How do I go about negotiating the price of upgrades from a new home builder? I'm looking to buy in Stapleton.

Asked by Stapletonbuyer, Denver, CO Sun Aug 25, 2013

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Robert McGui…, Agent, Denver, CO
Sat Aug 31, 2013

Sometimes you can work through your Buyer's agent to negotiate some of the upgrades into the price. But the builders are in the 'seller's market' mode at this time due to low inventory in the resale market and not a great deal of inventory in the builder's market. It never hurts to ask and sometimes an experienced agent can help you when negotiating the transaction and upgrades.

Robert McGuire
Your Castle Real Estate
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Sally Grenier, Agent, Boulder, CO
Mon Aug 26, 2013
In this market it is harder and harder to negotiate price & upgrades with builders. With inventory so low, buyer demand is up and builders recognize that they can ask for (and get) whatever price they put out there. There is a long line of buyers waiting for homes to be built, which hurts your negotiating position.

With that said, I completely disagree with Terry below. If we were in a different market, you absolutely CAN negotiate "incentives" (that can be used for upgrades, reduced price, or seller paid closing costs). It's best to have a Realtor representing you as a Buyer's Agent. You might even be able to negotiate a little now, but not as much as you could 2 years ago.

Just last year I got a buyer a $25K "incentive" which he used to reduce the purchase price..which was amazing!
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Terry Leach, Agent, Westminster, CO
Sun Aug 25, 2013
Builders do not negotiate on price or on upgrades. They do from time to time offer incentives when they need to sell some homes, in other words when they are looking to solve some selling problem. If you are looking for a deal from a builder, timing is everything, ie be the first buyers or the last buyers. Regardless of timing pay attention to how aggressively the builder is pursuing your business. If the selling agent is hot on your trail start asking for concessions, you just might get one. Having said that the first question out of your mouth when you meet with the selling agent should be; "what concessions are you offering"? Most offer something...
The smartest thing you can do is select a good agent to represent you, one that can help you maneuver the purchase and help select cost effective upgrades that will provide you a good return on investment when you go to sell. That agent will also help you hold the builders feet to the fire when craftsmanship is lacking or the build didn't go as planned. Hiring an agent to represent you doesn't cost you a cent, the builder pays the agents fee. Some folks think going it alone is better because the builder will give them a better deal, not true! Builders need buyer agents to bring them business, they are not about to alienate those agents for one deal when they have a whole development to build. Think about it; the builder will most likely never sell you a home again but the odds are high that your agent will bring other buyers especially if the builder does right by you. Therefore, in which situation do you think you the buyer will have a better experience? Represented by an agent or not represented by an agent.
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Nick Masciot…, Agent, Golden, CO
Sun Aug 25, 2013
If you are being represented by an agent who has experience working with builders this would be your best bet as we generally know what we can ask for and how to ask for it in a way that provides you the best opportunity to get the most from the builder. We have experience with most builders and know generally which builders are willing to negotiate and what they are willing to negotiate as well as analyzing the current market.

As far as you trying to negotiate on your own I would want to know which builder it is you are working with and what price range as well as the specific situation as far as how far along the home is, is it been sitting, is it at dirt???

Nick Masciotro
Metro Brokers/Ultimate Real Estate
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