.,  in Maryland

How much can I negotiate a Ryan Home in the Villages of Dorchester?

Asked by ., Maryland Fri Jun 6, 2008

How much can I really expect to lower the price of a new townhouse built by Ryan Homes in the Villages of Dorchester? The base price was in the low $330's plus a $7900 elevation fee and $40k in options making it a total of ~$380k. They are offering half off options or $9k in closing costs if I use their mortgage company but I plan on using my own credit union. Would getting it for $350k be unreasonable? Thanks!

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One thng you need to do if you don't have a realtor when buying any new home through the home builder is to get a home inspection. I know it's a new home and it sounds dumb, but I insist on my clients getting an inspection and you wouldn't believe what pops up. One other thing is a lot of these communities are still a bit overpriced in this market. You might want to look at the comps for area properties. I have a client that I am working on a short sale for that purchased a new home in March of last year. They are 100k in the hole. Try to negotiate the very best deal you can and be willing to walk away if it isn't to your liking.
0 votes Thank Flag Link Tue Jul 1, 2008
I went to buy the villa, they wanted me to buy before end of june for free morning room and extra 8 foot extension. they gave me half off options but nothing free. i called back told them to sell me the house with my options at 342k they said they can do so. SO i said bye bye. Also living there thet footagey charge a $31 front footage fee and $ 103 dorchester fee and $ 68 home assocation fee and at least 350 in monthly taxes. WTF
0 votes Thank Flag Link Fri Jun 27, 2008
Day1yun, my fiancee and I are very interested in purchasing a home in this community within the month. To be specific, we are interested in the 2 car garage townhomes, not the Villas. I think we will be going through the house lender in order to receive the incentives. We will be taking the $9000 closing assistance, and we will only be adding a few options, at full cost to us. A sales rep called me yesterday and informed me that they are adding a new incentive; this includes free stainless steel appliances, and free granite kitchen countertops. That all sounds wonderful, however I am not satisified. I think there is still room to negotiate. I don't believe they will budge on the base price, but I'm going to try to negotiate for free hard-wood floors, a value of about $8500.

I'd be interested in speaking with you off of these forums in hopes that we can share our experience with Ryan Homes in order to leverage some weight with negotiating with them. Let me know if you want get in contact.

0 votes Thank Flag Link Tue Jun 17, 2008
Thanks for all the help! I am going to wait another month or two to really start negotiating with them. However, before I go in I am trying to get the best understanding of what is possible and what isn't. NVR Inc's 2nd financial quarter ends in June. Would it be best to start negotiating at the end of June? All the incentives Ryan homes is offering is contingent upon using their lender. Is it normal for builders to help with closing costs even if the buyer uses their own lender? I've heard of some horror stories about nvr mortgage and would rather use my credit union.
0 votes Thank Flag Link Tue Jun 10, 2008
If you are a non contingent buyer I can't imagine that the builder would risk losing you if you are close on price/terms. So make the offer that is best for you and see what they come back with. "He who ask not, receives not".
Good Luck
0 votes Thank Flag Link Fri Jun 6, 2008
If it is still June of 2008. The builder probably has a lot of inventory that he needs to sell. By all means you ask your realtor to present the offer to the builder.
0 votes Thank Flag Link Fri Jun 6, 2008
I guess the bottom line is that I want to pay 350k for a particular house with upgrades. Base price of the house is $330k and the particular elevation costs $8k. Making the price with no upgrades $338k. Can I just say "I want that house with these upgrades for $350k"? I priced out the upgrades with the builder and it came out to about $35k. I'd essentially be asking for $35k in upgrades for $12k. Although it may not be the same to the builder, to me thats the same as asking for $23k off the house. Or should I ask for specific upgrades to be free or discounted?
0 votes Thank Flag Link Fri Jun 6, 2008
Another thing to remember in this transaction is that buying from a builder your closing costs are much more than if you are to buy a resale. In most transactions the transfer and recordation taxes are split equally between the buyer and the seller. In this case, you are more than likely to be paying the entire amount. So ask them to pay all of those costs as well.

