Are you in the market for a new construction home? If so, you may be wondering if the price is negotiable. After all, buying a home is a significant investment, and you want to get the best deal possible. The good news is that negotiating the price of a new construction home is possible, but it may require a bit of strategy.
Builders are often reluctant to negotiate on the price of a new construction home. They don’t want to set a precedent that they are willing to offer discounts to buyers, as this could lead to other interested parties seeking the same discount.
However, this doesn’t mean that negotiating is impossible. There are other aspects of the home that you may be able to negotiate, such as the floor plan, appliances, or other home features and the direct price of the home.
I have negotiated home prices when homes were selling at their peak in our market and, of course, when sales were down. As an agent specializing in new homes, I would like to break things down into smaller segments.
What Are New Construction Homes?
New construction homes refer to homes that are built from scratch, rather than being pre-owned. A developer or builder typically builds these homes, and you may have the opportunity to customize certain aspects of the home, such as the floor plan, layout, or design.
New construction homes come in various sizes and designs, and you’ll likely have the opportunity to tour model homes to get a sense of what’s available. The model homes may have upgrades or additional features that are not included in the base price of the home.
Overall, new construction homes can be a great option if you’re looking for a home that’s move-in ready and customizable. While negotiating on price may be difficult, there may be other aspects of the home that you can negotiate to make it the perfect fit for you and your family.
Related: 12 Reasons Why You Need a Buyer Agent for New Construction
How to Negotiate New Construction Homes
Negotiating the purchase price of a new construction home is an art. It requires a delicate balance of knowing when to push for a discount and when to accept the builder’s asking price. Here are some tips to help you negotiate the best deal on your new home.
Know What’s Negotiable
Before you begin negotiations, knowing what’s negotiable and what’s not is essential. Typically, builders are more willing to negotiate on upgrades rather than the base price of the home.
For example, you may be able to negotiate for higher-end appliances or upgraded flooring. However, it’s unlikely that the builder will reduce the base price of the home when there is a high demand for the community or specific model design.
Do Your Research
To be an effective negotiator, you need to do your research. Find out what other new construction homes in the area are selling for and what features they offer. This information can help you determine if the builder’s asking price is reasonable and where you may have room to negotiate.
Knowing all of the competing builder communities and available inventory is where you will gain the best deal ever. There are hidden opportunities in any market and location.
Builders reserve the right not to share all of their homes on public forums like MLS, Zillow, Homes.com, and Realtor.com just to name a few.
Note: If you would like to be added to my preferred client list of New Construction homes across the state of Florida, click here and answer a few questions so that I or one of my new construction partners can help you.
Timing is Everything
Timing can be critical when negotiating the purchase price of a new construction home. Builders may be more willing to negotiate when they have unsold inventory or when they’re trying to meet a sales quota.
However, if the builder has a limited number of homes available, they may be less willing to negotiate.
PRO TIP: Always ask when the builder’s end of year is. They want to close out with the best numbers possible trust me!
Be Willing to Walk Away
One of the most crucial aspects of negotiating is being willing to walk away. If you can’t come to an agreement with the builder, it’s essential to be prepared to walk away from the deal.
This can be challenging, especially if you’ve fallen in love with the home, but it’s better to walk away than to overpay.
Going back to the beginning will help you plan better and wiser. Here is my printable that can help you organize and prioritize what is most important to you!
Get Everything in Writing
Once you’ve come to an agreement with the builder, make sure to get EVERYTHING in writing. This includes the purchase price, any upgrades or discounts, and the timeline for completion. Having everything in writing can help prevent misunderstandings and ensure that everyone is on the same page.
Most builders I work with do not have a problem with this. They want this to be an amazing working relationship. Although I like to advise they are working with 50 or more clients at a time and it can be a lot to keep up with very specific details on the build-out of your home.
Conclusion
In summary, negotiating the purchase price of a new construction home requires research, timing, and a willingness to walk away. By knowing what’s negotiable, doing your research, and being prepared to walk away, you can negotiate the best deal on your new home.
