Like many other home buyers on the market looking to buy real estate, you’ve probably considered the idea of buying a new construction home. Unlike buying an existing home where there are lots of room for negotiation with the seller, there are few cornerstone on which builder will try to negotiate the sale of a house. Find out in this video:
Every home buyer is looking for a great deal. Even though most builders are less receptive to negotiating the price of the home, it doesn’t mean you won’t be able to get a great deal on your new home. You’ll just have to approach negotiations from a different angle. Crossing out the price on the negotiation table, the two best things to negotiate are incentives and upgrades.
Like what Anna Catron has said on the video, most of the time builders offer incentives to home buyers.
What you need to find out:
- What are the available incentives offered to buyers?
- What’s the deadline for the incentive?
- Are there any free upgrades?
This incentive may come as money to help buyer cover closing costs. This amount credited to you at closing is still negotiable; you may be able to get more especially if you are really good at negotiating. Also, more often than not, the incentive can only be availed if you finance your new home using the builder’s preferred lender.
Aside from closing cost assistance, you’ll have more room for negotiations when it comes to upgrades. Builders are more flexible in this, you may be able to get one or two free upgrades or items added to the price agreed upon. You also need to negotiate wisely because you might find some upgrades are priced competitively while others are not. Sometimes a $3000 credit to closing costs is worth $5,000 of upgrades at their prices. If there is any room for them to negotiate you’ll want to do it before you sign the contract.
Here are just a few of the things you can negotiate that could significantly lower your total costs:
- Closing costs
- HOA fees (if applicable)
- Upgrades on finishes
- Homeowner’s insurance.
It’s always better to work with an experienced new construction home agent to help you work your way through the buying process because though the builder’s salesperson is very welcoming and accommodating, the on-site agent still works for the builder’s interest. Before you sign any contract, find an agent who is familiar with the neighborhood and who has experienced in new construction transactions, he/she would be familiar to several builders and their contracts. The buyer’s agent service is free and will represent your best interest.
READ MORE:
BUYING NEW CONSTRUCTION: WHY YOU NEED AGENT REPRESENTATION
Looking to buy? Are you a first time home buyer? We can help! The J Michael Manley Team go above and beyond to help you find the perfect home, from searching the right property that meets your real estate needs until you finally sign the deal. We will walk you through the process and make sure that you get the best deal possible. Are you ready to find the right home?
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