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.
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.
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
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.
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?
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.