Tips on negotiating on a new build

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This week I was able to get a builder to go down $60k from the listed price in addition to offering sizable closing credits ($40k). Some homes in the development have been sitting for a while (~3 months) and the builder is keen to rid itself of inventory since it’s the end of the year. Builder employees were pretty discouraging of my making an offer; implied I was going too low, etc. Glad I didn’t listen to them and just went for it.

Good for you! I've also made several lowball offers on homes. Most of them tell me to go pound sand, but I've also bought four homes this way.

OP, just get a thick skin and make your offers. Don't interact with the builder company much to avoid letting them play their game. If the homes are already built, then this is similar to bidding on any other home. Just determine your offer and submit it. Don't let them manipulate you into making a higher offer. It's a numbers game. Some of them will reject your offers and you need to move on and find one who will negotiate with you. Remember that they're still making a killing even at a reduced price.

+1. I am always amazed at people who are fearful of just making below-ask offers for fear of offending the seller. If a house doesn't sell within a couple of weeks, it's stupid to make a full-price offer. Unless you absolutely must live in a particular house or development, then make your offer and if it's rejected, move on to something else. If you have a buyer's agent and they discourage you from making below-ask offers, then that agent isn't looking out for you, and you should move on to a different one.

PP here. Yes, the builders and realtors are in it together trying to get the buyer to pay more.

You touched on another important point: lowballing is for buyers who don't have to have that specific house and are happy to walk away. If it's your dream house, or one of the rare affordable ones in your target neighborhood, or there's some other reason that you really want it - then don't lowball.

You the realtors who give the same advice as you gave in yoru last paragraph are trying to get the buyer to pay more, but when you give it, you are simply acting as a concerned citizen helping homebuyers?