I want to build a home in a new subdivision. Is there room for price negotiation in a situation like this?

Question

It's a suburban subdivision, there's a developer, there are display homes... After I pick all my options and I'm ready to sign the papers, can I negotiate price like you can do if you're buying a pre-existing home?

Answer 1

Absolutely you can negotiate price. How much you can negotiate depends on your market, how much demand there is for houses in this price range and how well this subdivision is selling. It is the old law of supply and demand. If there are brisk sales in the subdivision, you might not get much off the house. But if sales are sluggish, you have room to move. Many subdivisions are offering trips, power tools, plasma TV's, gym memberships, ATV's, all kinds of incentives to get you to sign. Be prepared to accept those, or tell the agent to keep that stuff, you want money off the price.

Answer 2

As an old real estate INVESTOR, NOT A REALTOR, I might be able to present you with some insight, so that you can make an intelligent decision . In the case of a new development, and new home, probably not much, HOWEVER,, remember this always : EVERY THING IS NEGOTIABLE !! Now, IF the new home builder has over built ( BUILT MORE HOMES THAN THE LOCAL MARKET DEMANDS/ BUYS)AAAHHHH!!!! Then the price can be negotiated, some-what. IF your home is the last one to be built in that subdivision, AND the builder wants to move / start up a new subdivision, and or his HARD MONEY LOAN / INTERIM LENDING - LOAN is due, AAAAAHHHHHHHH YES !! All this being said ( and a great deal more could be said), The likely hood of such success, is very slim. BUT TRY !!!! YOU NEVER KNOW UNTILL YOU TRY !!!! ASK, all the worst the builder can do, is to say "NO". ? Have you ever had anyone say no, before, to any of your questions? GOOOOD LUUUUCK.
Uncle Wil

Answer 3

The developer will want to show that the house sold in the price range he's asking for in the subdivision. So if I were negotiating, I would offer the price he's looking for but have him throw in extra options. Upgrade the kitchen,bathrooms, floors, landscaping. Have him throw in everything. If payments are still an issue, have him pay points to lower your rate and pay closing costs.

This way he shows a sale in the price range he wants, you get a deal you want. It's win-win.

Answer 4

There may be a bit of wiggle room, but not much. At least nothing like you may find when purchasing an existing home.

Besides that, it's not advisable to work the developer down to the lowest point. He is building YOUR house. Unless you are there 24/7, how would you know if he's cutting down on quality in response to your price niggling ?

I don't advise it. The situation might be different if you were negotiating on one of his models already built, but it's not a good thing to do when he's building FOR you.

Answer 5

Of course. you can negotiate anything when it comes to buying a home. Especially now, with the market the way it is. If there is no agent involved, ask to get the commision knocked off. Like here the commission is 6%. Ask for them to take 6% off of the top.

Answer 6

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Answer 7

Depends on your contractor.....materials...labor.....and 15% on the top. so Once you figure up your materials and add 15% to the top then you should be able to negotiate the labor part.

Answer 8

Yes.