In My Neighborhood in 63128>Question Details

Belle, Real Estate Pro in 63129

What percentage of the list price is new home construction selling for in St. Louis County, MO? Both spec and build.

Asked by Belle, 63129 Thu Mar 10, 2011

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I come up with 89.6% of list price for what it sold for. There are more variables when negotiating for a new home. What kind of add-ons are you including in your purchase price or will they be purchased later.
0 votes Thank Flag Link Thu Mar 10, 2011
i think all of the answers provided have some validity, the only fact i can site is that it has been my experience that you can pretty much cut a deal with most builders these days and if you meet resistance there is one around corner that will play ball with you. the sale price to list price ratio that you are requesting is so flawed by the builder industry with their packages, inclusions, options, through-ins, etc. not to mention their finace plans that you'd be hard pressed to get a good number. the base price vs. actual price vs. the price that is reflected in the mls. is often lost in translation. run some tax records of recent sales in the community/subdivision look at the price per square foot, then cut your best deal working backward from that number. also watch out for those builder contracts and understand that they are not Realtor contracts and do not offer near the same protection to the buyer
0 votes Thank Flag Link Thu Mar 10, 2011
There is no one answer to your question. Typically a "to be built" home has prices set based on the amenities that it has with it. Most people add about $10,000 to the price by adding extras over and above the basic price point of the home. That could be adding light fixtures, upgraded fixtures or utilities, finishing the basement, adding a deck or tweaking the floorplan in some way or a multitude of other "options" that the builder offers. Some people add over $100,000 to the base price by the time they are done. Some builders will have advertised promotions where everything sold during a certain time period gets $XX in upgrades free or they may specify specific things that they are giving. Some will offer very low financing. In some cases they will have "opening day" specials at a development where everyone who buys on that day gets a discount. In terms of negotiating a discount above what the developer is offering, that depends on the builder, his financial status and how well the development is going. If he can't meet his costs now, he's not as likely to give the buyer a break. If he is in strong competition, he may be more likely to.

On stock/inventory homes, it depends on the stage of the development. Often the last homes in the subdivision are the inventory homes and the builders sometimes discount them heavily in order to get them sold so they can get out of the development. HOWEVER, those homes typically have more amenities built into them (the builder adds all the bells and whistles when he builds them so he can show potential buyers what is available), so their starting price is higher. That can end up meaning that you get a discount over the as built price, but it's still higher than the base price in some cases.

We have had several builders go out of business over the past few years. As a result, we can sometimes find partially finished homes and homes in developments where only a few homes are finished and the rest of the development is questionable as to when it will be finished (so you may be living in a construction zone for awhile or you may have a second builder who comes in and builds a different style of home or a much cheaper home) may on the surface seem like great deals, but if in a few years you want to sell and you are competing with a builder who is still building or someone who sold later homes at a much lower price point, you may have an issue.

One thing that the builders and developers do not negotiate on is discounting the price if you don't use a Realtor, since the commissions are built into the marketing budget, not the sales price. When you buy directly from the builder/developer, their salesperson is working for the developer and protecting his interests, not yours. The Realtor is there to protect your interests and to help negotiate any decreases in price or perhaps the addition of amenities. The rule though is that you have to identify the realtor when you first sign into the development, otherwise the developer will not let a realtor help you later.
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0 votes Thank Flag Link Thu Mar 10, 2011
coustom built homes area selling at an all time low, due to lower labor costs, and builder margins. there really is no exact answer to your question because very little inventory of spec homes currently exist. the ones that do exist, the price depends on the builders financial situation and relationship with his bank.
0 votes Thank Flag Link Thu Mar 10, 2011
Market Statistics Report
Listings as of 03/10/11 at 12:12pm

Property Type Residential Transaction Type Sale County St Louis Status Sold (3/10/2010 or after) Age New Construction

93.63 %
0 votes Thank Flag Link Thu Mar 10, 2011
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