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How To Negotiate New Home Price With Builder

March 15, 20233 min read

Negotiating the price of a new home with a builder can be a bit different than negotiating with a seller of an existing home. Here are some tips on how to negotiate a new home price with a builder:

Research the local market 

Do some research on the local housing market to get an idea of what other new homes are selling for in the area. This can give you a better understanding of the pricing trends and help you make a reasonable offer. By researching the local market, you can find out what other new homes in the area are selling for, as well as what features and upgrades are typically included in new homes at different price points. This information can help you determine whether the builder's asking price is reasonable, and can give you leverage when negotiating a better deal.

Get pre-approved for a mortgage 

 Before negotiating with the builder, it's important to get pre-approved for a mortgage so you know how much you can afford to spend. This can also show the builder that you are a serious buyer and have the financial backing to follow through on the purchase. Getting pre-approved for a mortgage shows the builder that you're a serious buyer who has the financial backing to follow through on the purchase. This can help establish your credibility as a buyer, and may make the builder more willing to negotiate with you.

Be flexible on upgrades and features

Builders may be more willing to negotiate on the base price of the home if you are willing to compromise on upgrades and features. For example, you may be able to get a lower price if you are willing to forgo high-end appliances or finishes.

Look for incentives

Builders may offer incentives, such as discounts or upgrades, to entice buyers to make a purchase. Be sure to ask about any current promotions or incentives that may be available. Looking for incentives can be a smart strategy when negotiating the price of a new home with a builder. Be sure to ask the builder about any current promotions or incentives that may be available, and consider how they may impact the overall value of your purchase.

Be prepared to walk away 

Finally, be prepared to walk away if the builder is not willing to negotiate on the price. Remember, there are other builders and homes available, and it's important to find the right fit for your budget and needs. Walking away from a negotiation can sometimes lead to a better deal, as the builder may come back with a more attractive offer in an effort to keep your business.

Hire a real estate agent 

A real estate agent can provide valuable guidance and support throughout the negotiation process. They can help you evaluate the builder's offer, provide insight into the local market, and negotiate on your behalf to help you get a better deal. 

By following these steps, you can increase your chances of negotiating a better price for your new home with a builder.

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TJ Vitense

Founder of Sanctified Homes and Construction & the Blessed to Build Foundation, TJ believes in raising the industry standards. With his company Strategic Real Estate Experts, he helped hundreds of families buy and sell homes. And, now manages new home construction as one of Wisconsin's best home builders.

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