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New home purchase

T

Triforceofcourage

Platinum Member
I am interested in a new house that I like. However, I created a budget for myself and need the house to be 200k. This price will allow me to be comfortable with all of my expenses. This is new construction and I am working with the builder. They have already discounted the house 30k to make it 220k.

I went there for the first time today and the salesman showed me around. I asked him if it was possible to drop it another 20k. He said no. I didn't really make an issue of it and he said he would call me again this week for a follow up to see if I want to go forward.

Think it would be possible to get him to drop it another 20k if I press it? Will builders negotiate on price or is it a take it or leave it game?
 
All the builders in my area will of course do some talking as things arent selling very quickly here. Sure they wont want to come down 20k but maybe they can take off a few extra things that have been added on? Fancy light fixtures, crown molding all those little upgrades knock the price up a little so see what they can do for you.
 
Tell them to drop it 30k or you will walk. Stay absolutely firm on this until they offer to drop it 20k and you finally give in.
 
What do you have to lose by asking? If you are not going to buy it at 220 anyway, then just go for the gusto and try to get it at 200. Worst they can say is no, then you go and look elsewhere.

KT
 
You could probably compromise around the 210 mark, but to be honest if it's already been discounted 30k pushing for another 20k may just lose you the house.

Depends on how badly you want it, I guess.
 
Make the $200k offer, but you have to be ready to walk away if they say no. They will never lower the price if they think they have you hooked at $220k. Also, consider the risk of buying beyond your budget and be smart.
 
Originally posted by: v1001
Wait it out. They will be down $50,000 or more soon enough. And I kid you not. Nothing is moving. They sit and sit and sit. A lot of these builders are going bankrupt. They wont let you see how much they are sweating but they are desperate. Maybe selling one or two here and there. I've found brand new houses in different states that are selling for less than $80,000. That used to be double or triple that. Just think of how you are going to feel in 6 months or a year when there are still new homes for sale next door and your new neighbor bought it for $50,000 - $70,000 less than you. I've literally watched houses drop $10,000 a month for months on end. Thank god I never bought them back then.
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I've heard on NPR of people being on the hook for half a house after the builder went bankrupt.
 

If there has ever been a buyer's market in housing, it's now! I have no idea on what basis the builder priced the house at $250k to start with and therefore no way to know if the $30k "discount" is real, but (as mentioned earlier) not many houses are selling right now and I'd think many builders will have to drop prices on finished unsold homes just to avoid the carrying costs. I'd let the builder finish the house (I agree with her209) and then see how $200k sounds to him. I'd also look for other alternatives (to avoid "falling in love" with this one house) and line up my financing now.

Good luck!
 
Originally posted by: Triforceofcourage
Think it would be possible to get him to drop it another 20k if I press it? Will builders negotiate on price or is it a take it or leave it game?
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I guess you'll find out when you walk on the deal...
 
Originally posted by: her209
Originally posted by: Triforceofcourage
Will builders negotiate on price or is it a take it or leave it game?
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If you can't afford $220K, then you can't afford it.
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I have to agree here; $20K on a 30 year mortgage does not make much of a difference in a monthly payment

With that said, my wife and I purchased a new home last year. The builder gave us a free finished basement and some money towards closing as an incentive. I tried to negotiate further by asking for 50% off all options we had selected; they would not budge. I even threatened to walk away.

Despite what you see on the news, some areas are still selling homes; maybe not as fast as they were being sold before, but people are still buying.

I was told that builders will generally not budge on the base price of the home. I've been told that they may budge on extras like options
 
Originally posted by: VinylxScratches
You're getting a new house built when there's tons of foreclosed homes you can get for cheaper?
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Ssshhh, stop pointing out a decent argument.

This is ATOT for a reason.
 
People can be weird. My realtor told me that she had a client who walked over $200. I got lucky because apparently the seller and I were both straight to the point people. It was quick and painless and they knocked 5% of the price off.

It's a good time to be buying, but don't make the seller/builder sour. A friend told me to offer 75% of what they were asking for my house, but I didn't. I asked my realtor after we closed and she said I could have lost the house with an offer like that. Be reasonable.
 
Originally posted by: Triforceofcourage
I am interested in a new house that I like. However, I created a budget for myself and need the house to be 200k. This price will allow me to be comfortable with all of my expenses. This is new construction and I am working with the builder. They have already discounted the house 30k to make it 220k.

I went there for the first time today and the salesman showed me around. I asked him if it was possible to drop it another 20k. He said no. I didn't really make an issue of it and he said he would call me again this week for a follow up to see if I want to go forward.

Think it would be possible to get him to drop it another 20k if I press it? Will builders negotiate on price or is it a take it or leave it game?
Click to expand...

You will be better of getting concessions such as appliance and or closing cost.

The developer is better of doing this because he wont kill the comps in the area, if you buy a $220K home for $200k it will show up in the MLS for all the appraisers and Realtors to see so it may be tougher and tougher for him to sell the other homes for asking price.

One last thing you asking the agent means nothing, put it in writing (offer).



 
you really believe that whole "we've dropped it 30k already" line?


have you ever dealt with a salesmen in your whole life?
 
Originally posted by: Gothgar
you really believe that whole "we've dropped it 30k already" line?


have you ever dealt with a salesmen in your whole life?
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If it's been listed on the MLS, the price reduction will be noted.
 
Give your lower offer but prepare to walk away. Your realtor doesn't care about you. They just look at the $$ from the commission.
 
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