Anonymous wrote:What if the home isn’t already built? For example, the homesite is $900k and your desired upgrades cost $100k. Has anyone successfully negotiated in this scenario?

You can negotiate more if the builder owns the site and is building on it. They have carrying costs and need to unload inventory and get your money streaming in. Ask for them to throw in the upgrades and pay some closing costs. Remember that the builder's sales team are professional sharks. You MUST be strong. Don't fall for them preying on your emotions or trying to shame you into making a higher offer. Make the offer you're comfortable with. Play hardball.

Talk to them as little as possible when touring. Don't answer their prying questions about you. Come up with some phrases to put them off when they try to dig for information about you. Don't play their game with them. I learned to do this after dealing with realtors. It goes much better when you don't go down their crazy path with them.

What if the home isn’t already built? For example, the homesite is $900k and your desired upgrades cost $100k. Has anyone successfully negotiated in this scenario?

Anonymous wrote:I think the best way to negotiate new build spec houses is to ask the seller to make changes. Adding a fence, painting a room, add a chandelier, change the granite.

That's fine if OP actually wants those things, but that won't work if she just want to pay a lower price.

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.

I think the best way to negotiate new build spec houses is to ask the seller to make changes. Adding a fence, painting a room, add a chandelier, change the granite.

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.

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.

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.

$60k is a 6% reduction from the list price. This is in DC. But there is a builder in North Bethesda (Madison Homes) that also seemed like it would be amenable to going down.

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.

OP here. Thanks for these posts. I am looking at houses that have been completed.

If the house hasn't been built yet, then get in writing that you can have an inspector of your choice do several inspections along the way, starting with one before the plumbing and electrical are sealed up behind walls.

Expect to go over budget ~ 15%

Has the house already been built? You probably won't get a "deal" until the completed house has sat on the market for a few months.

You want all upgrades in the contract upfront.

Now that the market is slowing a little bit, can anyone provide tips on how to negotiate on a new build? I’m looking in Bethesda.