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  #1  
Old 2008-04-24, 02:18 PM
mars mars is offline
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Question Negotiating the price of a new construction home

I'm new to the real estate market and have been looking for the right house. I have narrowed it down to a new construction house with a builder and model picked. I'm ready to put down an offer, but I wanted to know if it was possible to negotiate the price of a new construction house. I know it is possible for a resale home. I've read on other sites that it never hurts to try and that you would need leverage to do so.

Has anyone ever tried to negotiate the price of a new construction home? If so, were you successful? What did you use for leverage?
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Old 2008-04-24, 03:01 PM
Mudz Mudz is offline
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Depends on the area you are in, whether its a buyers market or sellers market.
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Old 2008-04-24, 04:11 PM
oakvillehomeowner oakvillehomeowner is offline
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it's far easier to negotiate additional upgrades than it is to get $ off the house. most price lists i've seen did not drop by 1% when the last gst cut went through (thanks for nothing stephen harper), so there should be some flexibility at the builder's office.
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Old 2008-04-24, 04:49 PM
mars mars is offline
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Originally Posted by Muddassir View Post
Depends on the area you are in, whether its a buyers market or sellers market.
The place in particular is in the Milton, ON area. I would like to think we're in a buyers market, but I wouldn't know for sure.
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Old 2008-04-24, 05:02 PM
mars mars is offline
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Originally Posted by oakvillehomeowner View Post
it's far easier to negotiate additional upgrades than it is to get $ off the house. most price lists i've seen did not drop by 1% when the last gst cut went through (thanks for nothing stephen harper), so there should be some flexibility at the builder's office.
To be particular, the model that I want has only one home available (total) in the current phase. It was posted in the price list at one price, but when I went to talk to a sales rep to get more info on the builder and the model, I found out there was a $5000 premium because of the nature of the lot.

Seeing as how there was the only one home available in this model for this phase and the premium wasn't included in the listed price, I was wondering if there was any possible way in negotiating the premium out of the total price of the house.

The sales rep said there was interest in the one house, but no one's purchased it yet because it's a little pricey for this particular type of house (maybe because of the premium?!?). I've been watching it for a couple weeks and it's been available (XX crossing my fingers XX) so I'm a little skeptical in believing the rep. Perhaps this is something I can work with?
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Old 2008-04-24, 09:10 PM
Mudz Mudz is offline
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Originally Posted by mars View Post
The place in particular is in the Milton, ON area. I would like to think we're in a buyers market, but I wouldn't know for sure.
I personally think that whole GTA including Milton is a sellers market. And it would remain that way until Toronto remains the most attractive place for new immigrants.
If it is a townhouse or condo, or the builder is competing with the top rated builders in the area then you have your chance..

Last edited by Mudz; 2008-04-24 at 09:30 PM.
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Old 2008-04-24, 09:37 PM
Mark & Lynda Mark & Lynda is offline
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Quote:
Originally Posted by oakvillehomeowner View Post
it's far easier to negotiate additional upgrades than it is to get $ off the house. most price lists i've seen did not drop by 1% when the last gst cut went through (thanks for nothing stephen harper), so there should be some flexibility at the builder's office.
How is this the Harper govt's fault? Blame the builders who love to gouge us.

But I agree, negotiate the upgrades or the lot premium and not the price of the home. Most often a new home builder will not negotiate the price of the house. It's a sellers market.
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Old 2008-04-24, 09:50 PM
mars mars is offline
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Thanks for the advice! I will give it a go with the upgrades and the premium and post the results here.
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Old 2008-04-24, 09:59 PM
Mudz Mudz is offline
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Quote:
Originally Posted by Mark & Lynda View Post
How is this the Harper govt's fault? Blame the builders who love to gouge us.

But I agree, negotiate the upgrades or the lot premium and not the price of the home. Most often a new home builder will not negotiate the price of the house. It's a sellers market.
Kind of government's fault. It failed to make sure that consumers actually get tax relief rather then business owners.
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Old 2008-04-24, 10:49 PM
oakvillehomeowner oakvillehomeowner is offline
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Originally Posted by Mark & Lynda View Post
How is this the Harper govt's fault? Blame the builders who love to gouge us.
Harper knew this would happen but it was a politically expedient move, so he did it anyway. He's not very "conservative" - spending the government closer to a deficit than it's been in years, and 10 out of 10 economists agree that the gst cut was a mistake.
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