To-be-built Home - Negotiation on Base price Design studio options

Asked by Forumuser1, Concord, NC Tue Apr 19, 2011

I am planning to buy to be built home by a reputed builder and he is not ready to negotiate on base price and design studio options other than what he's already offering is 5% of home price.
So, can I able to change the agents until I find the right one who can well negotiate with the builder on base price and options, is it possible?
How to find a pro who does the job, because whoever agents I talked to they are upbeat and say they can negotiate well and feel so optimistic but not sure if they can deliver the goods.

Please advice. Thanks.

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Bill Eckler, Agent, Venice, FL
Tue Apr 19, 2011
BEST ANSWER
Forumuser,

The name of the game with builders is management tells all sales staff that "the price is the price, is the price." In other words, they will not negotiate........but we know otherwise!

If you approach buying a new home from a serious buyer's stand poing you stand a much better chance of geting the builder's attention. Our recommendation is to see all of the major builders in your area, collect their pricing information, design studio options...review this information to determine the best value for your money and use this comparison information as leverage with all other builders. Most builders will resist dropping their prices but they don't want to lose a serious buyer to another builder. You need to build your case as a serious buyer and you need to know the competition.

Every day sales people normally have not authority to offer a discount but the higher you go up the chain of command the greater your chance of creating movement. Always go into this scenario with your eyes wide open...and the best way to accomplish this is to get "pre-approved" for financing before you meet with the representative. By doing this you remove one element of "smoke and mirrors" that you will not have to worry about later since numbers can be used to twist and confuse many issues.

It's unlikely that you will be able to get a builder to negotiate their base price because they need to be loyal to the previous customers. Imagine the problem that would be created if every new home was decreased in price. What would this do to the values of homes in the community? By focusing on the design package and upgrades you may be able to get closer to your goal. Additionally, become informad about the previously sold and closed properties. By doing this you will have an awareness of what your reasonable price point should be.

I hope this information is helpful.

Bill
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Daniel Fisher, Agent, Charlotte, NC
Sat May 14, 2011
Skillful negotiation benefits from understanding the builder's profit centers - where they have some lattitude to cut their profit margins. Base price is not one of them because it is what they use to justify future sales. There are many items that builders would charge buyers purchasing without representation that they do not charge our clients....

Would be glad to chat if you are still in the market.

If you have a full time agent with a Masters degree in Planning with Finance and over two decades of experience, working for you, you will likely do better in negotiations. I'd be pleased to provide that service. ...and if you like this answer, please give it a "thumbs up".
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Nathan Wolf, Agent, Charlotte, NC
Thu Apr 21, 2011
If the seller/builder is UNWILLING to negotiate, then NO agent can MAKE the seller/builder negotiate.

Find another builder, not another agent. The agent can only negotiate if the seller is willing to do so.

I have many custom builders who are willing to sell you a base price home, then let you select your own products and features, from their design studio, or YOUR own purchases. So, if you want a lighting package from a different store like Lowe's or you want to buy your own appliance-- go for it. They give you a budget, and you can spend it HOWEVER you want to spend it.

So, there are options for you. Unfortunately, many builders are stuck in the mindset that they should make a ton of money because they make it "easy" for people to sign on the dotted line. But an educated homebuyer like you can have your agent find a different builder that is a better fit for you.

Call if you need help.

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Nate Wolf was recently named a FIVE STAR REALTOR by Charlotte Magazine. He is a top producing real estate sales broker, representing both buyers and sellers. He is a member of the National Association of Realtors, The Charlotte Regional Realtors Association and the Carolina Multiple Listing Services. He is licensed in multiple states and serves all areas of Metro Charlotte from Lake Norman to Lake Wylie and Uptown / Center City to SouthPark and Ballantyne.

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