Dealing on a New Build

[Dave P]

Hey Beyond,

Is it acceptable to try and wheel and deal on a new build? or is the price the price?

I enjoy a good deal, and haggling, but was just wondering what I should be realistically looking for?
2%? 5%? Or is it better to deal on options for the house (ie, throw in granite, etc)

Thanks for any info/tips

Dave P

[EmJay]

I just recently bought a brand new build in New Brighton and I had luck getting them to knock the price off of some of the upgrades I picked out. It wasn't much but it was still something, think it worked out to being the equivalent of getting the upgraded blinds as well as a higher end faucet in my kitchen for free. Out of all the units that were built in my complex my sales person said I was the only one that actually tried to negotiate.

If I were building again I would probably push my luck further and ask for more, the worst they can say is no but if you don't ask you'll never know.

Congrats on the new home!

[88CRX]

Good luck!

I’d say you might have had a chance last summer when the industry was slower but all the builders are so busy right now I doubt they’ll be willing to listen to any demands for lower prices.

[vtec4life]

I got halfway through my final paperwork with the sales manager before stopping and asking when we were going to negotiate the final price of the home. He played a little hard ball at first saying the price is the price and we dont negotiate. He actually pulled the paper out of my hands thinking I would get scared and cave in.

We sat there in silence looking at each other for the next 30-40 seconds.

I justified it by saying that if they dont negotiate on new builds then why do they negotiate on spec homes?

Oddly enough thats all it took.. he agreed.. and asked what kind of "goodwill" I was looking for, I said 2% which was roughly $6200. It was not up to him as it is the owners choice on who gets what deal so he said he would speak with them and get back to me.

I knew I had it before he even got back to me because we finished the paperwork with the revised price and I was positive they wouldnt make me go through it all again especially on a done deal.

Just be prepared to walk away... there's plenty of houses out there!

On a side note: The builder is Morrison homes and they have been an absolute pleasure to deal with from day one. I've been getting weekly updates on the status of the house and all of the staff is very friendly when I go in to the showroom.

Possession date is July 17th!! I cant wait.. The home is in Cranston. I got what I would say is a great value for what I paid. It ended up being Roughly $330K for a 1475 sq ft semi detached home with a single attached garage w/ driveway. 3 bedrooms, granite counter tops, hardwood, stainless appliances and glass tile backsplash. A nice big backyard and a good size basement.

If you compare that price to a 1400 sq ft townhome at roughly $315-$320K in Cranston/Auburn Bay its a no brainer.. no condo fee's, a driveway, a nice big backyard, and a real basement.

[GreyFox]

I think it depends on the builder. I tried to do this with Brookfield and even pointed out the fact that because I didn't use a realtor they're saving about $5000 AND I offered to build a garage through them if they could throw a few thousand of extras in (asked for rear sod and a washer/dryer) and they said no. Didn't make any sense to me as they would've ended up with an extra 20 grand in net revenues but they said they just simply don't negotiate. I was willing and did end up walking away from that offer (not from the entire purchase) and we scrapped the garage build through them so they did loose out on 20k in revenue but they honestly didn't care.

But like everybody said, ask no matter what. Worst case scenario is they say no.

[masoncgy]

Rarely will a builder take a hit on a new build. The company has to be pretty desperate to discount a house that doesn't exist given the only carrying costs are on a lot that they acquire for much cheaper than you purchase it for... ;)

Spec houses are different. A lot of money is invested into the house by the builder in terms of permits, materials & labour... it costs far more to hold this property and you can negotiate a discount on these (and show homes) because the builder is more anxious to move it quickly to maximize profits.

You don't really get a 'deal' on free or discounted upgrades either since the profit margins are huge and it costs the builder virtually nothing to discount or include extras.

50c a sq ft for a darker paint color on the walls?

"I suppose we could do that for half price to sweeten the deal."

Of course, darker paint colors costs nothing extra in terms of material or labour. lol. Cash grab.

[vtec4life]

I guess I managed to pull it off somehow. Maybe it was the right season, right before christmas time. And remember I didnt get a discount I got $6000 in "Goodwill" lol. I did also spend about 20K in upgrades though so they made their money back for sure.