When buying an existing home, it’s all about negotiating in order to get a good deal. New homes on the other hand, already have a set price, so negotiating for a better deal is pretty much useless.
False. While the materials used for new construction homes may indeed have a fixed cost, you can still negotiate to get a lower price when buying one. Even if the cost for essential components such as lumber or drywall may already be set in stone, you can still be able to get upgrades for more affordable prices.
So before you finalize a deal with your builder, be sure you’re getting the best deal possible by keeping these tips in mind.
Walk through available lots
While your builder might have already created the perfect development, keep in mind that each lot is different. Some lots are more sought-after than others, like a lot situated at the end of a cul-de-sac, for example. Builders will price homes on more desirable lots accordingly.
You can negotiate for a lower price simply by taking time to see all available lots and selecting one without a premium price tag.
Ask for comps
Pulling comparisons is one of the most effective ways to get a better price. You can either request comparison homes and prices from your builder or access public county files to get info on home prices in your area.
This will help you gauge how much your home should cost, which you can use as a starting point during negotiations. Getting comparisons will also help you avoid overpaying for a home based on current prices in your area.
Inquire about upgrades from other contractors
A builder will have a selection of optional upgrades to choose from. Standard finishes will have a base price, but every upgrade, such as premium quality finishes and high-end floors, will drive up its total price.
Before you decide on which upgrades to install, contact other contractors first to canvass prices. You’ll likely get more realistic prices which you may use as a bargaining chip, or you can go ahead and let a different contractor install your upgrades.
Ask about incentives
Many builders use incentives and credits to entice buyers and encourage different services. They could offer credit for closing during a specific month, or give incentives for choosing their preferred lender.
Talk to your builder to find out about their available incentives and whether they offer credits which can be used to pay for upgrades or to cut down the final price of your home.
Consider model homes
In case your dream home is still out of your price range, ask about model homes from your builder. Model homes are usually situated on desirable lots, and feature top-notch craftsmanship. Additionally, they’re usually sold at huge discounts since they’ve already been used as a model home, and can’t really be considered new or custom.
Buying the model home will give you better finishes and upgrades for a lower cost, which will also get you closer to your dream home.