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Old 10-26-2009, 08:50 AM
 
130 posts, read 386,985 times
Reputation: 45

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A couple of days ago - we finally made an attempt for some negotiations with the house-builder. Its a brand-new house,to be built and might be ready by Jan-2010. The advertised base price was 245K and after some negotiations,we got it down to 240K. with some "FREE" upgrades including the lot premium, split kitchen and tile flooring throughout. I'm still not comfortable about the price,nor I've talked anything about the closing costs to the builder.

My asking price to the builder was 230K,with all the upgrades. The builder has been BS'ing that they have sold MANY houses and not many lots are free. From what I've been offered as available lots, ONLY one has been taken. I'm not sure about how the community as a whole is doing there.

My questions are:

1. What would be the best strategy to move forward ?
2. What am i missing here?
Any relevant suggestions will be helpful. I'm trying to take less-emotionally charged decision. My current mood is, if i get this house at 230K + upgrades + builder paying the closing costs, it would be pretty darn good.
If we don't get, its perfectly fine with us.

PS# I do have a real-estate agent, but I'm opening up this to forum so that I get more insights into this. Agent as a person can only know somethings..

Thank you all for your invaluable advice!
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Old 10-26-2009, 09:46 AM
 
Location: Round Rock
372 posts, read 1,150,730 times
Reputation: 74
I think you have done pretty well to get them to reduce the price to 240K and waive the lot premium and get some free upgrades. I'm guessing the lot premium + free upgrades is worth about 7 to 10K. See if they will work with you on closing costs. Does your realtor know what homes have been selling for in this neighborhood? That would give a better feel for how far you can push the builder.
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Old 10-26-2009, 10:03 AM
 
130 posts, read 386,985 times
Reputation: 45
In the builders books they are worth 13K!. In my book,they are probably worth 8K.
yes, I'm going to ask them regarding the closing costs.
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Old 10-26-2009, 02:11 PM
 
Location: Avery Ranch, Austin, TX
8,977 posts, read 17,584,060 times
Reputation: 4001
Quote:
Originally Posted by didadi View Post
In the builders books they are worth 13K!. In my book,they are probably worth 8K.
yes, I'm going to ask them regarding the closing costs.
Is this in HH where you were looking before? Just curious.
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Old 10-26-2009, 02:22 PM
 
130 posts, read 386,985 times
Reputation: 45
10scoarchick - Not in HH. I kinda eliminated that area considering the mixed development coming up there. Are you thinking / getting quotes from HH area?
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Old 10-26-2009, 02:40 PM
 
Location: Avery Ranch, Austin, TX
8,977 posts, read 17,584,060 times
Reputation: 4001
Quote:
Originally Posted by didadi View Post
10scoarchick - Not in HH. I kinda eliminated that area considering the mixed development coming up there. Are you thinking / getting quotes from HH area?
We're happy in Brookside @ Avery Ranch...but the discussions of the road extensions connecting 620 to 45 had me curious about the area in general. I wish I had some input for your situation but we bought a 4-year-old house last year. Good luck with your search!
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Old 10-26-2009, 03:54 PM
 
Location: The Republic of Texas
78,863 posts, read 46,731,874 times
Reputation: 18521
There is absolutely no problem negotiating your value and cost with any builder. That is how your going to find the one you click with.

My suggestion would be to stay away from the big fast paced tract neighborhood builders.
Smaller builders are more accommodating and will work a lot harder for your business.
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Old 10-26-2009, 04:40 PM
 
1,961 posts, read 6,131,401 times
Reputation: 571
Quote:
Originally Posted by BentBow View Post
There is absolutely no problem negotiating your value and cost with any builder. That is how your going to find the one you click with.

My suggestion would be to stay away from the big fast paced tract neighborhood builders.
Smaller builders are more accommodating and will work a lot harder for your business.
IMHO; they will all be willing to work with you at this time. I would pick a house because you like it. Make an offer, the worst thing that happens is that the builder will say no.
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Old 10-26-2009, 08:44 PM
 
130 posts, read 386,985 times
Reputation: 45
Yes, we do like the house. But, thats it. If I do not get a good deal on it, or if I miss it , thats fine with us. I want to be as less emotionally attached with this stuff as possible. Its difficult!
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Old 10-26-2009, 09:11 PM
 
1,148 posts, read 2,784,250 times
Reputation: 639
Best strategy in buying real estate is location, location, location. Buy location first and worry about upgrading everything to your specifications later.
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