Posted by gerald (tx) on January 07, 2003 at 21:08:18:
usually the last homes in the development are sold at bargain prices, “closeout specials”. It’s not profitable to maintain sales or construction teams at this point. Also, keep in mind upgrades are usually highly inflated. Also, since no realtor was involved, it would seem likely to me that you could go a lot lower.
I would think of weaseling on the offer and trying for a better price.
Info on buying a new home - Posted by Shawn (MD)
Posted by Shawn (MD) on January 07, 2003 at 20:34:13:
This isnt traditional rather than creative - and its for our own home rather than investment (at least in the short term). But I was wondering about typical discounts on a new (as in being built in a development) home.
The development is nearly finished with only about 6-8 lots/model left to sell out of 155.
We went in without a Realtor and ended up making an offer on a house that the builder had began without being under contract. The house was already discounted 10,000 from “list” price due to being a less desireable lot and the builder is offering $5000 closing help for using their partner lenders and title company.
Our offer was for the same price but with nearly $5000 in additional upgrades. The development has done nearly no advertising - it was less than 2 miles away from us and we didnt even realize it was there. And the sales manager claims nearly all their houses sold at full price. Not sure if I believe him but with as hot as the market has been and mortgage rates where they are I guess its possible. At any rate the Sales Manager told he thought that the builder would probably counter.
My question basically is what is typical for a new home? Do people really usually pay the full list that they are asking or are we getting in at full typical price and he is actually just laying it on?
I tried doing some comps but its difficult to tell if I am comparing equivalent homes since there can be a pretty large variation in upgrades and we are getting the largest floorplan which is a little rarer.