How you can negotiate with builders when buying new construction.
Buying a new-construction home versus a resale is a very different process. What are the important factors to consider when buying new construction, and how do you negotiate with builders? I want to share with you what to expect when buying a new-construction house and what you can discuss with builders during the process.
Builders don’t like to negotiate their base prices; they need to keep them similar because they’re building lots of the same model. As long as people are buying their product, they have no reason to haggle over price. However, they are more receptive to negotiating things or credits. For example, instead of asking for a $10,000 reduction in the overall price, ask for a $10,000 credit at the design center that they can put toward a gorgeous kitchen.
You can also ask for a closing contribution. Not every builder will give you credits—it depends on the product’s popularity and the climate of the market, but it never hurts to ask. Be sure to talk about it when writing up your offer.
“Be generous with your construction timeline expectations.”
Pay close attention to the closing costs. Every builder is different, and many large builders push all the closing costs except for the real estate fees and a few others onto the buyer. This can be very expensive and cost you thousands of dollars in extra closing costs that you wouldn’t encounter with a resale home.
Finally, be careful with construction timeline expectations. Let’s say your builder estimates it will take four months to build your home. That’s the goal. In reality, they can never be entirely sure when the house will be completed. Builders have to deal with weather issues, materials supplied in a timely manner, work permit inspections, and so much more. There is a lot to manage, and things don’t always run smoothly.
If you’re thinking about buying a new-construction home, you need an agent at the office that will protect you and negotiate on your behalf. It won’t cost you extra, and could actually save you more money than going without proper representation. We would love to be that agent in your corner. Be sure to reach out to us if you’re looking into new construction or have any real estate questions in general. We look forward to working with you.
