I have represented builders for nearly ten years. I have also represented buyers.
A strong word of caution!!!!! Do NOT go into a builder's showroom without an agent to represent your interests! In North Carolina, builders salespeople do NOT have to be licensed, and therefore do NOT have to DISCLOSE that they represent the builder. They will surely tell the seller everything that you say (esp about that new job or pay raise or baby on the way, etc that can hurt your negotiating power).
Sure they will tell buyers they are "getting a better deal," but who do you think is really getting the better deal? That salesperson (not agent) that is taking both sides of the money. This is part of the reason why I think all builder's salespeople should be licensed ... to protect the consumer from these unprofessional sales practices.
I try to educate all buyers who come into my show room that the fee for their buyer's agent is offered in the MLS for their buyer's agent for a reason: For their protection & my reduction of liability. I like to go to sleep at night, knowing I do my best to do business the right way. And I am a licensed REALTOR(R) who adheres to the Code of Ethics. NOT just a builder's UNLicensed salesperson.
Caveat Emptor! Buyer Beware and you should use a REALTOR(R)!
Hope that helps! Have fun home shopping!
Insofar as negotiating on a home that has not yet been built, some builders will and some won't. Many of the smaller "boutique" builders that specialize in super high-end homes won't budge on their prices because they need to protect their brand image, though even their attitudes seem to have changed somewhat recently. Other smaller builders...those that build 4-5 "normal" houses per year, are usually willing to negotiate. I've never tried to negotiate on a custom home with any of the big guys...Standard Pacific, Ryan, etc...but most of them operate on sort of an "a la carte" pricing structure that's created by the bean counters, so they probably won't deviate too far on a custom build. But again, existing spec homes are a different story.
I will say this...in the 28173 zip code...you'll probably be much better off buying existing construction whether it be a new spec home or a resale. There's a ton of inventory out there and a lot of really good deals to be had.
In your particular situation, you can ask them to lower the list price, you can ask them for more money towards options, you can ask them for specific options to be included or you can ask them for all of the above. What's the worst thing they can do? Say no? They're certainly not going to kick you out of their office. The idea is to agree on a deal that benefits both of you. The builder gets the lot off their books & makes some money, you get the house you want, with the options that make you happy at a price you can afford.
If you're still looking in Union County give me a call! I love to negotiate new construction deals.
New construction prices can be negotiates, however, the best results would come throught the guidance of a local real estate professional that knows tha area market and a bit of the development history.
It would be beneficial to have access to the sale prices of recently sold homes, both new construction and resales as well as the current resale asking prices. Builders also do "promotionals" from time to time. This may involve discounting prices, free upgrades, lot discounts etc.
Hopefully this information has helped. If you need any assistance, feel free to contact me. Also, please visit my website at http://www.NancyCosta.com. Best of luck to you. Nancy
I always offer less than asking price, even if the builder's agent has said the price is firm. Sometimes it is, but more often it is soft. One agent on site told me that his builder has never taken a nickel off the price, but lo and behold, we offered 5% low, and he came back at 3 %, so we saved 2%!! A considerable amount in this case.
Thanks and good luck
Prudential Georgia Realty
Coldwell Banker Triad
- If the builder is building this home just for you, they'll have less incentive to negotiate. If you're looking to buy a home that is complete and has been on the market for several months after completion, the builder may be more willing to lower the asking price in order to reduce their inventory and save on carrying costs.
- If the builder is already adding $15000 in options, that's the same as reducing a "completed" $300,000 home by 5%.
- Have a real estate agent work with you and pull comps for the neighborhood. Find out what the average per square foot in the neighborhood is, and what features are included at that price.
- You may need to show that you're a good investment. Can you put 15-20% cash down? Are you willing to close in a minimum amount of time? What kinds of real estate commissions are involved?
It all depends on the builder, the neighborhood, and the local market. Good luck!
Let me know if I can help you in any way. Even when buying new construction, you are wise to have a Buyer's Agent to represent you. The builders know that they need to keep the real estate community happy with them. This give the buyer added "clout" when dealing with the builder. I try to be at all meetings when my buyers are having a new home built. I can back them up when questions about what was said come up. We may be a small company but we belong to a very large industry and REALTORs talk to each other.
Warning: Do not buy new construction unless you are fairly sure that you will be living in the home for at least 4 to 7 years. New Construction is like buying a NEW car. Call if you want to discuss this.