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11-03-2009 at 7:05 PM
beckel
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Joined on 06-26-2007
Orange County, CA
54 Points
beckel is not online. Last active: 11-18-2009, 1:00 PMNewbie

new build...room to negotiate?

We are buying a new home built by Shea.  Just curious, because of the market these days.  Have any of you had any experience in negotiating with the builders?  I'm guessing they won't move on the price at all, but maybe they will negotiate on options (flooring, etc...)  Have any of you had success in negotiating with the pricing of options.  This is my first house and I don't want to be unrealistic, but don't want to sign everything placed in front of me without questioning either.  Don't want to be taken advantage of.  Thanks in advance for your thoughts.



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11-03-2009 at 7:12 PM
JBE811
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Joined on 06-11-2006
6,450 Points
JBE811 is not online. Last active: 11-20-2009, 9:29 PMNewbie
We didn't negotiate on the base price, but got a killer deal on all upgrades (75% off their "regular price" which were outrageous to start with).  We also got them to put in our sod/sprinklers and pay our closing costs.
 
11-03-2009 at 7:39 PM
LDCtobe
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Joined on 01-05-2005
Omaha, NE
28,276 Points
LDCtobe is not online. Last active: 11-20-2009, 6:50 PMBronze
Our builder prices low for the area and does not offer any incentives.  We were told by our agent before we even started the process that there was no room for negotiation.  We're still paying about $20 less per sq. ft. than the average price per sq. ft. for our city.  We added a ton of upgrades, too, and we're still pleased with the price. 


Not only can I fly, but I can fly in flip flops. 
11-03-2009 at 8:24 PM
J_W2007
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Joined on 06-24-2006
4,314 Points
J_W2007 is not online. Last active: 11-20-2009, 3:13 PMNewbie

Our builder did not negotiate at all.  They were running a $20,000 discount promotion when we signed our contract, so that I suppose made up for no room for negotiation.


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11-03-2009 at 9:20 PM
MrsDL
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Joined on 10-18-2008
Maryland
31,538 Points
MrsDL is not online. Last active: 11-17-2009, 9:27 PMBronze

We bought as the builder was closing out the development so the price was already reduced well over 150K - we did not even try. We did negotiate about 21K in options/closing though. You need to do it before you sign a contract and if they know you'll buy regardless, they are less likely to give in - go with your "we're willing to walk away" face. Good luck.

 
11-04-2009 at 11:16 AM
bamboo118
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Joined on 07-27-2009
Tip of the iceberg
37,577 Points
bamboo118 is not online. Last active: 11-20-2009, 4:11 PMBronze
Did not negotiate on base price but the builder gave us $33K in upgrades and incentives.

our first home | wedding | ellie the wonderdog
home closing 10/28/09 | married 6/16/07

 
11-04-2009 at 12:57 PM
BethieB
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Joined on 10-14-2004
West View, PA
46,382 Points
BethieB is not online. Last active: 11-20-2009, 6:48 PMSilver

We were surprised that we were able to negotiate an extra $8K off the total price. This isn't much, but it helps. And We got $13K off incentives of $33K but that was the builder's monthly incentive. Good luck!

11-04-2009 at 4:05 PM
cmcmillan0...
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Joined on 09-26-2008
21 Points
cmcmillan0510 is not online. Last active: 11-19-2009, 3:06 PMNewbie

We got 15k off the day after we met with the builder the 3rd time (2nd pricing/upgrades conversation).  That night we were leaving to go look at standing houses...like with a realtor.  The builder just emailed us the next morning & said "I'll take 12k off, meet your deadline (4 mos, 1 week house was done), I just need you to close within a month."  So we asked for some more upgrades and he took another 3k off.

The builder later told us that his biggest competition is standing houses.  Essentially that today people don't want to wait for a house to be built or don't have time to wait so they buy something "old."  I think using that to your advantage is your best bet...next time you talk, throw in you'e not so sure about building anymore- you have started a list of homes you want to see with a realtor or something similar.

FYI- 15k off the total was about 7% of our home cost, and we felt the builder's prices were very low to begin with (could build for same amount you could buy for!).

One other super important thing- before your last public inspection/you take possession of the home, you must hire a home inspector, like a private one that are used in "regular" home purchases before a mortgage can be given on the house.  You never know what kind of crap your builder tried to pull- have you read thos articles about the Chinese drywall?  Scary!!!!

 
11-04-2009 at 7:48 PM
ameliaok
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Joined on 07-31-2008
outside of Worcester, MA
5,693 Points
ameliaok is not online. Last active: 11-19-2009, 3:50 AMNewbie

We were able to get $15,000 of our price but we signed in July 09.


Buying A Home

 
11-05-2009 at 12:02 PM
beckel
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Joined on 06-26-2007
Orange County, CA
54 Points
beckel is not online. Last active: 11-18-2009, 1:00 PMNewbie
Thank you all for your advice.



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