Posted on: 2 July 2015Share
When it comes to changing houses, most people prefer newly-built abodes to purchasing existing ones, and who can blame them? Purchasing existing homes can lead to unexpected repair costs down the road, and knowing that you built your own home can give you a sense of accomplishment. Here are four tips on how to better do business with new home builders:
Get to know the seller
There is a huge difference between buying property from the builder and buying a home from the current occupant. For example, a builder is highly unlikely to be emotionally attached to the property, and more often than not just wants to sell it as soon as possible. When buying, it is important to do a little bit of research into the past sales.
If the properties in the area have been selling rapidly, it might be hard for you to get a deal. If sales have been slow, however, the builder may be prepared to negotiate.
Do not base your negotiations solely on price
In general, new home builders have no incentive to lower their prices. That doesn't necessarily happen because they think the offer is bad, but because giving you a discount might set a bad precedent. Imagine if the contractor has lots of new units on the market at a given time. If they offer you 10 percent off, this could result in a decline in all future sale prices.
This is the reason why it might be a good idea to ask for something that doesn't involve price. You could ask the seller to perform future upgrades for free, or to cover the closing cost of the deal.
Get the Deal in Writing
Another important aspect is to have all verbal agreements written into the contract before proceeding further, even if you are naturally trusting. Handshake deals and verbal conversations are not binding, but when written into the contract, these terms will be legally enforceable. In order to have any legal weight, the contract must be signed by all parties.
Ask for Discounts Only When Appropriate
If you are considering buying a residence that is under construction, you might be shown a model house in the housing development. While these models include standard features, they might have some added "premium" features that your house might not have. Basically, what you see won't always be what you get. If the seller expects the same price even for less expensive features, that leaves you room to negotiate.