Buying a new construction home is an exciting and rewarding experience. You get to be the first one to live in the home, choose your own finishes and design, and enjoy the peace of mind that comes with a brand new home. However, many homebuyers wonder if they can negotiate on new construction homes. The answer is yes, but it’s important to understand what you can and cannot negotiate with a builder.
Negotiating on the base price of a new construction home is not as common as negotiating on upgrades, paid fees, and incentives. This is because builders have already factored in their costs and profit margins when setting the base price. However, there are still some ways to negotiate and get the best deal possible on your new construction home.
One of the most common things to negotiate with a builder is upgrades. Builders often have a list of standard features and finishes for their homes, but they also offer upgrades for an additional cost. These upgrades can include things like upgraded flooring, countertops, appliances, and more. It’s important to do your research and know what upgrades you want before negotiating with the builder. This will give you a better understanding of the costs and help you negotiate a fair price.
Another thing to negotiate with a builder is paid fees. When buying a new construction home, there are various fees that you will have to pay, such as closing costs, title fees, and inspection fees. Some builders may be willing to cover some or all of these fees as an incentive to close the deal. This can save you thousands of dollars and make the home buying process more affordable.
Incentives are another area where you can negotiate with a builder. Builders often offer incentives to attract buyers, especially in a competitive market. These incentives can include things like a free finished basement, upgraded appliances, or even a discount on the base price. It’s important to ask the builder about any current incentives they are offering and see if they are willing to negotiate on them.
When negotiating with a builder, it’s important to keep in mind that they are running a business and need to make a profit. This means that they may not be able to negotiate on everything, but it’s always worth asking. It’s also important to be respectful and reasonable in your negotiations. If you come across as too demanding or unreasonable, the builder may be less likely to work with you.
One way to increase your chances of successfully negotiating with a builder is to work with a real estate agent. A good agent will have experience negotiating with builders and can help you navigate the process. They can also provide valuable insights and advice on what is and isn’t negotiable with a particular builder.
In addition to negotiating, there are other ways to save money when buying a new construction home. One way is to buy during the pre-construction phase. Builders often offer discounts and incentives to buyers who purchase early in the construction process. This can also give you the opportunity to customize your home and choose your own finishes.
Another way to save money is to consider buying a spec home. These are homes that have already been built by the builder, but have not yet been sold. Builders may be more willing to negotiate on the price of a spec home in order to sell it quickly and move on to their next project.
In conclusion, while negotiating on the base price of a new construction home may not be as common, there are still ways to negotiate and get the best deal possible. Upgrades, paid fees, and incentives are all areas where you can negotiate with a builder. It’s important to do your research, work with a real estate agent, and be respectful and reasonable in your negotiations. With some effort and patience, you can negotiate a great deal on your new construction home and make your dream of homeownership a reality.