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Toni, Both Buyer and Seller in Louisville, KY

I have found lot for sale in a subdivision, but builder is saling the lot for too much for the size of lot how can i get builder to come down price.

Asked by Toni, Louisville, KY Tue Oct 26, 2010

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Dear Toni,

I agree entirely with the respondent who recommended approaching this situation very politely with the builder/developer. You will want to keep the door open for future contact should the builder and you not come to agreement on price and terms in your initial negotiations. Beyond that -- arm yourself to the proverbial teeth with statistical support for your position. If you feel that the sellers' asking price is too high, be prepared to show him -- diplomatically, of course -- documentation as to why you feel that way, such as recent sales data for comparable lots, in his subdivision and perhaps in other new-construction communities in the vicinity -- as well as evidence of the asking prices of what you consider to be comparable available lots elsewhere. Best wishes!

Syndi Chesser, 100% Club, Broker Associate, Builder
Senior Partner - Chesser Meade Group
Accredited Buyer Representative (ABR)
Certified Distressed Property Expert (CDPE)
RE/MAX Associates of Louisville (Kentucky)
O/C: 502.222.9167
Fax: 502.222.9030
Email: ChesserMeadeGrp@aol.com
Web: http://www.ChesserMeadeGroup.com
Web Reference: http://www.VIPBuyerKY.com
2 votes Thank Flag Link Tue Oct 26, 2010
Toni,
Can you pay cash? Can you close quickly?
You or your agent should make an appointment for you to meet one on one with the builder.
When you go take a signed contract and a check to open escrow.
Warren Buffet uses a phrase in these types of situations, He begins with..something to the effect of...
I am sorry that we arent able to pay you for all the obvious hard work and skill you and your team have put into.....(developing these great lots). But we are able to make you an all cash offer to close immediately, if you would like to consider this. If he says no, dont negotiate. Be VERY polite. Thank him. Be freindly. Walk.
But, be sure to keep the door open if he turns you down . Be even-minded and thank him for his valuable time and also for considering your offer.
November, December and January look a lot different to builders. Especially in the current economy. Even if he turns you down, you had the experience of the one on one negotiation, hopefully you made a useful connection and you may get a call, in a month or two. Or you can always make a follow-up call to see if he changed his mind.
In this down market, TIME is your ally.
Good Luck.
1 vote Thank Flag Link Tue Oct 26, 2010
A builder wants to BUILD not just resell homes. Think of it as an artist...He doesn't want to resell the canvas he bought for $20 to get $25, he wants to work to increase the value and make money on the finished product. The big money is in the build and the better the lot, the better the chance of him/her reaping a big reward. Bottom line...he marks it unreasonably high so you either buy it outright at a ridiculous price and he is okay with it or they show you how affordable the finished product will be and you contract with them to build.

Either way, it sounds like you have found the hardest part of the equation and that is the perfect location. If you want to have a strong negotiator on your side to get the most house for your dollar, I would be happy to help.

Wishing you the best,

Mark Atteberry, SG Priest Realtors
Delivering Personal Service with Exceptional Results
502-224-1039 Cell
http://www.LouisvilleMarket.com
0 votes Thank Flag Link Mon Mar 21, 2011
A lot of good answers below. I would also suggest that unless you have already lined up your own contractor, to negotiate with the builder, with assistance from your Realtor, to bid on the construction of your home, and I am almost certain you will get a MUCH better deal on the lot purchase...
0 votes Thank Flag Link Fri Nov 5, 2010
You can not make someone do what they do not want to do. But my guess is you have not actually made a binding offer backed up by cash. If you want to be taken seriously, pick out one of the realtors below and make a real offer with a substantial non-refundable deposit paid directly to the builder. If you do this it will be taken seriously unless you are offering some goofy amount or trying to steal the lot. There are many builders in our area with lot inventories that are free and clear. If you are hitting on one of them it may be a good idea to move on to the next builder/developer.

I know Tre Pryor (below) has experience dealing with builders.
0 votes Thank Flag Link Thu Oct 28, 2010
First thing you would have to do is make sure your assessment is right. You can do that by going to the pva and looking at the assessments on the other lots. Also you can call your local realtor and have them do some comps in the area. Once your armed with plenty of information you should take the info to the builder and present it to him. You should have a licensed realtor do this for you. The best thing about that process is you can have a realtor do it for you for FREE! If you would like you can give me a call and I can assist with this transaction and you can begin to build your dream home.
0 votes Thank Flag Link Wed Oct 27, 2010
Solid advice from each agent below. Get the comps so you know the true value then make an offer that you're confortable with. Most of all, find a Realtor to represent you... it doesn't cost the Buyer anything but affords you better knowledge and support.
Web Reference: http://www.TrePryor.com
0 votes Thank Flag Link Wed Oct 27, 2010
I guess that I would chime in with Syndi and Dick. Showing why you evaluate the price as you do is important and may make your point. Be prepared for the builder to come back with how he justifies the price.
It will also be important to check the restrictions of the subdivisions and if the builder that you want to use can build in that subdivision.
I am not real clear if you are trying to buy a lot to build on, or a package deal from the builder that owns the lot.
Of most importance is working with a REALTOR that you can trust. They should have your best interest at heart.
Web Reference: http://thedobbsteam.net/
0 votes Thank Flag Link Wed Oct 27, 2010
Toni

You have received excellent advice from Syndi Chesser which you should follow. However the first thing you should do is find a Realtor you are comfortable with and that will look out for your interest. They will be able to present that offer you are going to propose to the seller and present them with the justification (facts) behind it. As I tell anyone that is asking for real-estate advice you need to hire a Realtor we protect the Buyer or Sellers interest.

Dick Bieniek
Semonin Realtors\
6421 Bardstown Road, Louisville, KY 40291

dbieniek@semonin.com
http://www.B-my-Realtor.com

(502)231-8766 Office
(502)231-0012 fax
(502)298-9600 Direct/Cell/voice mail
(877)385-4663 toll free

Licensed to sell real-estate in KY

http://BmyRealtor.housingtrendsenewsletter.com
Web Reference: http://B-My-Realtor.com
0 votes Thank Flag Link Tue Oct 26, 2010
Toni,

There is more to just offer a price on a piece of property. If you are ready to make an offer on this property, Give me a call. 502-321-4978.
0 votes Thank Flag Link Tue Oct 26, 2010
It is not always about the price. If you are ready to make an offer give me a call and write it up. 502-321-4978.
0 votes Thank Flag Link Tue Oct 26, 2010
Have your Realtor submit an offer for the price you feel it is worth in the eyes of you (the buyer).
0 votes Thank Flag Link Tue Oct 26, 2010
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