Home Buying in Queens>Question Details

mandy, Home Buyer in Nassau, NY

how much should i offer on a new construction? i know it depends on the area but what is the basic %?

Asked by mandy, Nassau, NY Mon Dec 29, 2008

this is for long island, ny

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Katelin,

New constructions are hard to gauge right now. The reason I say this is because in my area, builders are taking a real beating. As a Realtor who deals mostly with existing home sales I advise my clients not to regard any offers of less than 90% of the sales price. New constructions are different because they are held as stock that needs to be moved off the shelf. On top of that, as I said already, homebuilders have been having a hard time of it for much longer than the rest of the market. I would suggest that you get yourself a Buyer's agent and as them to search the sales price of new builds for the last three months. The market is shifting and changing so much that I don't think sales from six months back will present a legitimate picture. I would (from a conservative point of view) feel that an offer of 80% of the list price would be a good place to start. There have been some articles that suggest starting at 50% but I don't recommend it. If It were my seller, I would advise them not to even acknowledge the offer and if you really want the house and this happens to you, it would mean having to make another offer with cap-in-hand.

I strongly suggest that you seek out an accredited buyer's agent, (one who holds an ABR designation) and consult with them about what the market is doing and make your plans from there. You can get a new build for a very good price, but sellers are not going to give anything away for free.
1 vote Thank Flag Link Mon Dec 29, 2008
If you have a Realtor representing you, have the Realtor run recent comps on the area to determine how the property will appraise. If it does not appraise well by your lender, you will not get the loan.

Also consider what the property is worth to YOU. There is no set formula...the selling price is always determined by what a buyer is willing to pay for a property.

Be sure you have FULL LENDER approvals with only 2 contingencies: Contract & Appraisal. Qualified purchasers are hard to find and the better prepared you are financially, the more flexible the seller will be to insure a closing. also be prepared to put down 20-25% to make the offer even sweeter.
Web Reference: http://GailGladstone.com
1 vote Thank Flag Link Mon Dec 29, 2008
Hi Katelin:
There is no basic percentage on any house or offer. With new construction, there are many aspects to look at. Is the construction complete, partially done, or not even built? I would be pleased to help you if I can by comparing other units in the area. Are the houses listed with a realtor? Give me a call or send me an email.

Ralph Windschuh
Century 21 Princeton Properties
631-467-0009
rwindschuh@c21princetonproperties.com
0 votes Thank Flag Link Mon Dec 29, 2008
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