The purchase of an existing home is based on the art of business. A new house, on the other hand, is carved in stone, right? Not exactly. While materials may have a fixed cost when a builder is estimating your home, you can still negotiate a better price when you buy a new build. Even if your drywall and timber costs are fixed, you might be able to get around cheap updates. Before signing a contract with your builder, make sure you get the best price when you buy a new build using these steps first. In this way, you can sign knowing that you have obtained the best possible agreement.
1. Walk the lots
Your builder has created the development of your dreams, but everyone is different. Your builder knows that some lots, like the end of a dead end, for example, are more desirable than others. As such, your builder could evaluate the house accordingly. You can negotiate a lower price by taking the time to walk between the available lots and choose one that does not have a premium price. If you would be just as happy on a corner lot, why pay high prices for something else?
2. Pull comps
They say the comparison is the thief of joy, but when it comes to buying a new build, the comparison could be your ticket for a better price. You can access public county files to see how many homes are for sale or ask your builder to compare houses and prices. In this way, you can evaluate the price of your home they should to be and use it as a starting point for your negotiations. Getting compliments can also ensure that you are not paying more than you need based on the current sales climate.
3. Improve prices
Your constructor has a catalog of updates you can choose from. You will get a base price for the standard finishes, but each upgrade, which you think of the floors and finishes of the higher end, will increase the total price. Here's the thing though: like drinks in restaurants, the updates are mostly profit. Of course, the materials could cost a little more, but the builders have a high price. Before accepting your must-have updates, take the time to evaluate them from a separate contractor. You will get a more realistic price and you can use it as a bargaining chip, or opt for the installation of your updates by another (cheaper) contractor.
4. Get incentives
One way in which builders attract buyers and encourages different services is the use of incentives and credits. There could be a credit for closing in a given month or an incentive to use a manufacturer's preferred lender. Ask your available incentive builder and use credits to help pay for upgrades or reduce the final price of your home. In some cases, simply asking for current incentives can save you thousands of dollars.
5. Visit the model
If the house of your dreams still seems a little out of the way for you financially, ask your builder about their model homes. The model houses are built on the most desirable lots with a high quality craftsmanship. At the same time, they are often sold at large discounts because they have been used as model homes and are not considered new or customized. Choosing to buy the model means better upgrades and finishes at a lower price, putting your dream house at your fingertips.
6. Change neighborhoods
The properties concern the supply and the demand and the new constructions are not different. If you are looking for an exclusive neighborhood with a low number of houses, you will pay for it. If you, on the other hand, enter a new neighborhood or sell it faster, you could save a lot of money. Ask your agent or builder about available neighborhoods and lots. If you're willing to choose a new development, you could get the same house for a lot less.
7. Look around
Each manufacturer has cultivated a network of preferred partners. From lenders to roofers to framers, most builders always use the same contractors, even if they do not offer the best price. Do not be afraid to look around and check prices with other builders, entrepreneurs and lenders. In some cases, the incentive to use your builder's preferred lender may be less valuable than a lower interest rate with someone else. Once you have finished your search, you can choose a manufacturer and sign a contract with confidence.
Your builder could quote a price to start, but new builds have a lot of variables. The way you design, build and finance your home can make a big difference in the price. Review your search options and costs when you purchase a new build to ensure you get the best deal. Entering the construction of your dreams is fantastic, but getting it at the best price puts the "sweet" in "home sweet home".