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Ben & Heather Wolfe
Broker / Owner
Wolfe Realty Group, Inc.
Office: (303) 681-3553
Cell: (303) 667-7995
Home: (303) 681-0679
Email
1851 Gore Drive
Larkspur, CO 80118

Are new build prices negotiable?

 
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    • New home sales is a retail business. The builder has to sell current inventory to finance future construction, just as a retail store must sell out the Fall and Winter goods to make way and pay for the Spring line.

    Sometimes builders have more business than they need and in consequence nothing is negotiable.

    In today’s Buyer’s Market builders need to move inventory, and they are willing to make deals.

    Most of the deals are set by higher ups, with the on-site sales staff authorized to smile and say the same things over and over again.

    If a salesperson says something like, “If the only thing standing between us were the carpet upgrade, would that make a difference?” That is a closing question, but it’s also a hint about flexibility. Even then the salesperson may not be able to make concessions, but the hint is that concessions are possible.

    If you’re truly interested in the home and if you can be persuaded by a better deal, now is the time to sit down and dicker. Even if you have to leave the deal on the table for referral back to the main office, you may have won.

    Upgrades are where builder’s profit margins are highest. If you can arrange for and pay for your own granite counter tops, don’t buy theirs unless it’s free or deeply discounted. If you don’t like the builder’s stainless steel sink you can buy a top-quality sink at Lowe’s or Home Depot for much less than that same sink at the builder’s design center.

    Right now a great deal of spec home inventory is being sold at huge discounts. Builders will frequently build a number of spec homes for the buyers who need to move NOW. Many of these homes end up sitting completely finished and the builder needs to sell them. If you like a builder’s spec home that has been sitting for a period of time you can frequently negotiate a very good deal.

    Another way of getting a great deal is to purchase a presale that has fallen through. People who bought new homes contingent on the sale of their old home, then had to cancel the new home purchase when their current home didn’t sell. In consequence, some builders are essentially giving away upgrade packages for free: You pay for the base price of the home and whatever upgrades the former buyers had ordered are thrown in gratis. These upgrades will not be worth their imputed value, since the mark-ups are so high, but they can be worth a lot. The whole package-deal may be non-negotiable, but it may be an excellent value nevertheless. These sorts of deals are a temporary phenomenon as builders sell down excess inventory.

    Most builders are happy when you come in with your Buyer’s Agent as it reduces them amount of work the builder’s sales associate must perform. Additionally when working as your Buyer’s Agent we represent you and look out for your best interest and we may be able to use our local expertise to negotiate a better deal than you can obtain on your own. To learn more about the benefits of Buyer’s Agency review the Services area of our website. Many builders require your Buyer’s Agent to accompany you on your first visit, so call us before you go out looking at new homes. If this is not possible, be sure to tell the sales associate that you are working with Ben & Heather Wolfe and delay registering with the builder until we are able to accompany you.