Considering purchasing new construction for your next home is very exciting! There are so many advantages to working with new construction. Think about it – you are the first and only one to have lived in your home. No one else has used the kitchen or the bathrooms, the carpet is brand new, and it still has that “new home scent”. Also, most times you get to be involved in the process of helping to build your new home, whether that includes selecting a floor plan or choosing your interior finishes. It’s a very exciting experience!
There are certain things, however, that builders would like for you to know when considering new construction. In our blog series, “From a Builder’s Perspective”, we would like to give you the inside scoop to help set the right expectations for you when you consider building your dream home. So first, let’s start with one of the main things builders want you to knowÉ
Everything is negotiable, right??
Not necessarily! Builders rarely negotiate on price. New construction is a hot commodity, and therefore the price that builders set for their homes is typically non-negotiable. You would love to buy a brand new home, right?? Well so would thousands of other homeowners. The demand is high for new construction, and the harsh reality is that while you would love that new home AND feel like you’re getting some sort of “deal”, there are probably multiple other homeowners that will pay list price, and builders are aware of this. We don’t want you to lose out on your new home to another buyer, so know that if you really love that new home, it’s best to jump on it versus lose the home as well as sleep because you weren’t able to negotiate over a few thousand dollars.
It’s best to understand how and why builders price their new homes. Builders price at fair market value. There are multiple factors to consider when opening up new construction communities or building a new construction home. Most of the research goes on behind the scenes for months, or even years, before you start to see a home going up. This immense amount of research is done to determine where to build, what product to build, and what to set pricing at so that buyers like you can find a beautiful home in a wonderful community. Unlike a homeowner who has an emotional attachment to their home, builders are a business entity taking into consideration economic factors, such as supply and demand, while also considering what market trends are affecting pricing at a given time in a given area. A real estate agent will help a homeowner price the home based on these factors, too, but if you’ve ever tried to sell your home or purchase resale, you can understand how emotional and financial constraints can sometimes outweigh logic when it comes to accepting certain pricing suggestions or offers. Don’t fret, though! While you might not be able to negotiate on the list price, there are multiple costs savings to you associated with purchasing a brand new home.
In our next blog posts, we’ll take you further behind the scenes of new construction to discuss the financial savings and benefits you can expect when you buy new!
Laura McGreal and Karen Schwartz worked for the nation’s largest builder for 10+ years, so they are able to communicate the inside track of working with a builder as well as offer up the top benefits that are associated with working with new construction.