You are much more likely to get all of the upgrades and for resale, this is important as well. Ask for everything you can because they are probably not going to lower the price. And if you decide to buy in that community you don't want them to be lowering the price because then your house value is affected as well. Right now you are thinking as a buyer, but at some point down the line you may be the seller of that very house and you don't want to know that your neighbors got a lower price and thus has affected your value very directly.
Also, builders charge much more for upgrades than if you were to ever do it yourself. How many of the other units have sold? You may also want to ask how much those sold for...
0 votes Thank Flag Link Fri Jun 6, 2008
Sorry, I'm still a bit confused as to what the difference between negotiating the purchase price vs negotiating incentives are. Lets say the upgrades normally cost $30k but I'm able to negotiate half off upgrades even without the use of their mortgage company. To me whether I get $15k off the purchase price of the house or get half off those upgrades doesn't matter because I'd be paying the same amount either way.
0 votes Thank Flag Link Fri Jun 6, 2008
Yes, it really does matter to the builder. When they offer half off the upgrades they are still making some money on them or at least covering their cost. If they throw them in for free it does affect their bottom line. They usually factor in that they will have to make concessions in this Buyer's market and would rather give some upgrades than lower purchase price for the resons I stated in my earlier posting. They may move a little on price but $30,000 could be hard to negotiate especially with throwing in those upgrades. Are you qualified for the $380,000 purchase price? How about asking for more in closing costs? That will help you save money at settlement
0 votes Thank Flag Link Fri Jun 6, 2008
I am not working with an agent. Isn't offering free upgrades essentially the same as lowering the price? For instance, they want to charge $7k to upgrade the entire main floor to hardwood flooring. Isn't asking for a free hardwood floor upgrade essentially the same as lowering the total price of the house by $7k? I'm thinking of everything from my perspective, it probably differs in the way they document everything though.
I was planning on going in and saying I want this house with upgrades A, B,C, and D for $350k. Does it really matter if i pay for upgrade A but get B, C, and D for free or pay for upgrades A & B and get C & D for free as long as its $350?
0 votes Thank Flag Link Fri Jun 6, 2008
Most builders would rather give free options/upgrades than lower the purchase price since they want the entire community to be valued/appraised uniformly. If they accept $30,000 lower on one home it will affect the appraisals of the rest of the homes they build in there. In this market, I find that builders are certainly willing to negotiate some items and using your own lender may be a point that they will conceed especially if you can prove to them that their own mortage company cannot match what your lender can do for you. Get a good faith estimate from your credir union to show them. They will still want to use their title company for settlement so ask to see their charges and compare to others.
Remember, the person in the Ryan sales office represents the builder's best interest not yours. So if you do not have a real estate agent representing you, you will have to press these issues yourself. Educate yourself first: Find out what other homes in Dorchester, similiar to the one you want to buy, have sold for. Since there are many other new communities in that area check them out also to see what they offer and their pricing. Then when you go back to Ryan with a proposal you will be an "informed buyer" and know what your best course of action will be.
Much Luck!
0 votes Thank Flag Link Fri Jun 6, 2008
Are you working with your own agent on this or just going directly through the builder?
The thing to remember with new home sales is that they are not very likely to lower the price. If anything they will be more likely to offer you more incentives, upgrades, etc.
The reason they do this is so it helps to protect as much as possible the comps they have throughout. It is very easy for someone to find out how much was paid for the home and they don't want to have low prices because then all of them would have to sell like that.
So if you are expecting them to lower the price, I would talk to your agent about other ways to negotiate this. I'm not familiar with the exact project you are referring to, but new home sales are slow right now in general. Also, talk to your agent and hopefully they have experience with new home sales and can help guide you with deciphering what the builder is telling you you have to do for incentives and what can actually be obtained...
0 votes Thank Flag Link Fri Jun 6, 2008
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