Aerovette Posted February 12, 2007 Report Share Posted February 12, 2007 A local builder has a completed inventory home he is selling in a relatively new subdivision that is about 50% built out. The price is $257,000.00. There are $10,000 in upgrades they will credit back. Making the new sale price 246,000.00. I have heard there is no room for negotiation on new homes. This one has had a couple contracts fall through, but they are not at all desperate to sell. I want to make an offerof something less than full price AND I insist that the back yard be sodded (typically this is not included and the back yard is just sand/dirt). What is a typical % off of full price that I can make with out being ridiculous. I know where bargaining is concerned, you must be prepared to lose the deal and walk. I don't want to lose the deal, but much like buying a new car, I assume no one really pays full price do they? This is a Houston market and bidding wars never happen here, or at least in this section of the city. What I WANT is to offer 250,000.00, THEN take the $10k off of that AND sod the yard. Am I asking for too much? Opinions please. Link to comment Share on other sites More sharing options...
ybrew Posted February 12, 2007 Report Share Posted February 12, 2007 you're asking for too much.Who's the builder? (I'm in houston too).I imagine you've got a relationship already with this builder, right? If by any chance you do decide to walk or if it's not too late to add a real-estate agent to the deal, let me know. I've got a great agent that'll give you 2% back at closing. You pay NOTHING. She basically does nothing for you, except give you a check for almost $5k after you close (or you can use that money for closing costs.If you're buying a new home, you don't need an agent, and builders don't want you getting one because they have to pay for your agent. There is practically no negotiation in the houston market for new homes so this is really your only way to get money in your pocket. Link to comment Share on other sites More sharing options...
Aerovette Posted February 12, 2007 Author Report Share Posted February 12, 2007 So you belive I cannot get this house for less than sales price? I have an agent for the sale of my house, buyt will not be using one for the new home purchase. Especially if I am paying full price... What purpose would they serve? Link to comment Share on other sites More sharing options...
Recovering Attorney Posted February 12, 2007 Report Share Posted February 12, 2007 An agent can give you real answers to the type of questions you are asking here. An agent is in a beter positon to advise you on what a good price is, what you might be able to get as concessions, where the builder is at and whether he needs to movie this house, etc. Any good agent is worth your time. You don't think the builder is going to slice the commission off the proce just becuase you don't have one?My two cents is, to get a better than average deal, you have to make it worth the builder's while. Take as many obstacles to closing off the table as you can, e.g. contingencies for sale of your house or your mortgage, put a bigger down payment, flexibility on closing, etc. Link to comment Share on other sites More sharing options...
ybrew Posted February 12, 2007 Report Share Posted February 12, 2007 So you belive I cannot get this house for less than sales price? I have an agent for the sale of my house, buyt will not be using one for the new home purchase. Especially if I am paying full price... What purpose would they serve?No, I don't. but it may depend on the builder - who is the builder.In texas, an agent is almost worthless for a new home purchase.But read the rest of my post. My agent signed her name 3 or 4 times. For that, she got a 1% commission on a 250K + home.However, ALL she did was sign her name. She knew nothing more would be asked of her and she in turn gave me a 2% rebate on 250K +. It was FREE money to me. The way real estate transactions work here - the sales agent gets 6% commission right away. They may or may not have to share a portion of that commission with their bosses. If you bring in an agent, your agent gets 1/2 of that 6% (or 3%). If you offer to not bring an agent, it's ILLEGAL for the builder's agent to give you monetary compensation. It is not illegal for the buyer's agent to give monetary compensation though (at least in Texas).You need to go in with the understanding that you have a discount agent who will do very little for you. I did speak to my agent on the phone several times and she answered a few questions and even recommended a mortgage broker (who i did not use) but I never met her and she wasn't spending lots of time on me. She did get my check out to me very quickly though. I was extremely satisified and would recommend a discount agent to anyone that doesn't need an agent (basically anyone buying a new home). Other states work differently and it'd be foolish to go into any transaction without an agent and a lawyer. In Texas, lawyers are generally not used in real-estate transactions and agents are generally not used in new home purchases. Texas builder sales agents love that because that's more money in their pocket. Link to comment Share on other sites More sharing options...
ybrew Posted February 12, 2007 Report Share Posted February 12, 2007 Btw - I asked a few agents - my discount agent and other non-discount agents about price negotiating on new homes. In Texas (houston) they don't negotiate price. They will negotiate some upgrades, but not a lot (and some builders none). My builder was one of the none. We did get a quart of paint and a free touch-up brush after closing though!Getting sod in the back yard for purchase price may be do-able. But that's probably about the best you can expect. Link to comment Share on other sites More sharing options...
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