Negotiating with a Home Builder
A dirt construction is a home built from the ground up
An inventory home is a home that is already built and ready to be moved into immediately New Home Builders Directory.
The ability to negotiate on your new home is going to be highly dependent on three variables:
o What type of home you are buying: dirt or inventory
o The current amount of inventory of available plans
o Your local market conditions
It is most important to remember that you are negotiating with the builder’s profit margin. Profit margin does not include a buyer’s real estate agent’s commission. This commission is already factored into the base price of the home, and will not be negotiable. The builder’s profit margin is not at risk when a home has not been constructed yet in such cases as ‘dirt’ deals. Inventory purchases, however, are at a much more likelihood of being negotiable as Dallas new home builders do not like to have inventory sitting in the subdivision, plus they will have to begin paying interest and property taxes on property they hold in their inventory.
Dormant inventory is bad for business. It gives a negative impression to visitors in the neighborhood, and is also very costly to maintain by the builders themselves while touring these homes with prospective buyers. This is why a builder’s negotiability is higher in inventory homes; they simply want to get rid of them as soon as possible.
It is important to scout neighboring subdivisions and learn the incentives and promotions each is having and use this information to your advantage. If you are using the services of Dallas real estate agents in your purchase, which you should (it is free, after all), Realtors will be happy to do this for you.
Don’t expect for a hard negotiation to take place. Usually, the best weapon in negotiating new home sales is simply to walk out and return at a later time. This strategy will be sabotaged if you have not gotten financially approved prior to visiting new home builders. You want to give the impression to the sales representative that you are ready to purchase that day. Otherwise, you leave the salesperson open to speculate on whether or not the ‘deal’ he is cutting you is really worth the time and effort. If the salesperson feels that your transaction will be very smooth, then a Realtor should have no problem negotiating your sales price down to a reasonable amount.
In the end, a real estate agent’s perspective on your transaction is invaluable in your real estate transaction.
Why a Real Estate Agent’s Assistance Helps
When you purchase a home you are probably making one of the most important investments in your life. It is important to make sure you make the most informed, intelligent decisions possible in regards to the details of your next home. Many times, this can be clouded by an emotional attachment to a home, which believe it or not, can be created instantaneously.
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