New home consturctions, how much can I negotiate?

Asked by Roger, KC Mon Feb 18, 2008

I am planning on building a new home, base price is $210k 15k in upgrades, the builder already stated he is willing to throw in some upgrades for free (so far about $1,500 worth) how much should I ask for? I am not using a Realtor so he doesn't need to pay commission to anyone. I was thinking of 5k off the upgrades... is that too high , too low?

Help the community by answering this question:

+ web reference
Web reference:

Answers

2
Stanton Homes, , Raleigh, NC
Fri Feb 29, 2008
Is the builder a national builder or a local builder? If it's a local builder, they are most likely working with a seller's agent, and will have to pay a commission to their agent whether the buyer brings their own agent or not. In this area, the custom builders that use real estate agents often only have a 1% commission savings if the buyer does not bring an agent. The seller's agent gets a higher than normal commission if they are the only agent involved, as they are now a "dual agent" representing both the seller and the buyer, and taking care of paperwork, legwork, and legal steps for both sides. So for a home priced at $210K, in this situation the builder would pay out only $2100 less in commission than in a situation with two agents.

If you're working with a national builder, but don't have an agent, you may be saving the builder a 2-3% commission, which is what they would generally be paying an agent who represents a buyer.
Web Reference:  http://www.StantonHomes.com
0 votes
Christine M, , Moses Lake, WA
Tue Feb 19, 2008
MAKE SURE TO ASK TO SEE A LIST OF RECENT SALES IN THE SUB-DIVISION. SOME AREAS IN THE COUNTRY STILL HAVE SELLERS MARKETS. aLOT OF BUILDERS MAY GIVE ONE UPGRADE EVEN IN A SELLERS MARKET. THEY NEED TO KEEP THE SALES PRICES UP FOR THE APPRAISAL COMPARABLES. YOU MAY GET AN GARAGE DOOR OPENER OR A NICER DOOR IF YOU ASK.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more