SO DO NEW HOUSE BUILDERS NEGOTIATE THEIR PRICE? Rarely, and here is a reason why: Let’s say you are no working with a Realtor and want the builder to lower the list price of $350,000 by the 3% Realtor Fee they offered in the MLS system. If they did that the property values in the neighborhood would be going down. The House Builders could obviously have a problem if the values of homes they are building are going down and the home buyers ahead of your would not be happy. So neither the builder or the neighborhood is would enjoy a solid reputation.
HOME BUYER INCENTIVES: House Builders prefer to offer Incentives to Home Buyers in the form of promotions like Free Upgrades, Contributions to Financing or Closing Costs, and other Incentives that provide buyers a “Better Value”. House Builders also prefer to keep the list prices the same until they may be forced to raise their base price to cover added material and/or labor costs. This is a better option than cutting corners with cheaper labor and materials that will obviously lead to an inferior final residential product.
Things you might consider asking for in your negotiations with the new home builder could include Free Upgrades such as Granite countertops if not already included. Another option might be a new refrigerator if not included with the home purchase. Such upgrades can add good value to your home without influencing the value of other homes in the area. Perhaps paying less for a “lot Premium” would get you the added value you are looking for. Or perhaps having the builder install the grass sod for the entire yard instead of just the front and sides of the property.
Some builders have been known to provide Gift Card to a local home and garden store to help you pay for anything you might want from window coverings to a Gas Grill. In golf communities sometimes the builder will offer a Club membership for a year or two.
HOME BUYER REBATES: With that said, home builder will not share the MLS Commission with a Buyer if they are not working with a Realtor. So to get a Home Buyer Rebate that will make buying a new home considerable less expensive, home buyers should work with a Buyer’s Broker or Buyer’s Agent that is willing to provide an Agent Commission Split, also known as a Home Buyer Rebate. A good real estate Buyer’s Agent can work as your Advocate to help protect your best interests and help you get the very best overall deal on the new home of your choice. With an experienced Buyer’s Agent or Buyer’s Broker working as your advocate, you are less likely to miss an incentive or promotion being offered by local House Builders. Plus if a Buyer’s Agent who is a Member of The Real Estate Savings Center Network is available in your area, you can enjoy an Agent Commission Split of 20% to 67% of whatever MLS Fee the house builder may be offering. This in itself can save you thousands of dollars that you cannot save on your own.
As a member of The Real Estate Savings Center Network, your Buyer’s Agent either knows or can help you find the “hot buttons” for builders in your area, and help get you more of what you are looking for a no additional cost.