Getting a (relative) "deal" on a new build

[Anonymous]

There's a lot of new build inventory sitting (and accumulating) in areas like N Arlington, Bethesda, etc. If you wanted to see if you could get a deal on one that's been sitting for many months (say 5-10% off list assuming $2.5M+ list price) - how do you approach that? Do you negotiate directly with the builder or use an agent? And at what point do builders entertain offers like that?

[Anonymous]

If you use an agent, you immediately lose 2.5% of any discount that you'd otherwise be able to get.

[Anonymous]

I think builders would rent it out before they would sell it at 10 percent off list...

[Anonymous]

The builder will reduce the price if its siting and then you can buy it.

[Anonymous]

This one has been sitting a while. I pass it when I go to the library. It is across from Kenmore MS and a block from a strip with 7-11 and a vape shop. It faces Carlin Springs.
There are similar ones under construction.

https://www.zillow.com/homedetails/5817-2nd-St-S-Arlington-VA-22204/344489822_zpid/

[Anonymous]

Anonymous wrote:I think builders would rent it out before they would sell it at 10 percent off list...

Really? I’d assume they’ve worked in a healthy profit margin so they could take a 10% hit if needed and still come out ahead. Those houses probably cost max $1M to build based on quotes we’ve gotten to build similar houses on our own lot and then say the lot is $1M so if you’re priced at $2.5M you’ve got $500K ish profit margin to play with. 10% discount is $250K so you’ve still got $250K profit. But maybe that’s not how they look at it?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think builders would rent it out before they would sell it at 10 percent off list...

Really? I’d assume they’ve worked in a healthy profit margin so they could take a 10% hit if needed and still come out ahead. Those houses probably cost max $1M to build based on quotes we’ve gotten to build similar houses on our own lot and then say the lot is $1M so if you’re priced at $2.5M you’ve got $500K ish profit margin to play with. 10% discount is $250K so you’ve still got $250K profit. But maybe that’s not how they look at it?

Interest, lot clearance, realtor fees, closing costs, staging. It all add up. With that being said, MR has closed on house near me that was sitting for a long time. I think it was originally listed around $3.5 and it closed at $3.075. I am confident that he still made money. His houses aren't that nice.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think builders would rent it out before they would sell it at 10 percent off list...

Really? I’d assume they’ve worked in a healthy profit margin so they could take a 10% hit if needed and still come out ahead. Those houses probably cost max $1M to build based on quotes we’ve gotten to build similar houses on our own lot and then say the lot is $1M so if you’re priced at $2.5M you’ve got $500K ish profit margin to play with. 10% discount is $250K so you’ve still got $250K profit. But maybe that’s not how they look at it?

Interest, lot clearance, realtor fees, closing costs, staging. It all add up. With that being said, MR has closed on house near me that was sitting for a long time. I think it was originally listed around $3.5 and it closed at $3.075. I am confident that he still made money. His houses aren't that nice.

Wow, can we see photos of your house! I think MR homes are pretty darn nice, though overpriced and I agree there is probably a LOT of room for profit for the builder.