Thread: New Construction, negotiation, and a realtor...

If you are a shrewed buyer/negotiator you can do okay. If you are uncomfortable use a Realtor, it may save you a lot of stress. Track home builders make money on the upgrades. It depends on if you are looking at a base model or one that is done up. Fixtures are easy homeowner upgrades while flooring and cabinets are not but are manageable if you are handy.

However, pricing may or may not be negotiable depending on demand. These tracks are funny animals, they don't always follow national trends. Their sales people usually have one seasoned person and several rookies, they can be quite good. Not all Realtors will know how to deal with this type of purchase either. If you go that route find one who deals with track homes and can show you evidence that they have done so successfully.

BTW: I'm not a Realator.

Whether or not the price is firm is going to depend on the strength of your local market and the only really way to know if this is the case is to hire a local agent familiar with the neighborhood. Even if you live in a market that is relatively stable you should be able to negotiate a better deal with an agent or be confident that you are getting a good deal on a home.

Just echoing what has already been said about the price, it really depends on the local conditions, builder and timing. As a general rule, builders are less likely to negotiate on homes to be built versus spec homes.
Builders won't usually discount the home if you don't use a real estate agent, because they need Realtors to bring them business and if they started giving discounts for not using realtors word would get out.

I agree with the comments made. The best option for you would be to get a local agent. It does not cost you anything and they will know the market and the builder. It is important to interview multiple agents and find the one that best fits your situation. Make an offer, the worst that can happen is that they reject it. If you then decide you still want the house at what they are asking, buy it. They won't turn you away just because you made an offer that was unacceptable. Good Luck.

I think having an agent to represent you would be the best way to go. The builder and their agent are not going to look out for your best interest. It doesn't cost you anything to have a buyers agent so why not have someone by your side who will look out for your best interest.

As far as the price being firm it just depends on what the builders bottom line is. Maybe the listing price is the lowest they are able to go.

Builders will rarely acknowledge a buyer who previously registered with the builder and then brings in an Agent. Meaning, the agent will not be paid any commission.

Unless the agent has a very good relationship with the developer, rarely do they stray from this policy.

Read the registration forms provided by the developer. I found a few loopholes in one from Lennar. They tried not to pay me with a client, and when I asked them if they ever read their own policy they said NO.

Well, I had to be kind and point out their error which allowed me to register the client after they had already been to the community.

Builders hate when people actually read legal stuff, but they learned a lesson. Know the policy!

Always use an Real Estate Agent.
1) it doesn't cost you anything
2) they are protecting your rights
3) a builder has representation; the agent at the center - don't you deserve the same?

Yes, there is wiggle room on the price. Have your agent (refer above), negotiate the price. If the builder says "yes" - great! If the answer is "No" then at least you know you tried. The builder may counter your offer, then you will know where they need to be to make it happen.