So my wife and I want to build in a brand new development in a nice area. The scary thing is, we will only be the second home in the development, so there is some risk involved. The deal is, the land developer and the builder are doing end loans and we basically pick the floorpan and everything we want in it. One of my questions is, do we have negotiating leverage with the builder due to the bit of risk involved building in this new neighborhood?
I've never bought OR owned a home before so I'm not even sure if I can negotiate on a new construction home. They are basically giving me a price for what that home costs and the upgrades we want to put in it are obviously extra. Is this negotiable? I just don't want to get taken advantage of seeing as we have never owned a home before.
Thanks in advance for help!!
Austin, everything is negotiable including this purchase. You do have leverage if few homes have sold, but also possibility of being one of a handful in a broken development. Weigh the risk. Also, check the asking price against comps. Make sure you're comparing apples to apples.
Not to knock the developer, but they have the upper hand in this situation and as a green prospect you have to get educated...maybe you already did in the weeks since your post.
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