Lore, Home Buyer in Texas

I am interested in buying a home being sold by a builder(standing inventory) and would like to know if i can.

Asked by Lore, Texas Mon Apr 6, 2009

The home I am looking at is priced at $489,000 and i want to get it for$400,000 is this possible?

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Answers

8
Hi Lore -

Another factor to consider with regard to new construction/builder inventory right now is the context of pricing. Over the past couple of years, pricing has been reduced incrementally since the "top" of our market. So, to use round numbers, a builder may have had an inventory home at 1234 Anystreet priced at $700,000 a year ago. If the builder still has that home in inventory, the price has assuredly dropped. For example's sake, let's just say this 1234 Anystreet inventory home was reduced by $100,000 six months ago, and is now priced at $500,000, a nearly 30% decrease year-over-year. If you're considering the current market to be overpriced (which it may very well be) and are only willing to pay $400,000, then the builder will not see you as trying to get a $500,000 home for $400,000; it will see you as trying to get a $700,000 home for $400,000. As the answers before mine indicated, it is fine to offer this as long as you have evidence (very recently sold comparables) that $400,000 is now reasonable.

Make a conscious effort to not confuse "list price" with "value." Most of the best value listings right now are bank- or lender-owned properties, and banks are not real estate agents. It is [nearly] impossible for builders to beat foreclosure pricing, so make sure the comparables you're using are in very good shape (ie: clean, similar finishes, new/like-new flooring/fixtures, etc.).

Just know that for builders, everything is a numbers game. It is not personal and is very much based upon bottom-line. I worked for small, local builders as well as huge Fortune-500 firms for the first 5 years of my real estate career. The motivation was the same. If you present a data-substantiated offer accompanied with earnest money (applicable to some builders | earnest money is always refundable if your offer is not accepted) and there is "room" in the budget, it will have a very good chance of being accepted.

Hope this helps...I wish you all the best of luck!

Sincerely,

Linne Karstensson
Owner, OwnLakeLasVegas.com
Direct: (702) 525-9492
Email: Linne@OwnLakeLasVegas.com
Web: http://www.OwnLakeLasVegas.com

Lake Las Vegas' most comprehensive real estate and community web site:
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1 vote Thank Flag Link Mon Apr 6, 2009
No Most likely it is not possible. Understand that I am not a realtor, but I did buy a home Oct 08 from a bulider. If they sell it for $400,000, then they almost have to lower the existing home prices in the development. When I purchased mine it wasnt built, I had an agreement that if the price went down, my purchase price would be lowered.(even though I had signed the papers at an agreed upon price) It is my understanding that not every builder will do that. good luck
0 votes Thank Flag Link Fri May 15, 2009
Hi Lore,

I have negotiated a property purchase by my client for $465,000 (previous sale was for $1,295,000 - December 2006)

If you are not currently working with an agent or would like additional information please feel free to contact me any time at (702) 374-3210.

I have the following Designations:
-- Certified International Property Specialist (CIPS)
-- Accredited Buyer Representative (ABR)
-- The e-PRO certification is NAR's online training program to certify real estate professionals as Internet Professionals(e-PRO)
-- Transnational Referral Certification (TRC)
-- At Home With Diversity (AHWD)

Sincerely,

Benny Paul CIPS, ABR®, e-PRO®, AHWD, TRC
Realty One Group, Inc
Cell (702) 374-3210
Fax (702) 947-5755
Email : bennypaul@hotmail.com
Website : http://www.BennyPaul.com
Web Reference: http://www.BennyPaul.com
0 votes Thank Flag Link Wed Apr 22, 2009
Yes and even for less than you would find as acceptable. There is a builder that is offering their product at short sale prices. This also includes 60 of their model homes through out the Las Vegas Valley.
0 votes Thank Flag Link Wed Apr 22, 2009
That's quite a discount.... I did help a client buy a home the other day and we got $75,000 off.... you won't know till you ask.... but you need a Realtor!
0 votes Thank Flag Link Mon Apr 6, 2009
Hello Lore,

Lore,

I think what you are suggesting is possible. It really depends on a few factors. The primary factor is the builders motivation. Builders do not like standing inventory and most are only building homes when they have a buyer under contract to purchase the home.
To successfully negotiate the reduction you need to do your homework. It is best if you have an agent working on your behalf, but if you have already signed in at this community without an agent they will not pay an agents commission. You need to be armed with recent comparable sales and also show the builders sales person the comps and if there are other similiar new construction homes in the area, use the pricing information for those homes as well. If you have a Realtor representing you have the realtor research what has recently closed in the housing tract you are interested in. Several large local builders have had large sales promotions that lasted one weekend only. It is possible that someone recently purchased the same model house you like for $400k or even less at one of these sales.

I have successfully negotiated for lower prices on new construction purchases for my clients and would love to help you if you are not already working with someone.

Ron Johnson
Elite Realty
702-595-9743
0 votes Thank Flag Link Mon Apr 6, 2009
Lore,

Seek the advice of a real esate professional familiar with this area and produce. They will be able to best advise you.

Anything is possible, but your offer should be based on facts that will support your offer. Successful offers are more than just throwing numbers at the owner, they need to be backed up with solid information. An agent can assist you with this.

Additiionally, we suggest you find out about financing before you begin dealing with the builder....and their financial department that can open another can or worms.
0 votes Thank Flag Link Mon Apr 6, 2009
The house Lore is looking for is not in Lake Las Vegas FYI...
0 votes Thank Flag Link Mon Apr 6, 2009
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