Home Buying in Georgetown>Question Details

Joe, Other/Just Looking in Georgetown, TX

If I am considering on buying an upper end house in Georgetown TX, how much are builders likely to come off

Asked by Joe, Georgetown, TX Thu Oct 2, 2008

the asking price for completed homes that have been empty for 6 months, given the current economy for high end real estate and the liklihood it may sit for a much longer time? Asking prices are in the $550 to $650 range the same builders all seem to have many empty houses in this range.

Help the community by answering this question:


It's been my experience in selling new homes whether they are upper end or not, that if you build from the ground up, you are less likely to get the builder to come off the price as much. Most builders are giving incentives that you can use for upgrades or decrease in price. If you buy a home already under construction, it's been my experience in the past that the builder is usually more willing to deal. It depends on how far along the house is....as well as other things.

I agree with Lynn, your buyers agent should be able to help you and do the research you need to get the best deal you can on a new construction.

If you have any other questions, please do not hesitate to contact me.


1 vote Thank Flag Link Thu Oct 2, 2008
It is a case-by-case or house-by-house basis Joe. Unitl you begin negotiation it is impossible to tell exactly how motivated a builder is to sell a spec home.

Have you seen how many builders have gone broke in the last 5 years? If a home is priced too high when they put it on the market they can hold it so long (while taxes and interest are piling up) that they will never be able to make a profit. Rarely does a builder have the ability to bring cash to closing.

Make sure you find a builder who: 1) isn't desperate; 2) will sell his home for a fair price; 3) will be here tomorrow.

The good news is that Georgetown has several great builders who fit this criteria.
0 votes Thank Flag Link Mon Aug 20, 2012
Hi Joe,
I am just picking up on your question so if you've "pulled the trigger" already and found a new home that is great. I hope you are enjoying it and I hope you found the deal you were looking for.

Otherwise, good question! Now lets see if we can give you an answer you are looking for. First let me qualify myself. I have spent over 25 years working within the new home industry in sales and construction. 18 of those years in senior managment for both national production builders and custom home builders. I am well versed on their cost models, pricing stratagies, and profit margins. Your question and your personal buyer profile are the very reason I left Corporate America and started a new company- Cornerstone New Home Solutions. It is a niche Real Estate Company that specializes in clients who seek to buy a new home from a builder or build a new custom home. It is different from buying a resale. Now instead of sitting down with clients but representing the builders, I offer my experience and expertise directly to the buying client. I represent them and their best interest. They take full advantage of my knowledge and they save money.

The discount you seek will vary depending on the builder, their size, their inventory, time of the year, current market conditions, necessity for the sale, their costs on the specific home and their desired margin of profit. A LOT goes in to the pricing strategy and ultimately the selling price. I've seen discount ranges from 3%- to 20% or more. Monetarily as little as $5,000 to over $100,000 again depending on the combination of factors above. The key is to know how to negotiate with the builder and how to structure the offer. Don't get caught in the price trap though. Bottom line price is not always THE BEST DEAL!

If you would like to learn more or discuss the advantages of my services give me a call or email me. I 'll be happy to meet with you.

Stephen B. McClain, Broker Owner
Cornerstone New Home Solutions
512 876-3116
0 votes Thank Flag Link Wed Jul 22, 2009
Are you still looking to buy a home this Spring in Georgetown? BuyersHouse Realty would love to be of assistance. You can do searches of Georgetown resale home and New home searches on our website for free. Also keep in mind that Buyers house Realty is the Virtual Evolution of Real Estate, we reward our clients with 75% of the commission we receive from the seller or builder when you purchase a home as our client. Visit us on the web at http://www.BuyersHouseRealty.com
0 votes Thank Flag Link Wed Feb 18, 2009
Hi Joe,

I hope you are already settled into you new home.

If not, what are you waiting for? December is it my friend. Get in by the end of the year with a 15% discount, little to no tax prepaids, and get your homestead exemption for 2009 to save on next years tax!

Contact my profile or website and let's get that offer in.

0 votes Thank Flag Link Tue Dec 9, 2008
Joe, "just looking" in Georgetown - stop looking and put an offer in, that's the best way to determine how much they'll come off.
0 votes Thank Flag Link Tue Oct 21, 2008
There is typically more price flexibility in a completed builder inventory home (also called "spec"). Your ability to get a better deal will also depend on how quickly you can close, whether you use the builder's in-house lender, and how long the builder will be in the neighborhood. Generally if a builder is in "closeout" mode in an area they are more motivated but it is dependent on the builder and every situation is different. Best of luck to you. Please let me know if you need any assistance.
0 votes Thank Flag Link Mon Oct 20, 2008
Hi Joe,
I recently received word of one builder in particular that came down $100,000 off their list price. It truly depends on the builder, how motivated they are, and most importantly, whether or not you have an interest in a similar home from a different builder. They want your business, especially if they know you are going to buy.

Which builder is it in Georgetown? With prices in that range, it sounds like Jacobs, maybe?
0 votes Thank Flag Link Fri Oct 3, 2008
Since it has been on the market awhile I have seen some come down over 10% or so. It really depends on how quickly the builder wants to move their inventory.
They may even go down more at that price range.
You can make them an offer. All they can say is no.
I have been selling new homes for over 11 years. I have seen a lot of different scenerios.
Send me an email if you would like more info.
0 votes Thank Flag Link Thu Oct 2, 2008
Your buyers agent would be the best judge of how submit an offer. You dont want insult the builder however be reasonable. Good agent should be able to investigate many opp's for you prior to submitting an offer, also have inside track how builder feels willing to take less.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Thu Oct 2, 2008
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