New construction can be a great choice. You get to live in a brand-new, never-lived-in-before home, and you can get tailored specifically to meet your needs and wants. But there are some drawbacks, chief of which is builders’ typical reluctance to budge on price. Their goal is, after all, to maximize profit. Still, there are other ways to negotiate a good deal on a new-construction home. Read on to find out how to negotiate the best deal with a [market-city] home builder.
Understand the Builder’s Motives and Incentives
Before you ever begin negotiating, you should have some understanding of the motives and incentives operating with your Riverside home builder. Knowing why your builder does what she does will put you in a better-negotiating position.
“Once you are at a negotiation table,” industry experts say, “you need to understand one thing – you’re a buyer, and your home builder is a seller. He’s like a real estate agent for a yet unfinished house. They’ll try to pitch you their services for a price. The goal is that the price leaves space for them to make some money. Their services do not come for free; yes, you need to pay them, but make it so that both parties leave the table satisfied. This will not be an easy doing, as contractors look to set a price and then not to bulge from what they think they deserve. With new houses, the prices are going to be exceptionally high.”
Keep in mind that home builders, including a Riverside home builder, are very reluctant to reduce home prices because “they are not only negotiating your new house, but all of their projects, and they can’t make any exceptions at a lower price.” Knowing that builders don’t want to budge on price will set you up to negotiate a better deal in other areas.
This is also a good reason to work with an experienced Riverside agent. To discover more about how an agent can assist you, just call (866) 593 7012.
Find Out About Sales, Discounts, and Incentives
One of the areas in which you can negotiate the best deal with a [market-city] home builder is sales, discounts, and incentives. During the slow time of the year or in a slow market, builders may be willing to offer certain incentives and discounts to move products. But you can’t assume a builder will tell about these – you have to ask.
“These promotions could be in the form of cash, discounted prices, or freebies. Just to mention a few of these,” according to industry pro, “I have seen $10,000 taken off the price, free garage door openers, fully sodded yards, landscaping, upsized water heaters, and partially finished basements. You never know what a builder may offer, and you might be really surprised. So make sure to inquire about them.”
Ask for Free or Reduced-Price Upgrades
Another area where you can negotiate a better deal with your Riverside home builder involves upgrades, either free or discounted. Such upgrades “can be in the form of cabinets, floors, appliances, countertops, fixtures, or physical framing features of the house itself, like arches and coffered ceilings.”
Upgrades often have significant built-in upcharges, so a builder may be willing to throw them in at a reduced price or some even free. “In fact, at times, builders even publicly advertise half off upgrades. So, it’s really not out of the norm to ask for a large discount on them. And, some upgrades, such as minor physical changes or improvements, will not cost the builder much at all, but can dramatically affect the look or practicality of a house for you and how much you love it.”
Get the Builder to Pay Closing Costs
An effective strategy for negotiating a better deal is to ask your Riverside home builder to pay the closing costs. Closing costs typically run into several thousands of dollars and getting a builder who won’t budge on price to pay these can save you quite a chunk of money.
In fact, this may be more attractive to a Riverside home builder to pay moving costs and/or the cost of hooking up utilities.
“Moving is one of the most dreaded and costly parts of buying a new home. Why not make the move more enjoyable and less expensive by asking the builder if they will provide a moving service? You could either have them set up the move with their preferred movers or have them reimburse you for your moving expenses. Even if you can only get the builder to pay for a rental truck, it’s better than nothing.”
And there are the necessary utilities, which, with new construction, probably aren’t turned on in your name if at all. “The utility companies charge to have the utilities turned on in your name as the new owner. To offset this cost, you can ask the builder if they will pay for the cost of the hookups and transfer. This may only be a few hundred dollars, but every little bit helps when you’re spending a lot of money on a new home build.”
Get the Agent Advantage
As should be apparent by now, negotiating the best deal with a builder takes a lot of knowledge and negotiating skills. And that’s exactly what your experienced Riverside agent can provide. If negotiating the best deal possible with a Riverside home builder is your goal, contact us today at (866) 593 7012.