We all know that the plumber makes money by fixing pipes, the mechanic makes money by fixing cars and the builder makes money by building beautiful homes, but here is one aspect that a lot of people
Everything Is Negotiable, Even New Homes!
Negotiation is part of our daily life, even if you don’t believe so. We negotiate for everything from the bread you buy to the home you purchase. You do not believe me?! Think about it, you buy bread from a certain place because of the quality or price or even both quality and price. When you make the purchase you come to an agreement on the “negotiation.” The moment something changes (price or quality), you will find a new place to buy your bread.
The higher up you go the more formal the negotiation process (business, mergers, politics, international deals and so forth), but that does not mean that we are not negotiating for the small stuff. It is really interesting how we negotiate almost everything when we buy a home on the resale market (price, terms, escrow, repairs and others), but we do not blink an eye when we purchase a brand new home from a builder. We walk in and are provided with a price list. Most of the times we take that number, sign papers and get excited about buying a new home. Why? Why do we take that number as an absolute truth and buy the home just like it was a grocery store purchase, just like a bread?
Let’s get straight to the point. You can negotiate price on brand new homes with the builder. And you can negotiate other things as well as upgrades, appliances, interest rate with the lender and many other things. But here is the catch, if you go in yourself, the builder will play it off as you cannot do that. So you have to bring an agent, a real estate agent. Remember, the representative in that office works for the builder and the builder only. They might seem nice and helpful, but the ultimate goal is to sell the new construction for the builder, at a great price. The builder hired those representatives so it is given that they will do everything to please their “boss.” Having an aha moment? I do hope so.
Here are the best news for you, the buyer. Your real estate agent is free, it is paid by the builder and not by you at all. Just like in the resale market, the seller pays for both seller’s and buyer’s agents. Same thing with the builder, they pay for both agents. In exchange for this “great gesture” you have to meet one very important criteria. That criteria is to bring your real estate agent on the first visit to the builder. The first time you go to see those brand new homes at any builder community you have to have your real estate agent with you. After that you can go there, by yourself, as many times as you want.
This is the rule made by builders and they are very firm. If you follow this rule, you can have a negotiator on your side to help you with the price of the home, upgrades, interest rate on loan, and other fees, and all of this at no cost to you.
So next time you decide to go see some new homes, do yourself a favor and call your agent. Even if you think you are just kicking tires, bring him or her along. You will thank him when you get a great deal on a home and can show off to your friends that you paid less than the neighbor on the same exact home.
For any real estate questions or if you are looking to buy or sell reach out to us at 916-770-7783 or on our website at AlexSirbHOMES.com.
I Don't Sell Homes, I Sell a Lifestyle! WHAT I DO: I sell homes where people can make their dreams come true, where families come together, memories are made and goals are met. WHAT TO EXPECT: ....