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
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.
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!!
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!
Coldwell Banker Jane Henry Realtors
North Texas Top Team, Realtors
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!
BROKER - REALTOR - Accredited Luxury Home Specialist
EXIT Advantage Realty
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
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.
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