Can you negotiate closing cost with a new construction house.?

Asked by James Thomas, Philadelphia, PA Thu Jun 30, 2011

Amberleigh new construction town homes

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16
John Sacktig, Agent, New Jersey, NJ
Fri Jul 1, 2011
"In South Jersey, the builders are hurting and ARE MOST DEFINATELY negotiating like crazy. So just keep that in mind. I assure you my colleagues are not"


I am well versed in South Jersey Real Estate as well.. and o.k.. if you have one builder that is "negotiating like crazy" (although hard to believe) I would advise clients to complete their due diligence on any builder that is acting "crazy" .. sounds like the whole thing could be instable.. and can cause all kinds of issues.
Seen that too.. yeah.. everybody come in and buy! Oh, sorry, we have to leave now. Your deposit? What deposit?


Yes, there are incentives and closing costs could be an incentive.. but there is "very rarely" much movement other than the given incentives.
1 vote
Brian Kim, Agent, Edgewater, NJ
Thu Jun 30, 2011
Anything is negotiable. Ive sold new construction where a builder picks up closing costs up to "x" amount of dollars. It all depends on supply/demand, size of builder, market conditions etc. Generally, builders prefer deals with as few moving parts as possible, meaning minimal customization.
1 vote
John Sacktig, Agent, New Jersey, NJ
Thu Jun 30, 2011
Hi James,

As you can see a whole bunch of answers here.. I'd like to know what happens when you go for it.. be honest with us and let us know how that negotiation goes!

A lot of Realtors will say.. yes! Everything is negotiable! Yes, call me and I'll try my best to get you that included, when in fact they already know.. it probably ain't gonna happen for you unless it is offered as an incentive.

What I will say is definately go to the builder with a Realtor to have someone on your side, find someone that is smart and knows how to go about negotiating with builders.. not just anyone that says.. Yes! Everything is negotiable!

I am with Maggie and I am from the "everything is negotiable" school of thought.. But from expereince with builders in todays market.. nah, not seeing too much of that at all..

Good Luck!
1 vote
Maggie Quinn, , Jackson Township, NJ
Thu Jun 30, 2011
I am of the school... everything is negotiable it doesn't hurt to try you have nothing to lose and something to gain if you succeed.

Good Luck
Maggie Quinn
Crossroads Realty
Jackson/Millstone Office
Cell 732-299-1502
1 vote
Richard Brad…, Agent, Turnersville, NJ
Tue Jul 5, 2011
Everything is negotiable. I just negotiated a home in this complex for a buyer of mine. It all depends on supply, demand and a lot of variables. Timing is everything in negotiations, so give me a call if you need help with this. I live in Williamstown and sell here as well.
0 votes
I just signed my first contract on a new consturction. I havent closed yet, but the time is quikly approching. Can I still negotiate a better price??
Any sugestions??
Please contact me at jesus.gonzalez431@yahoo.com
Flag Fri Apr 25, 2014
R. Eric Axel…, Agent, Cherry Hill, NJ
Thu Jun 30, 2011
James, I just read what my colleague John from East Brunswick wrote. Not sure why he's answering a South Jersey question as the customs in the 2 parts of the state are actually night and day, but I have to make sure you understand:

In South Jersey, the builders are hurting and ARE MOST DEFINATELY negotiating like crazy. So just keep that in mind. I assure you my colleagues are not
Web Reference:  http://www.FamousEric.com
0 votes
Lindsay Gall…, Agent, Stoughton, WI
Thu Jun 30, 2011
It always depends on your local customary real estate practices. Home prices, whether new or used, are subject to negotiation. If you are interested in a seller/builder paying closing costs, write it into your offer. If they are unwilling or unable, they will counter your terms and leave it into your ball court. Good luck!
0 votes
R. Eric Axel…, Agent, Cherry Hill, NJ
Thu Jun 30, 2011
I have read the various answers and I feel that all my colleagues are correct. While closing costs are fixed costs and are NOT negotiable, you can ALWAYS ask the builder/seller to offer you a credit to offset that amount. There are 3 types of offsets:

1. a reduction in sales price, you pay all the closing costs

2. credit built into the sales price so that you can finance a portion of the closing costs

3. a combination of 1 and 2

Let me know if you need me to email you some free closing costs calculators/worksheets. Good luck to you!
Web Reference:  http://famouseric.com
0 votes
Molly Hay -…, Agent, Columbus, OH
Thu Jun 30, 2011
Yes! I see builders paying for closing costs and point all the time. All builders right now are offering some sort of incentative. If they won't pay CC maybe you could waive their current promotion for closing costs?!
0 votes
Catherine Mc…, Agent, Deptford Township, NJ
Thu Jun 30, 2011
Hi James I have negotiated closing cost with some builders. I am seeing some of the builders contributing towards closing cost and builder incentatives. Working myself in the Williamstown , Gloucester County market all you have to do is ask the builder. You can submit to the builder a request for closing cost to be included in you contract with him. Also many buyers today do not relizae that you can have representation when it comes to buying new construction as well. Do you have a realtor ? What you have to remember that you need to bring that Realtor with you on the first visit to the site and have them registered with the builder to represent you. Many buyers do not know that they can bring their agent to represent them in a nw construction purchase.
0 votes
Scott Godzyk, Agent, Manchester, NH
Thu Jun 30, 2011
James closing costs are pretty set, there isnt much room to negotiate, your best chance for negotiation is which your purchase contract, some buikders may hesitate to lower price but offer free upgrades or extras at cost. Having a buyer bnroker who is well experience din new homes sure can help.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Toni Sadiq-L…, Agent, Sewell, NJ
Thu Jun 30, 2011
Hi James,

Oftentimes in new construction developments, they have goals they are striving for to meet end of a month or end of the quarter. When it gets closer to that time, they offer a lot more and there is a ton more "wiggle room" because they want to make their goals. Many times if you just ask, they will tell you when the best time is to buy in their development.

Good Luck!

Toni Sadiq-Lexton
856-343-8034
0 votes
Jitka McCabe, Agent, Mantua, NJ
Thu Jun 30, 2011
In this market you can negotiate anything with a builder. Free upgrades, paid points, closing costs etc. You will need the appraisal to come in at that price though so please understand that the builder is really not paying for your closing costs. What is happening is that you are financing that amount. You should have a Realtor representing you to negotiate the best deal you can get an make sure that the contract is acceptable. Good luck with your new home!
Web Reference:  http://jitkamccabe.com
0 votes
Jane Shebroe, Agent, Jupiter, FL
Thu Jun 30, 2011
Some new developments offer generous contributions to closing costs if you use their lender. However, ALWAYS apply to more than one bank or lender and request a GFE (Good Faith Estimate) to compare rates & terms. Be sure to let them know that you will be comparing so they will be more competitive....this can save you thousands!

Jane
http://www.RealTerrific.com
0 votes
John Sacktig, Agent, New Jersey, NJ
Thu Jun 30, 2011
Yes, You can negotiate on any point of the contract.

But honestly, most builders are already offering so many incentives and have reduced prcing by so much, that it will probabaly be a battle to get more than what they are already offering.

But by all means, give it a shot.. you may hit the nail on the haed and it may work!

You won't know unless you ask!
0 votes
Gerard Carney, Agent, Spring Hill, FL
Thu Jun 30, 2011
Since the buyer wants your money, and you have , he doesn't, then you are always in a negotiating seat!
0 votes
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