Question Details

Lisa, Both Buyer and Seller in Cleveland, OH

Is it unreasonable to pay base price on new construction and ask for $30K in upgrades and closing costs?

Asked by Lisa, Cleveland, OH Sun Feb 8, 2009

We are strongly considering building a Ryan Home in Medina, OH. There are many topics covered on this forum and others on negotiating and many people seem to get many different results. Based on what I have found in my research, is it unreasonable to make an offer to pay the base price - $189K (which includes a 4th bdrm and morning room incentive), use their lender, and as for an additional $30K in upgrades and cover closing costs ($15K)? It seems like so much to ask for. Do you ask for it all at one time and then see what the response is? Any advise would be greatly appreciated. (FYI... we currently dont have a realtor and that topic raises more questions to come)

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well we met tonight and a few things - we can not bring in a realtor, well we can but they wont pay him, since we have already visited a few times without one. So that is a bit of a bummer. A realtor we have been working with on resale property did mention he would be willing to assist on the side as best he can. Very nice of him. The closing costs - the 15K is a total of the closing (7-8K) and "good faith" monies (which this confuses me a bit too).
They seem very bold in that they are offering and doing all they can to help; however, I left it that we are comfortable at a payment $150/mth and I would like to see what they can offer to make that happen for us. At that point they may have a more serious offer. She didnt say no to that but didnt completely give in either. She indicated you can ask for anything but I need to know you are serious and I will ask. So that is good news. Here is what we are thinking - a 10K credit (some to closing costs and some to upgrades).

My question - is it more beneficial to ask for closing cost assistance and get it all or most taken care of by the builder or ask for upgrades? Does it really impact the bottom line or the seller more directly one way over the other?
0 votes Thank Flag Link Mon Feb 9, 2009
A good Realtor in your area may be able to get you a better deal than if you are dealing with the builders rep yourself.
I just closed a builders spec home and the buyer I was representing was willing to buy a builder model if they did some changes. The builder was unwilling until we went to another builder in the area that I am familar with. More home, nicer upgrades, some upgrades by builder 1 were standard items for builder 2. My buyer's main concern was the timeline to close (relocating to the area) and builder 1 gave us a half bath and a finished lower level at no addition charge to seal the deal.

By the way where is the 15k in closing costs coming from? That seems OUTRAGEOUSLY high on a 190k home.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Mon Feb 9, 2009
RULE OF THUMB:

Never purchase a home from builder / bank / seller / listing agent UNLESS you have a buyers agent. Agents are familiar with art of presenting offers for win win situation for all parties, and control all process thru closing . You would also covered under YOUR buyers agent e & o insurance if something should go wrong.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Feb 8, 2009
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