New Construction...negotiable?

Question

I am looking at a newly constructed house and it is a little over what I am looking to pay....How negotiable are newly constructed houses.  I know the market right now is in my favor.

Thanks

Account Closed · Answer

Know your local market and know about the project. Forget the national headlines as not all builders are having problems selling. There are certain points in a project when the builder is more open to incentives (at launch when they need to create a market, at the end when they want to clear inventory so they can move on).

Offer the price you want as the worst they can say is no.

John Corey

Joshua D. · Answer

Builders are getting stuck with a ton of properties since the bubble has come crashing down.  You can certainly negotiate.  Now a days, builders are throwing in tons of perks to get their properties sold.

Let us know how it goes!

Account Closed · Answer

We have a very strong market here in Austin and most homes are sold before the slab is poured.  My neighborhood alone has a 200 person waiting list for each of the 5 builders here.  But yes, they are still flexible.  If you don't have a realtor GET ONE!  Many people think buying new they don't need one or it will hurt them.  On the contrary a realtor might know what incentive the builder is offering. 9 times out of 10 they are going to be able to negotiate a better deal.  Keep in mind that the sales person works for the builder, not you.  Even though the market is hot hear most of these builders are in other states where it's not so hot so even thought they are making money here the whole corp might be bleeding.  It's all negotiable.

N/A N/A · Answer

What i'm seeing in my city, Mobile, Alabama seems to be similar to what others are saying.  The smaller builders seem much much more willing to negotiate and make deals happen rather than the large companies like Mitchell, Adams, and DR Horton.  One recent situation (this month) a builder we work with had a fine new home 1387 s/f listed for 149,900, lowered the price to 144,900 as soon as construction was complete, and has gotten several offers and is willing to pay closing costs, install a fence, and all appliances for that price.  
However, another small builder we work with has already priced his houses at the lowest possible price, to beat Mitchell, the regional builder, and he is not negotiating at this time.

Ryan Standage · Answer

there are several situations that would require a builder/developer to HAVE to negotiate, among the few i know are 1- the builder is just starting a development and has to sell a few units fast right off the bat to get access to the "bulk" of his financing to finish the project (these can be amazing deals).
and 2- during a slow market builders have to sell a bare minumum of homes just to keep the doors open untill things pick up again.  here is phoenix i hear on the radio 1 or twice a week of huge incentives offered by builders to get people in to buy a home.  You can lower the house purchase price AND get up to 20K cash back for upgrades right now in phoenix.

N/A N/A · Answer

Like John Cory said there are points in a project when the developer is more willing to negotiate. Certainly the best time to get a price reduction is during the beginning phases when the developer is trying to generate interest.

One of the developers I work with here on Roatan has stopped giving discounts now because he is 75% sold out and traffic is brisk so no discounts.

Brian Ristola · Answer

I just came across this post...Harry, where in Mass are you?   How is the market currently?

N/A N/A · Answer

Here in Southern California you can totally negotiate. I went to a few new developments in the Inland Empire recently and basically negotiated $50k in savings!

Many offered 2 years free HOA as an incentive. Also, some free upgrades and appliances and not to mention the price itself. They need people to buy.

Also ask if any properties might be falling out of sale soon. Many people buy but then suddenly drop out of the purchase and that's where you can come in and buy it cheaper and with possible all the upgrades already in tact.

N/A N/A · Answer

I know in Central PA they are offering up to 11,000 on closing costs, 1 % on tax stamps, and other perks such as new decks, accessories 1/2 off ect.

N/A N/A · Answer

I do alot of New Construction right now I'm running two projects..I'm in Mass. by the way.  All winter long we were dyin!! and the guys i work for were very willing to take less..But the last three weeks i've sold 5 of there properties all at full price  Every one of them  The market is changing in my area