Home Buying in Allen>Question Details

Kashif Masno…, Home Buyer in Texas

i am looking to buy a Highland home in Starcreek 50s. The builder is not negotiating on the price at all. Is it normal?

Asked by Kashif Masnoon, Texas Wed May 4, 2011

i am looking to buy a Highland home in Starcreek 50s. The builder is not negotiating on the price at all. Is it normal?
This is in the new phase of the property.

Help the community by answering this question:



To answer your question, no, it is not typical here in Texas. I just worked one for my buyer at Starcreek and we had room to negotiate. I am a Highland owner. Highland is a reputable builder and typically great to work with. If you are not represented by a buyers agent, consider the fact that you may be at a disadvantage. We have access to data that may help in the negotiation, help you make an informed decision, plus consider other factors, and the future impact for resale in this community. My team can also show you other homes in the community so you can compare and maybe get a better deal with a preown that is still relatively new and share builder incentives that may be available.

Jamuna Thill, Keller Williams, Plano
(972) 814 3682
1 vote Thank Flag Link Thu May 5, 2011
Builders are very set in their ways. They know better than most sellers where the market is and are offering something special, a brand new house. They also have a huge disincentive to reduce their prices, as soon as they do and your sale closes, everyone else will see what you paid and want the same discount.
A strategy I suggest with new construction is to request upgrades, closing costs or both. This allows them to maintain their public pricing but still provide and incentive for you to purchase. For example, if on paper you pay the list price, but they throw in $5000 in upgrades and $5000 in closing costs it may be better than a $10,000 discount and everyone wins.
1 vote Thank Flag Link Wed May 4, 2011
Linda has the point for you to understand about builders in production phases.
If they reduce the price for any buyer, then the appraisal on the next one they sell will be lowered to that price.

Every house they build after that would be at risk of not making value for loan purposes.

So, they may "give" you a special upgrade on flooring, window treatments, and other items, but lowering the price would jeopardize their whole business going forward. An appraisal that doesn't make value results in a canceled sale, usually.

You might ask: Does that mean the best prices are often on the last ones sold? YES!!
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Fri May 13, 2011
Did you end up buying the home? I read the comments below & you have some great information here. Another items of note is when you buy new construction, are you going to use their lender...or use an outside lender that you have chosen. This is important when it comes time to do the appraisal on the home. I have found that in the past, the builder's lender can somehow get the appraised value to match the sales price when an outside lender's appraisal comes in low. This is a HUGE factor to consider as you negotiate your sales price on the property.

Please know that if you didn't hire a REALTOR to represent you upfront, the builder will likely tell you that you can't have someone represent you know (because you have already been talking to the builder directly). However, it is SO IMPORTANT to have someone working for you and looking out for your best interests - you really can't afford to buy without a REALTOR.

If you would like our assistance in the purchase of your next home, please let us know. We would be happy to serve you. Good luck!

Melissa Hailey
Coldwell Banker Jane Henry Realtors
North Texas Top Team, Realtors
0 votes Thank Flag Link Mon May 9, 2011
Kashif - if you dont have a buyer's agent get one - its doesnt cost you anything. I personally have had success getting substantial price reductions from Highland Homes. They are a solid builder and think Starcreek is a good nhood. If you want some other options that are just as good with Highland check out Cypress Creek in Frisco just north of 121 and Coit.

Good luck my friend, if I can help you I would love to put my experience at work for you as your buyers agent. We will get the best deal possible on a home for you!

JP Piccinini
BROKER - REALTOR - Accredited Luxury Home Specialist
EXIT Advantage Realty
0 votes Thank Flag Link Thu May 5, 2011
Where is your buyers agent who can be assisting you ? Not familiar with "all the particulars" difficult render an opinion

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Thu May 5, 2011
I recommend using a buyers agent to represent you in these negotiations As others said go after the upgrades and closing costs if they won't work with the bottom line price. Builders seem to be more flexible in these areas.

With the new phase area in Star Creek they will be trying to maximize the price to compare to the rest of the new construction there.
0 votes Thank Flag Link Thu May 5, 2011
Kashif, Dan gave you some good advice. Builder's would rather give you thousands of dollars worth of upgrades or options or closing costs instead of reducing the price. Since this is a new phase if they reduced the price for you then that would set the rate for the rest of the homes being built there. If there is standing inventory it is easier to get a prifce reduction, but if it is a new built ask for upgrades, you should get more concessions there.. Good luck.
0 votes Thank Flag Link Thu May 5, 2011

Do you have Realtor representation? The builder's sales person works for the builder and is obligated to get as much as possible for any homes they sale. A good buyer's representative Realtor will work for you to help negotiate the best price possible. Realtor representation cost you nothing but can save you thousands
Web Reference: http://www.samsonsay.com
0 votes Thank Flag Link Thu May 5, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Home > Texas > Collin County > Allen > Home Buying in Allen > Question
Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer