New homes are negotiable?

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monekoko_IHB

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I know the builder has reduced the home price since last year, but.... personally, I think it's still too high... When I asked if I could negotiate the home price, the response of the sales person in the new home sales office(woodbury) was very short and simple "nope'.... because they think they have already reduced the price a lot. You guys really agree with them? Are there anyone who just purchased the new home recently and got really cool price? can we share the experience?
 
I think it depends... if it was a home that the previous buyer backed out and is near completion, they'd be more willing to negotiate a bit or offer more incentives than say a newly released phase where the foundation hasn't been poured. During the bubble there was no negotiation, why negotiate when there were lotteries to see who could be lucky enough to even buy a house.



Some villages are still rock firm on their price, but I guess it comes down what they had already paid for the land vs. where the land prices are now, so they're tied financially to the old price. My take, it doesn't hurt to make an offer, the worst they could say is no...
 
<p>Find out if the home has to close by the builder's fiscal quarter end or even better year end. If it is they are negotiatable and you can get a much better deal. If it isn't I'd be a smart @ss and say ok well I'll come back next month when you dropped the price again and I'll ask again if it is negotiatable. Then go back next month when the price is lower and ask again. Keep repeating until you get your price or gets near the quarter or year end. </p>

<p>Trust me the builder I worked for paid off a guy's car at year end because he wouldn't qualify otherwise. </p>
 
Before but you can negotiate after when they drop the price and you threaten to walk away. That is a lot harder to do and unless you make friends with the new buyers you may not know the real price they paid.
 
What I have notice is that the builder instead of reducing the price more. They would drag out the time on releasing the next release. Is there a reason behind this?
 
monekoko, are you looking at villa rose? I can tell you which streets are the last releases, and you can go to county recording office to figure out the exact sales price. ARe they selling again?
 
Since the market is slow right now, many of the builders are slowing down opening new phases. They try to avoid building homes without any buyers. Ask the builder if they have any inventory homes. You have a much better leverage to negotiate with them on these homes. In addition, use a RE agent. Have them contact the builder, many of them do broker comps. Many RE will give you a good kickback. In addition, many of the builders cannot lower the prices, they are concern previous buyers will complain and sue them. Instead they give incentives toward closing cost, upgrades, etc. You can always ask them to apply those incentives to the cost of the house. Everyone is having trouble selling houses in this market, even the new homes. Be patient and persistent, it will pay off.
 
Just out of curiousity why not bid for a almost new property on the courtroom steps like:





30 Crimson Rose up for auction 8/1 with a notice of sale amount of $1.08mil. but there is a $380k second mortgage too.





Lot Size: 6500 SF


YoC: 2005


SF: 3403





I am 99% sure you can come away with a 2005 construction house for $317/ft
 
bishle,



So what happens with the 2nd, if you win the auction. Are you no also taking on any existing liens from the 2nd and OC tax liens as well? Anybody know what builder/tract or floorplans all those houses on Crimson rose and surrounding streets in TR are?
 
Unless the second is willing to show up with funds to pay off the first the second gets wiped out. Considering these were likely in a CMBS there is almost no chance that will happen. The OC tax liens are a prior claim so you would have to pay that. You may also have to pay some miscellaneous fees to the people handling the sale but it should be minimal compared to a brokerage commission and you need to have your financing in place beforehand and have a deposit amount available in money order to bid on it. Regardless if you want a new home should be a pretty decent deal.
 
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