New Home - Negotiating?

[rach]

[QUOTE]Originally posted by 403ep3
[B]Thanks for all the information.

Just a FYI for anyone: I went to Nolan Hill and looked at a few new lots with green space/walk paths and its roughly 50k more than Symons Gate, but the lots are a ton better and might be worth that extra investment. Very much leaning on NOT going with Symons Gate now because there is basically no green space, parks, and amenities.


I know Nolan hill has alot of ZERO LOTLINE Lots..but not sure why its more expensive than symons gate..

[pk_jai]

After you purchase a brand new house does it tell you the cost of the house?
Like how much it cost for the land and building materials?

[rvd]

Originally posted by 03ozwhip
Man, I'm building a 1900sqf with a walkout and a triple for less than 3/4 of that price. Granted that's not in calgary but still.

What area outside the city are you building in ?

[03ozwhip]

Originally posted by pk_jai
After you purchase a brand new house does it tell you the cost of the house?
Like how much it cost for the land and building materials?

You get all that info from the building center, ie: the show home.

Originally posted by rvd


What area outside the city are you building in ?

I'm building in Strathmore. Yes the lots are cheaper out here and so is building the actual house. After a lot of shit with the town and developer, finally, as of today, we have a hole dug.

[SportEL]

So you guys are saying there is more negotiating room if you didn't have a realtor? I didn't think that was the case.

[Sugarphreak]

...

[macman64]

I think one thing to keep in mind with this market. Sure housing prices are down but they won't sign deals that aren't profitable. The dollar is driving most materials up in cost. Labour may be dropping but I am not sure how much that makes up for it.

I would be interested to see some data of what the numbers look but that is hard to come by. Numbers I have found show 10-15% margin before the economy started to drop. Between the dollar and the dropping demand I am sure this is lower but would be interested to hear if others have more data.

[yellowGTS]

The area of Nolan Hill is great, there is a lot of greenspace and a large selection of lots (zero lot lines, plus regular lots). It also has great access to Beacon Hill shopping, Costco and the new Sage Hill Plaza (WalMart, Sobey's, etc)

With these homes, you need to be clear what your budget is and whether you want a zero lot or regular lot. I went by Homes by Avi last week and they were offering a similar plan to their showhome for $600k (2400sqft).

I was also able to confirm this was NOT a zero lot line, but the sales guy told me a zero lot line would be cheaper.

[403ep3]

Originally posted by yellowGTS
The area of Nolan Hill is great, there is a lot of greenspace and a large selection of lots (zero lot lines, plus regular lots). It also has great access to Beacon Hill shopping, Costco and the new Sage Hill Plaza (WalMart, Sobey's, etc)

With these homes, you need to be clear what your budget is and whether you want a zero lot or regular lot. I went by Homes by Avi last week and they were offering a similar plan to their showhome for $600k (2400sqft).

I was also able to confirm this was NOT a zero lot line, but the sales guy told me a zero lot line would be cheaper.

Which model is this? I was taking a look at the caldwell and trying to figure out what to offer if I decide that I want it

[yellowGTS]

This was the Hawthorne model. Looking at their website, the Caldwell looks almost identical but with more square footage

I think if you are somewhat reasonable on your offer, there may be a chance to get something to work out.

What were you thinking of putting forward as an offer?

[403ep3]

Yeah it's the larger size. We really like the window, but the lots are so pricey in nolan, 250k!!! We are hoping to make something work to get it 20-30k cheaper somehow.. Not sure how though.

Seems like all builders have a 30k in free upgrades promotion, but you have to use it or lose it. Seems like times are tougher as the previous promotion for avi was 15k off a basement Reno I think

[yellowGTS]

Originally posted by 403ep3
Yeah it's the larger size. We really like the window, but the lots are so pricey in nolan, 250k!!! We are hoping to make something work to get it 20-30k cheaper somehow.. Not sure how though.

Seems like all builders have a 30k in free upgrades promotion, but you have to use it or lose it. Seems like times are tougher as the previous promotion for avi was 15k off a basement Reno I think

I think there is an opportunity to have a conversation. $15-20k doesn't seem unreasonable, however, that does work out to be approx 5% off the price. If the above post is accurate and there is 10-15% margin, you could have a chance at making a deal.

[403ep3]

Well I just came back from talking with Trico because they could be an option too. They are throwing 30k upgrades (or off the price of the home.. Avi didn't allow this?) and also another 25k off the lot as their "red tag" fire sale.

If Trico is doing this then why can't others is my thought? so that 15-20k may not be too far fetched for Avi.

Hope this helps anyone also looking

[gwill]

Comparing houses between builders isn't as easy as just looking at price.... And just because one builder is willing to start at a $25k promotion doesn't mean they didn't jack the price by $10-15k to give them this wiggle room.

In the last 9 years I've only seen one truely great promotion in new home sales where the builder went to all their trades and requested discounts on one specific model... Most of the times your seeing jacked up prices that allow them to lower the price more.

[yellowGTS]

I did notice that the standard options are a little different between each builder, that could play a factor in promotions as well.

I also noticed that Trico in Nolan Hill really didn't have any homes on greenspacem but Avi had a few. This is big for me. I prefer to have a greater distance between myself and any neighbour, or trampoline.

As for a house, do you like any of the floor plans or are you just looking for an investment?

[403ep3]

Yeah, you definitely can't compare when apples aren't to apples.

The house is basically going to be our house for the next 20+ years and that's why we are going for a decent size for just having currently two people.

[yellowGTS]

A house over 2500 square feet for $600,000 is not a bad deal, especially after the big Calgary boom.

I do like the Caldwell plan, it has really great sized rooms, plus I like that Avi gives you a big shower and tub in the ensuite.

It really looks a lot like the Hawthorne plan that I am strongly considering

[BigDL]

Avi was pretty good to deal with when I built with them in Nolan Hill. Cory was pretty easy to deal with.

[403ep3]

From our negotiations so far the builders are still holding on to their prices and standing pretty firm. May not be the best time to buy new construction

[sputnik]

Originally posted by 403ep3
From our negotiations so far the builders are still holding on to their prices and standing pretty firm. May not be the best time to buy new construction

They will be holding their prices firm for a long time. What you will see change is how much house you get for the price. Things that used to be heavily marked up options will now come standard.

As things get tougher you will see higher allowances for kitchens/flooring/appliances/lighting. You will see better construction using better materials included like Hardie, granite/quartz, stamped/aggregate driveways. Even higher quality windows, doors and plumbing fixtures.

Eventually I wouldn't be surprised to see houses being built standard with finished basements.

It will take a LOT before the base prices come down too far.