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You decide you want to buy or build a new construction home, which is a very common scenario in Southwest Florida. The listed price on the home is a little higher than you’d like it to be, so you wonder if you can negotiate and get that price lowered. The short answer? Everything is negotiable. However, you may need someone to help you navigate this process in order to make it beneficial for you, the buyer. How do we know this? We helped clients buy a new construction house for $80,000 LESS THAN THE LISTED ASKING PRICE... ... No lie. When it comes to New Construction pricing, there are three common scenarios: a house that is starting from scratch, a house being built or built with no buyer (inventory), and a new construction resale home. At all three stages of this process, there are ways to negotiate the price. (And it definitely helps to have a good real estate agent who can help!) 1- From the Ground Up When you decide to build from scratch, there are tons of choices you have to make as the buyer: flooring, cabinets, counters, paint colors, elevation, pool construction, etc. Depending on the builder, the number and scope of these choices varies. Some are completely custom, while some give you limited choices. All of that determines how much wiggle room you have to negotiate the price. Normally, builders and salespeople are willing to give some type of “incentive” in order to help keep the price where you want it. This could be a Design credit to make certain upgraded choices, or it might mean they include an outdoor kitchen at no “additional cost”. They might be willing to lower the lot premium for your homesite, or maybe give an incentive tied to using their lender/title agency/etc. All of these credits and incentives help to keep your bottom line where you want it, and a good real estate agent can help you negotiate to get the most bang for your buck in these situations. The builders have less motivation in this situation, so you have less negotiating power. 2- Inventory or Move In Ready If a house is being built and all design choices have already been made, but there is no buyer for the home, this is a second scenario where you can try to negotiate a better price for the home. The builder will determine a price based on the choices made for design and construction. However, that price is never set in stone because they want to sell the house and therefore might be willing to work out some incentives or discounts on that price to move the house, rather than let it be built and sit there for a long time. If the home is built as an inventory home and just sitting there waiting for a buyer, that is a GREAT opportunity to negotiate. This is the scenario we helped our clients get a home in Lakewood Ranch, FL for almost $80,000 less than what the home was listed as. 3- New Construction Resale This is a less common scenario, but with so many houses being built recently, there may be a situation where a new construction home built in the last year or so is already being sold. Maybe the owners got relocated or are moving for personal reasons – whatever the situation is, that home is practically untouched. Therefore, you have a great opportunity to get something NEW and DONE! You may not have much negotiating power on the price, but that all depends on how quickly those sellers need to sell. We just had clients purchase a brand new home in Mallory Park at Lakewood Ranch, built last year, for far less than it would have cost to build the same home because the seller was relocated for work and needed to move, ASAP. So it was a win-win for both parties! Overall, your chances of negotiating the price on any new construction home are pretty good, and using a real estate agent that knows the process and the market well can help you even more. If you need someone in the Lakewood Ranch or Sarasota area, feel free to contact us! If you are looking elsewhere, we are happy to refer you to a great agent. 941-348-2653 [email protected] It got me when you said that a good real estate agent will help us with negotiating the best deal for whatever situation we are in. In that case, it is best to work with a professional instead of doing things on our own when we look for a new construction home real estate property. We plan to start shopping around in the first month 2023, and it seems like it would be better for us to be accompanied by an agent one we start doing it for our own benefit. Comments are closed.
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