Offer on new build home

[Frank&Kelly]

We're thinking of buying our first home, and we're clueless. Just wondering what kind of an offer to put on a 170K home. We talked to a mortgage guy who said you can't haggle them down on a new build home. I don't buy it.

Thanks for any help!

[time2fly]

I'd keep checking around with other real estate companies, get their inputs. Banks may also be able to answer this question.

Sometimes you can reduce the cost of the home (new construction) by making changes to it before it's built (removing certain options, going with lower cost carpeting, cupboards, countertops, etc....even removing some square footage and or a room.) That is how we were able to afford our home (scaling down on things.) Just keep in mind what you "must" have in your home, what you "want" and what you can do without (maybe add later on your own.) Unless you want that exact model as it is, I don't know how else you could talk them down in price.

Also, if you own your own piece of land, you can sometimes use that in lieu of down payment to help with costs. Good luck to you!

[time2fly]

By the way, WELCOME!

I'm new here too!:wave:

[Margarita]

Welcome to you both! :)

What you offer depends a lot on the market in the area you're looking to buy. If it's a seller's market (more buyers looking than houses for sale), you pretty much are stuck with full price. However, if it's a buyer's market (more houses for sale than buyers looking), you've got some leverage.

My husband and I just bought a new construction home - our second (first was a townhome). We offered a bit less on the townhome and got a lower price. I think they were asking $153k, we offered $150k, and they counter-offered $151k, which we accepted. We didn't save a whole lot, but that was what the market would take at that time.

For this house, we went ahead and offered full price because it was an awesome price for everything we'd get (front yard landscaping and A/C included!). BUT we also asked them to include the back yard landscaping with no increase in price because it couldn't hurt. Our area is in a strong buyer's market, so we weren't in danger of losing the house to other hungry buyers. As it turned out, they'd had a misprint in the listing, and A/C was not supposed to be included for that price. Since it was their mistake, they gave us a choice of A/C or the back yard (We took the A/C).

I hope that helps you out a little. Oh, and we had a realtor helping us out because we had also looked at previously-owned homes AND there's no cost to you as the buyer to use one.

[luv to dance]

We close on a newly constructed home on Thursday and we offered much less than the listing price!

Everything already said are good points. We took the price of the house and determined the price per sq. foot we would be paying and compared it to comparable houses. I live in an area where there are no "new" developments - just new houses here and there so we couldn't compare it to other houses in our neighborhood.

Our realtor did a price comparison with other houses that were just recently sold. The listing price was much higher (per sq. foot) than any of the other houses so we offered really low - DH's way of bargaining. The list price was $189,900 and we're paying $180,000. So there is room to bargain! ;) GOOD LUCK!

[veda]

Did you offer yet?

We just went thru this & ours was listed $299.000 & we offered $290.000 plus they needed to update some of the older electrical wiring in the garage & outside b'c it wasn't up to code, which they did. If the property is new though, my sis said she & DH were able to adjust a few things that were supposed to be installed & lowered the price by several thousand $$$. She's a designer & knew they could find better pricing through her resources & just had those options installed later. Good luck, its a stressfull, contemplative & anxious wait... but worth all of it in the end when you can pull into your OWN driveway :D

[Frank&Kelly]

Haven't offered anything yet. We're still about a month away from getting the ball rolling.

Thanks for all the replies, everyone. We're still debating if that's the place we want to be, as well as what we're willing to pay for the house. My dad's in the construction business (industrial), and he says that these houses just are not worth what they're asking for them (cheap windows, no basement, only 3 sides brick, etc...). They're in a subdivision that's about 3/4 built. I'll probably make them a low-ball offer, and tell them to finish the back with brick, and see what goes from there. The worst they can say is "no", right?

p.s. Am I the only one annoyed when they only brick a house on 3 sides and put siding on the back? I just think it's kinda tacky.

Thanks again! :)

[veda]

If the subdivision is still 25% undeveloped, sounds like you could just offer low & wait, if you have the xtra time - but I don't know much about real estate, just an opinion. Our agent printed out the final sales prices & original asking costs for the past few homes that had sold in our prospective home's area to compare, to give us a basic idea of what we should/could ask... it was helpful. What are their reasons besides cost of materials/labor for wanting to build one side with siding, any? If it's nothing logical, all four sides brick would look more complete (i agree).

Good Luck with your offer!