Home Buying in San Francisco>Question Details

Vivek, Real Estate Pro in Pleasanton, CA

do builders negotiate prices specially in this market ?

Asked by Vivek, Pleasanton, CA Wed May 15, 2013

what is the best strategy with dealing with builders spececially in a seller's market like this

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Hi Vivek - builders will not usually negotiate "price" per se - at least the listed price and lowering it. What you can do is usually negotiate your upgrades - finishes, any structural work (i.e. home, electrical wiring, etc.) if early enough in the building process to make changes, etc. They may pick up some closing costs now and again. They do not like to negotiate price b/c it sets precedent for future phases and building they do - they like prices to go up, not down...which also benefits you as a previous buyer from that project. Hope this helps. Go get some upgrades! Cheers!
1 vote Thank Flag Link Wed May 15, 2013
Hi Vivek,

The builders are just emerging from a long period of stagnation and loss. Some if them were caught with inventory at the end of 2008, beginning of 2009 and had to sell and discount, losing a lot of money. Then they had to stop building all together until last year and when they resumed the cost of construction materials went up.

Considering all these factors, many developers, at least in San Francisco, decided to build rentals instead of condos and single family homes. Some of them are building condos and in order to be profitable they need to sell a 1 bd condo in San Francisco for at least 650k.
And that is with no discounts. At most you can negotiate for a city transfer tax or an appliance or flooring upgrade. But most of time is 'take it or leave it'.

Best,
Alina

Alina Aeby-Broker Associate
Pacific Union/Christie's International Real Estate
http://www.bestsfhomes.com
415.744.4844
0 votes Thank Flag Link Mon May 20, 2013
Sadly, Oggie is right!

:0(
0 votes Thank Flag Link Wed May 15, 2013
Simple answer, no. For now, those days have passed.
0 votes Thank Flag Link Wed May 15, 2013
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