I'm a first-time home buyer and decided to buy a home that is about to be built this fall. The basic price of it is $400,000. We've added $40,000 worth of options and upgrades. They offer 50% discount on options. I want to negotiate the price before signing the contract and I'm quite nervous since I haven't done this before. What would be an effective way to negotiate the price and how much discount is reasonable to ask for?
Thanks!
2007-06-20 03:23:54 · 8 answers · asked by KCA 1 in Business & Finance ➔ Renting & Real Estate
You generally don't negotiate prices on new builds. They gave you 50% off on your options and upgrades. I think your negotiations are done.
2007-06-20 03:27:22 · answer #1 · answered by Always Right 7 · 0⤊ 0⤋
Best advice if you're dead-set on negotiating:
Hire a REALTOR (out of your own pocket for say +-$500), and have them prepare an offer on your local Board of REALTOR-approved forms offering whatever terms you wish to negotiate (i.e. maybe 3% of list price and 75% discount on options.....whatever you think is good). Maybe your agent will suggest a fair offer. You cannot expect the builder to pay your agent any commission since they didn't "procure" the sale, and you could be out of pocket if they didn't accept. They may counter offer you on their own forms and "meet you in the middle." They might accept it. Or they'll reject it. At least you did your part in trying to get a better deal, and you know you pushed them. A new home builder is just like a regular seller in the resale market....Don't "put them on a pedestal."
If the deal doesn't work out, maybe the REALTOR will waive the fee if you let him/her represent you and take you to other communities where the builder will pay your agent.....just a suggestion to solving your dilemma. It's a great buyer's market, so there's nothing wrong with going after a good deal!
2007-06-20 08:30:35 · answer #2 · answered by R.E. Advice 3 · 0⤊ 0⤋
Actually what you can do is ask for price protection and get it writing. If the price of the same home has been reduced by the time the construction is finished, then you want the home at the market value at that time. Otherwise, you pretty much have to accept the base price with discount on options.
2007-06-20 03:38:34 · answer #3 · answered by Anonymous · 0⤊ 0⤋
you can offer "sweat equity" where you do prep work or the actual sanding, staining, painting. builders charge $65-75 per hour for a painter (or more in NYC) and that can be money credited to you. also, see what the cabinet quality is, then call cabinet companies and compare pricing....if you find it cheaper at a cabinet company and get a quote, the builder may cave and use that price in order to do the work.
get EVERYTHING in writing from the builder with signatures adn dates. i've worked for builders and will tell you that the biggest mistake a person makes is accepting shotty work, or incorrect work (cheap carpet, cheap padding under carpet, wrong colors, cheap paint, etc).
set up walk throughs, periodic checks, and a punch.....this is where you write down all that is wrong or not to your liking!
i've had people save 10,000+ on homes because of mistakes.
2007-06-20 03:32:18 · answer #4 · answered by the angry polak 1 · 0⤊ 0⤋
When deciding to buy future construction, you won't have a great deal of leverage, since there are fixed costs involved in new construction. The builder knows exactly what foundation, lumber, roofing, etc. will cost, plus he knows pretty accurately what amount of labor and subcontract costs he has. Give it a try, but don't expect a great deal of cooperation here.
2007-06-20 03:28:29 · answer #5 · answered by acermill 7 · 0⤊ 0⤋
Hire a Realtor! Buyer services are free to the buyer, don't take the risk of making an expensive mistake when you can get buyer representation at no cost to you!
2007-06-24 01:28:08 · answer #6 · answered by exitbrian.com 2 · 0⤊ 0⤋
in case you purchase an latest domicile that the builder equipped for somebody else and have been given "caught" with- you will get a much greater suitable deal. in case you opt for them to construct a house from scratch in simple terms on your order then you certainly pays the utmost value--they gained't build except that's nicely worth their mutually as.
2016-10-08 21:19:54 · answer #7 · answered by Anonymous · 0⤊ 0⤋
you need to shop around with different builders in the area, ask lots of questions see what the different builders in the area are discounting then with the info play one builder off the other
2007-06-20 03:59:53 · answer #8 · answered by goz1111 7 · 0⤊ 0⤋