Can I negotiate a lower offer on a new construction home?
Negotiation is a part of the home buying process. When considering buying a home, many buyers do not think about making an offer at or even above the listing price.
Specifically if the home has been sitting on the market for some time or is in need of some upgrades, typically interested buyers will make an offer under what the seller is asking.
Now – this is different for new construction homes. Many in the market think of the asking price as set in stone. While it’s not easy to bring down costs for new built homes, it can be done.
Do I need a realtor to buy a new home?
Even without a realtor, you could negotiate your new construction home offer. Potentially waiting for the right timing, asking for upgrades or requesting the builder to pay closing costs.
Still, it’s important to have an experienced new construction realtor look over the fine print of the deal.
A realtor will also have a good understanding of your budget and any potential promotions or other new builds in the area. You can count on an agent to keep your best interest in mind.
What can a realtor negotiate on new construction?
Some influences on the cost of a new home are the cost of land, location, size of the home, cost of materials and the real estate market conditions.
It’s important to be creative, consider asking the builder to negotiate the closing costs or asking for upgrades like a patio or a fence. Think of things you would like in your ideal home.
A realtor can also negotiate financing with and for you. Oftentimes a builder works with a preferred lender that may put pressure on the buyer to work with. A realtor may be able to find you a better rate to finance your home.
A realtor will also know and tell you when it’s time to walk away. While it might not seem as negotiation, being realistic and sticking to your budget can be challenging for the buyer. So, a realtor will be more willing to walk away, look at other options and potentially follow up at a later date when the market is more flexible.
Do I pay agent fees when buying new construction?
When you purchase a new construction home, the builder pays agent fees. Because of this, it’s highly beneficial to work with a real estate agent at no cost to you.
Do you have questions about buying a new construction home? Reach out to me today!
