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9/22/2017 12:11:25 AM
Posted: 8/20/2005 6:44:14 PM EDT
Wife and I took a long look at a new housing development today. We were bowled over with the quality of the homes. The question is... How flexible are the homebuilders when it comes to dealing on new construction? This is the kind of

I'm not talking about walking in there and offering $10,000 less... Just what - if any - leeway does a builder have, cash-wise?
Link Posted: 8/20/2005 6:48:49 PM EDT
doubt you will get a deal on new home construction. You might have gotten a deal if you would have put down money to hold the place while it got built and then sold your option at closing. Then you could have gotten whatever appreciation on profit. Now that the house has been built you are likely paying the padded cost because all the developers and contractors always underestimate the budget. If you are in a high appreciating area, you could go interest only and negative cashflow for a short term if you think you can wait it out.
Link Posted: 8/20/2005 6:54:43 PM EDT
you can usually get your closing costs paid or nearly paid if you go through a lender the builider recommends. I got $4,000 towards mine, the builder's lender of choice sold the loan after 30 days anyhow. Free money
Link Posted: 8/20/2005 6:56:58 PM EDT
[Last Edit: 8/20/2005 7:07:39 PM EDT by zoom]
My local paper prints the prices of homes sold, so your local paper might also. If you can find an archive(maybe at the local library) or a way to search them(maybe at the paper's web site), you can look to see what the cheapest house in the neighborhood sold for to use as a reference. Keep in mind that usually as neighborhoods become established, the prices go up since it's more of a risk to buy a house in a new one.z

ETA: What in the world is wrong with offering $10k under list? I've bought and sold a lot of real estate for other people, and my first offer has never been more than 90% of the asking price. I have made many offers for less than 75%, or in a few rare cases less than 50%, of the asking price. More often than I expected, I got the property at or slightly above my offer because the seller needed to get rid of it. Keep in mind that interest on a $100k investment at 10% interest rate (since it's a business) is over $800/month. Each month they wait costs them another $800 or more. They may jump on the chance to sell the house today for $2k (or whatever) less rather than waiting on someone that might pay them more later. Don't let emotion cloud your judgement. You said the houses were better than you expected, but sleep on it before offering more than you think you can buy it for.
Link Posted: 8/20/2005 7:03:09 PM EDT

Depends.

If you make an offer on a slab that won't be ready for 4 months, you may have better luck than one that is finished and empty.

We did that 4 years ago. Made an offer on a house just being framed by a national builder. About 10% lower than "sticker".

Can't hurt to try. They sure aren't going to wiggle any if you don't ask.

Also, get your own agent to act as a buyer's agent. They "should" have a better idea of the market. Don't just use the guy the developer pays to sit in the model. He is not your friend.
Link Posted: 8/20/2005 10:39:46 PM EDT
Thanks for the replies, all!

Stormtrooper That's pretty much what I figured.

AssaultRifler I have family in the finance business... Doubt I can go that way, but who knows?

zoom They offered a $7k credit on an already built house (spec house) in the development and I might just (next week, don't want them thinking I'm desperate ) ask them if they can better it as an incentive to get me to buy now. I am decent with the "wheel and deal" game with cars but only have our current house to go by so far. We got a great deal on it but this is different. New. And worth a LOT more than the house we're in now.

Bubbatheredneck If the spec house is sold when we get there next week (and we still really want a place in this development) that might be the way I go, or try to go.

Thanks again for the replies. We're excited about the possibility of some new surroundings.
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