Home Buying in Houston>Question Details

Vero, Home Buyer in Los Angeles, CA

When negotiating with new home builders, is it easier to negotiate for dollar ammount in upgrades or for?

Asked by Vero, Los Angeles, CA Mon Jun 23, 2008

specific items like fridge, washer & dryer, etc, etc??? Thanks!

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Most builders will give you the upgrades rather than lower the price. Make sure you get everything in writing and specify brands if they apply.
Web Reference: http://www.LeanderHomes.com
1 vote Thank Flag Link Sat Jul 5, 2008
Upgrades from the builder are a profit center, so the builder will give your more in upgrade dollars than he would for appliances which have a lower profit margin for him. If you can get an upgrade allowance then apply it to what you need, that would maximize your benefit.
Web Reference: http://www.ERAHouston.com
0 votes Thank Flag Link Sat Jul 5, 2008
Sorry, I just realized I didn't completely answer your question earlier. It's been my experience for a smoother negotiation it's best to name specifically what items you would like to be included in the purchase price. Underwriters have an easier time with this also.
0 votes Thank Flag Link Mon Jun 23, 2008
Now here is a question right up my alley, I have been selling new homes for 15 years. Most builders are not inclined to negotiate price (at least in the Seattle area) for a couple of reasons. 1. It effects future sales. 2. it affects past buyers. 3. the bank looks at past sales for future loans.
Upgrades, interest rate buydown, closing costs, etc , don't show up in public sales price or what has to be reported to the bank. I hope this helps.
0 votes Thank Flag Link Mon Jun 23, 2008
If the home is on the ground it is a lot easier to try and get the price down.
If the home is a To Be Built it may be easier to get the upgrades negotiated.
Hope this help.
Jeff
0 votes Thank Flag Link Mon Jun 23, 2008
Not knowing all the particulars builders all work in different ways. Having realtor who represents you know more about each builders "file" what best works for all parties. Never purchase a home from a builder, seller, listing agent unless you have your own agent who represents therefore you are covered under your agent e & o insurance if something should happen. http://www.lynn911.com
0 votes Thank Flag Link Mon Jun 23, 2008
Hi Vero,

It will be much easier for the builder to give you upgrades instead of money.

If you are not already beign represented by a realtor, please call me and I'll be gladd to help you in your negotiations.

Juan Carlos
281-660-9988
hernanjc@comcast.net
Web Reference: http://www.har.com/jch
0 votes Thank Flag Link Mon Jun 23, 2008
Vero,

It is always easier to negotiate for upgrades rather than dollars. The reason being that upgrades have profits built into them. The buyers purchases the upgrade (counter top, fridge, etc...) at cost and sells it to you at retail. So each dollar in upgrades costs the builder an amount less than a dollar. Also, if the home is in a development, the builder usually prefers to give incentives rather than lower the price as lower prices often anger buyers who have already purchased in the same development.
0 votes Thank Flag Link Mon Jun 23, 2008
Wow good question. Probably better is $. That way you can choose specific models types etc. Also I would want that included in the price of the house these days. I would do my best not to pay for any upgrades outside of the contract purchase price unless you can put that money in escrow somehow. You will likely get resistance on this but due to financial stability of builders these days, that money could be in a home you don't own if they go into bankruptcy.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Mon Jun 23, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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