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Can You Negotiate On The Price Of A New Home?

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Buying a new home is a great way to get exactly what you want without concerns that the structure will need major repairs shortly after you move in. However, it's not always easy to bargain your way into a lower price for a new home since they're being sold by a builder or development company rather than a private seller who can set their own price. Learn the facts about negotiating a lower price for a new home to prepare yourself for the process.

Before the Home is Built

There are a few different ways to negotiate a lower price with a new home builder when you're buying a structure that isn't built yet. Even if you're considering a stock floor plan, there are many small changes the builder can make at your request to lower the final cost. For example, swapping marble countertops for more affordable materials will drop the cost without requiring any extra work on the builder's behalf. Choosing a builder or development that advertises custom homes will give you the best chance to trim out the most expensive details, but most stock builders are happy to make some changes as long there's no alterations to the floor plans and essential structural details.

After the Home is Completed

Finished homes are harder to negotiate over because the builder spent a certain amount of money for construction and must recoup their costs and earn a profit. If they drop too much off of the asking price, they'll have trouble starting their next project with enough funding to cover those costs. In most cases, the asking price for a finished new home is fixed and won't drop much even with skillful bargaining. However, waiting until most of a development has sold may help you gain some leverage.

Builders and developers tend to plan to recoup their costs within a certain number of sales, giving them more room to offer deals on the last few homes to sell. Yet this can run the risk of leaving you with nothing to choose from if the homes sell out faster than you expect. Asking the builder or developer to cover your closing costs is one negotiation tool that won't lower the price of the home, but it can still result in thousands of dollars worth of savings. Looking for developments that aren't selling out quickly will also help you find builders willing to cut a deal just to meet their sales goals.

For more information, reach out to new home construction services.