You may attempt to negotiate a builder's listed price on a new construction home, but that may not be the way to truly save money. You could potentially get more in concessions or options without being charged rather than going for a lower price.
When a builder/developer has multiple lots left for sale or upcoming "phases," they are sensitive to creating a past sales history of discounted sale prices. The timing isn't good for them ad they may be looking to get strong sales for the next section of the community. We're not saying that a builder will not discount here and there, but this practice leaves them with a dilemma for future appraisals.
When you decide to purchase a home one of the considerations for you getting the loan is the value of the home you're purchasing. Mortgage bankers use similar properties, and the most recent past closed sales, to establish the amount a lender will lend for that sale.
If a builder cuts a price $5,000 on your home and she has 10 more lots to built a similar model then she may be at risk of impacting her net $5,000 X 10 homes or $50,000 should her appraisals begin to be bench-marked by your purchase.
One way around this is to negotiate for things like upgrades and options, appliance packages, finishes, etc. You get a valuable option and the value of the community remains intact - and this will help you over time because when you go to list this home in the future you're going to want the home in your neighborhood to be valued as high as possible.
This situation is another reminder why you need your own representation when you're purchasing a home, especially when dealing with new construction. The PerfectHouse Team agents will work with you on all of your home options. We present every offer our client directs, but it is after we've educated them during negotiations to be flexible, many times the same dollar value benefit is achieved for our client, just not from a reduced sales price. It's only through experience and education that your agents can provide this - and that's just one of the reasons we remain one of the best teams in the Hampton Roads market.
If you ready to look for your new home, make sure to use our enhanced search features. We have map search and full MLS access - which means that we guide from search to closing all the way to your new home.
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