interest. The builders Representative is an employee of the builder and they represent the builders best interest. Builders today are offering fantastic deals due to the large inventory of homes for sale.

All the best,
Gary Geer

http://www.ggeer.illinoisproperty.com
0 votes Thank Flag Link Mon Apr 2, 2012
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