Are new construction home prices negotiable? and if so, is there anything like the wiggle room you have when making an offer on a existing home?

Asked by 2012buyer, West Linn, OR Mon Jul 16, 2012

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HLR’s answer
HLR, , Oregon
Mon Jul 16, 2012
Everything is negotiable, new construction or existing. If a builder can't sell a home for his asking price, then he lowers the price and learns not to spend so much on the construction. No different than an existing home. It's all about suppy and demand.

Best to you.

HLR
1 vote
Rosejudyy, Home Buyer, South Miami, FL
Mon Sep 19, 2016
The best negotiating tip I could offer would be to get yourself an agent. Negotiate it with the builder to include his/her paying a buyer agents' commission and then find a good local full-time agent who has experience with new construction.
There is no rule of thumb on how much to ask off a list price. As agents, we base our offers on comparable sales. So, you'll need that information in order to base an offer. Many times builders will not even negotiate on their asking price, or they will give you an ""extra"" included in the price. A local agent should know what the builder does generally when selling their properties.
Good luck!
http://usaconstructionloans.com
0 votes
Dave Pautsch, Agent, Albany, OR
Wed Jul 18, 2012
Builders are sellers; so the answer depends on how motivated they are to sell. Certainly EXISTING homes that have been sitting on the market past their Certification of Occupancy are a financial liability to the builder and they are more likely to have incentives and discounts on THOSE homes than they might be on a "to be built" home. The key is to understand the builder's motivations. For example, assuming that the homes are priced consistent with the market, they are sometimes reluctant to negotiate on price. Drop the price on house A, and it immediately becomes a comparable sale for the appraisal on the next 6 months worth of sales. However, your "wiggle room" may exist in terms of upgrades and other stuff being included (air conditioning, fencing, refrigerators...).
If they are not priced consistent with the market having your agent work to get you solid comparable sales to support your offer could help bring them to reality...
Finally, depending on the price range it is not uncommon for seller concessions for closing costs be included and if you are financing FHA or VA for example, it could be expected. They may have a lender that is part of their company who offers a bonus for closing costs if you use them. Even if you don't use THEIR lender - ASK for the concession.
0 votes
2012buyer, Home Buyer, West Linn, OR
Tue Jul 17, 2012
Thanks everyone for your feedback. In short, I will work with my agent and make an offer that we feel is inline with what else is out there. Thanks!
0 votes
Craig Loughr…, , Oregon
Tue Jul 17, 2012
Good answers below. Really all answers are correct because there is so much variability from one builder to another. In the end, the price a builder will accept depends on how much cost he has invested in the property, and how much supply he has relative to how quickly his homes currently appear to be selling. Many builders are more rigid in their pricing than resale home owners.

However, a builder will reduce his price--even sell at a loss--if he has to. There had been a whole lot of selling at a loss in recent years, with a large number of builders even going bankrupt. That's not happening so much anymore, but home prices are still historically low.

Don't expect that to continue forever, though. The latest home price reports published in the Portland Business Journal and The Oregonian showed sold home prices for the Portland metro area (including West Linn) rising for the first time in years, and showed a rising number of both closed sales and pending sales. This, combined with historically low interest rates, means that this summer may be the best time to buy a home for a long time to come.

Best of Luck!
0 votes
Ron Thomas, Agent, Fresno, CA
Mon Jul 16, 2012
To say that just because it is a new-construction. it is not negotiable, is silly:
The Builder want to sell, and they always have some wiggle-room.

If wanted to insert a Realtor to help you, you must do it before your first visit and register your Realtor with the sales desk.

It costs you nothing, so why not?
0 votes
Lana Lavenba…, Agent, Grants Pass, OR
Mon Jul 16, 2012
No there isnt - the price is the price - you have all new construction...the seller is normally the builder and they know what they have into it and what they have to get out of it in order for it to work.
0 votes
Connie Dalton, Agent, Oregon City, OR
Mon Jul 16, 2012
Absolutely! Honestly you need to have a professional real estate agent working for you that can look at the comps and be creative. There are ways to ask for upgrades, negotiate closing costs and much more. Find an agent that will work for you and get you the best deal. http://www.johnlscott.com/connied 503-593-7655
0 votes
Jennifer Pet…, Agent, Portland, OR
Mon Jul 16, 2012
Prices may or may not be negotiable. It depends where the developer is within the project. Early on they cannot lower prices as they become comps for all future sales. However, a Realtor can run analysis for you to determine how much if any you can potentially come off the price. Also, all upgrades can certainly be negotiated, so it is in your best interest to hire a Realtor to work on your behalf (the agents at the open houses are working on behalf of the seller, even if they are not the listing agent, typically). It costs you nothing to hire the Realtor that works for you on the buying end. Feel free to call with any additional questions you may have. 503-522-5803 cell or visit http://www.PDXRockstars.com. Good luck!
Web Reference:  http://www.pdxrockstars.com
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