When purchasing a new construction home, negotiation is difficult. Unlike a resale home where you are negotiating with the seller, you deal with a corporation in new construction.
buying a new construction home
With a corporation, there is no negotiating. At least that is what they want buyers to believe, especially in today's market. However, a seasoned realtor always attempts a negotiation.
Realtors Know How to Negotiate
A builder can tell a realtor the price is non negotiable until they are red in the face, but a good realtor still attempts to negotiate. What an experienced realtor does is request to speak with upper management.
A skilled realtor sets a meeting with the upper management and strategically negotiates. They secure the meeting and are not dismissed by the company’s sales team.
When realtors negotiate the purchase of a new construction home, companies often counteroffer with something that makes no sense. For example, they may offer that the list price stays the same, but a cash buyer receives a large seller credit. Builders do this because they do not want to affect the sales price for future sales. Our question is, what is the buyer going to do with this credit? The builder explains that the buyer can use that for various fees (i.e., prepaying condo fees). Then, your realtor comes back and requests a price reduction.
Sometimes the negotiation is successful, and sometimes it is not. But having an experienced realtor on your side for negotiations is always a good idea. And more often than not, you will benefit from the know-how and the skills of a realtor.
New Construction Negotiation with a Realtor
You do not have to use a realtor when purchasing a new construction home. However, if you choose to have a master negotiator on your team, be sure you select a realtor who knows the process of new construction sales, has a relationship with the builders and understands their selling techniques, building techniques, and objections. Work with that realtor because that is the realtor that will deliver value throughout the entire process of purchasing a new construction home.
