Pricing on New Construction? and making offers.

**hutchback** · 03-06-2008, 07:36 AM

My Realtor tells me that builders won't negotiate the price of new construction, but they will add bonuses as incentives.

Is this true?

Also my Realtor is hesitant to offer a seller 10% less than asking. I thought this was typical.

**hasslefree** · 03-06-2008, 01:37 PM

in todays market (depending on your location) but builders are trying to get rid of their inventory. they will lower their price, offer incentives, and bonuses.

if your realtor will not make the offer then they are not performing their duties and you should look for a new one

**JJohnson1985** · 03-06-2008, 02:07 PM

I had a nice informational post, but the site logged me out or timed out so quick that I lost it so this will be short.

Let me preface this by stating that I do not have a license.

Haslefree is correct. The agent has a responsibility to the client.

Builders will move on price but depends on the market. Keep in mind when builders lower a price, the new sold house becomes a good comp for future sells and past sells. The lower price lowers the price for all the houses.

They like to offer free extras and upgraded materials. They also like to buy down your loan or pay discount points. No matter how good it sounds, make sure you know the total cost, and if your payment amount can and/or will change in the future.

Your offer you have to look at it from the sellers point of view also. Is the offer unrealistic and insulting? Would you take one look at it and tell your agent to never show you an offer from this ridiculous person again. You can make any offer though and the agent can suggest, but ultimately the agent must do what you want. Knocking off 10% is not a standard rule of thumb I believe.

Now the agent being hesitant maybe because of the reasons stated in the previous paragraph but it could also simply be because the lower sale price, the lower the agent's commission is. Depends on how moral and ethical the agent is.

This isn't as good as the first attempt that was dissolved into the 0's and 1's abyss.

**Mike Taylor** · 03-07-2008, 05:21 AM

As a general rule, builders are less likely to negotiate on a build job versus a spec home. As was said above, they will offer "free options" and other incentives but typically don't move on the base price of the home.

**VancouverWa** · 03-07-2008, 12:10 PM

Everything is negotiable! It does not hurt to try, the worst that could happen is they would say no. Very rarely do you get a "no", it's usually a "no, but how about this".

**TobyMunk** · 03-12-2008, 01:48 PM

Fire your real estate agent. !!!

If he is acting as a buyers agent for you, he as a fiduciary duty to act in your best interest. In this market you should make lots of offers, if you agent is not willing to to put the work in he does not deserve to make money from you.

The trick is to make lots of well informed low offers to find out who is desperate enough to sell at any costs.

Just as a few years ago the sellers were in the drivers seat, now it is the buyers. Take advantage of that.