Is it possible to negotiate with home builders for new construction? (how much, landscaping) - Houston - Texas (TX) - City-Data Forum

lane_change · 02-26-2009, 06:57 PM

I am getting ready to build a new home and was curious if it is possible to negotiate with the builder once you pick all your upgrades, lot, floorplan, etc...

Right now, we are looking at a house, we have done the ernest money, we have been to the design center and have chosen our upgrades. Our total price has came out to $306k roughly...and the dealer is offering $20k in incentives, which will make the price $286k.

Now we are supposed to meet with the builder to finalize everything with a new complete purchase agreement, but is it possible, or likely that we can offer a lower amount, such as $275-280k for what we want, and finalize the deal? Or is that just not likely to happen? I understand that you can always ask, and try...but has anyone done it, and is it realistic to hope to negotiate with a builder before we finalize everything and pay for a portion of the upgrades.

Thanks to anyone who can offer assistance, just curious to know how it went for those of you that tried, or did negotiate with a new build.

Thanks,
Scott

chris_ut · 02-26-2009, 07:32 PM

It is a lot easier to get them to throw in additional free upgrades then to drop the price from my, albeit limited, experience in having bought 2 new construction homes.

usc619 · 02-26-2009, 07:48 PM

Quote:

Originally Posted by chris_ut

It is a lot easier to get them to throw in additional free upgrades then to drop the price from my, albeit limited, experience in having bought 2 new construction homes.

Ditto!

lane_change · 02-26-2009, 08:17 PM

Well, basically, I could offer to pay X amount for the house, and request free upgrades...which is the same as having them lower the price. My question then should be worded as, when I meet with the builder/project manager, with my final purchase agreement in hand with all requested upgrades, is that I would like to pay $300k for the house and are requesting that you throw in a free sprinkler system and driveway extension which is basically the same as saying that the total price is $306k with what I want, but I only want to spend $300k for everything.

Regardless of wording choices, is it possible to negotiate with a new construction builder and how likely is it that you can actually have success with negotiating with them? When you bought your houses, did you get them to give you more incentives during your negotiations? And if so, how much (you don't have to be specific).

usc619 · 02-26-2009, 08:38 PM

Quote:

Originally Posted by lane_change

Well, basically, I could offer to pay X amount for the house, and request free upgrades...which is the same as having them lower the price. My question then should be worded as, when I meet with the builder/project manager, with my final purchase agreement in hand with all requested upgrades, is that I would like to pay $300k for the house and are requesting that you throw in a free sprinkler system and driveway extension which is basically the same as saying that the total price is $306k with what I want, but I only want to spend $300k for everything.

Regardless of wording choices, is it possible to negotiate with a new construction builder and how likely is it that you can actually have success with negotiating with them? When you bought your houses, did you get them to give you more incentives during your negotiations? And if so, how much (you don't have to be specific).

I would say very good, remember you are a diamond in the ruff. There's not a lot of people who can close on a home these days and they(the home builder) really don't want to lose you, take them for everything you can get

ShelbyGirl1 · 02-27-2009, 05:38 AM

Have them add additional upgrades such as X amt. of dollars in landscaping or fencing etc. Your in control in this economy.

Aliana926 · 02-27-2009, 08:09 AM

I don't know if you can re-negotiate on the price of the house. You're buying a "order" to build house, not a spec/inventory house. You already signed the 1st initial contract and paid your earnest money. It's hard to make them lower the price when they got your earnest money. I think you should had negotiate the price BEFORE you wrote them an earnest check. Good luck.

Houston321 · 02-27-2009, 08:20 AM

Oh yes, we as builders love it when people try to re-negotiate price AFTER they have signed a contract. Real classy.

ShelbyGirl1 · 02-27-2009, 08:30 AM

The OP states: " Now we are supposed to meet with the builder to finalize everything with a new complete purchase agreement,"

Aliana926 · 02-27-2009, 09:34 AM

"Right now, we are looking at a house, we have done the earnest money, we have been to the design center and have chosen our upgrades. Our total price has came out to $306k roughly...and the dealer is offering $20k in incentives, which will make the price $286k."

When I bought my house, after we signed the contract and wrote that earnest check...we pretty much lost our ability to negotiate on the price of the house. A contract is there for a reason...maybe you can get some "free" upgrades.