Strategies for negotiating on new construction

[forouza1]

Sorry, we are first time home buyers.  My family and I are looking to purchase SFH in North or Central OC.  Not in a huge rush but probably looking to get something in in the next 6 months. We have seen several developments including several wtih Irvine Pacific.  Leaning toward something in Yorba Linda instead (finding it really hard to justify the premium of Irvine). Just wanted to know some strategies purchasing new construction.

How negotiable are the listed prices (i.e. I've seen some properties close on Redfin 10% below listed).  My assumption with the TIC is that they don't negotiate, true?  Would you negotiate a price on the standard items and add upgrades on top or negotiate of the total price including upgrades?

Should we get preapproved?

In house lender or our own?

 

[usctrojancpa]

Sorry, we are first time home buyers.  My family and I are looking to purchase SFH in North or Central OC.  Not in a huge rush but probably looking to get something in in the next 6 months. We have seen several developments including several wtih Irvine Pacific.  Leaning toward something in Yorba Linda instead (finding it really hard to justify the premium of Irvine). Just wanted to know some strategies purchasing new construction.

How negotiable are the listed prices (i.e. I've seen some properties close on Redfin 10% below listed).  My assumption with the TIC is that they don't negotiate, true?  Would you negotiate a price on the standard items and add upgrades on top or negotiate of the total price including upgrades?

Should we get preapproved?

In house lender or our own?

Non-TIC builders are definitely more flexible and more negotiable both on prices and buyer incentives.  TIC is as flexible and easy to work with like a steel beam.  I wouldn't get pre-approved by the builder until you are close to pulling the trigger on a lot that you like.  Also be sure to bring your agent with you to register at the sales office so that you can split the broker co-op with them, no sense in leaving money on the table for the builder.  Builders would rather provide closing costs and upgrade credits rather than lower prices (especially if there are still a number of homes they need to sell for appraisal purposes) but sometimes you can get the best of all worlds. 

You are free to use whatever lender you want, either it be the in-house lender or an outside one.  Go with one that you feel most comfortable with and one that provides you good services and competitive loan terms.  Remember that builders will tend to be most flexible on homes that are fully built but not yet sold (aka "standing inventory").