How To Negotiate The Best Deal For a New Home
Buying a new home is not quite the same as buying a resale home listed for sale by owner. You might assume that because new homes in Utah are being sold by builders that there is no room for negotiations. While the negotiation process may be a bit different when you are buying a new home, there are ways to get a great deal on a new home if you know what is negotiable. Here are some valuable tips on how to get the best deal for your new home by strategically negotiating with the builder:
#4: Show the Builder You’re Serious With a Realistic Offer
Just because a builder doesn’t have a sentimental attachment to a home doesn’t mean that they aren’t offended by low-ball offers. One way to stop the negotiations all together is to submit an offer well below the asking price. You can submit a realistic offer below the asking price, but low-balling is a quick way to give the builder the impression that you aren’t serious about buying, and builders only want to work with serious buyers.
#3: Non-Realtor Offers Are Preferred
Realtors in Utah probably don’t want you to know this but a builder is much more likely to accept an offer when there’s no outside real estate agent involved. Sellers, otherwise known as the builder, is required to pay the agent commissions at close. If you want to get the lowest possible sales price, making an offer without a realtor will make it more likely that your lower offer is accepted. Just make sure you are prepared to deal with constructing your offer without a realtor if you choose to go this route. If you aren’t prepared for this, paying a higher price to get the assistance you need may be a better option.
#2: Use the Builder’s Lending Program
One way to make sure that the builder accepts your offer is to take advantage of the builder’s preferred lender program if it is available. When you do this, the builder will feel more confident that your financing will go through and they will be open to negotiating price. If you have a weak financing plan and the contract never goes through, the lender has lost on other offers so negotiations aren’t likely.
#1: Ask for Concessions
Concessions, although they may not sound like it, are price reductions in a sense. If the builder won’t come down on price, counter by requesting larger concessions to cover closing costs. Ultimately, you’re saving money on your mortgage in the long run.
There are plenty of ways to negotiation a good deal on a new home. Make sure you can show the seller you’re serious by making a realistic offer without using an outside agent. If you do use an agent, choose one who’s willing to lower commissions and always choose a preferred lender the builder can trust. If you take these precautions, you can buy a new home at a great price.