Can you save money on new construction? We all know that the asking price of a resale home is negotiable. But, what about new construction? Can you negotiate that price? Yes, and no. Builders don’t like to discount their homes. But, a price reduction isn’t the only way you can save on new construction. Here’s a few ideas on how to save when purchasing new construction.
Bring a Realtor with you
Many people don’t know that you can bring a Realtor when you buy new construction. But you need to realize that the salesperson works for the developer – not you. When you use your own Realtor, you have someone looking out for your best interests. Especially, if you bring a Realtor who’s experienced in new construction sales.
You see, while builders don’t like to discount their prices, they often will discount the upgrades. And an experienced Realtor can help you save money when buying new construction.
And the best part is the builder pays the Realtor’s fees!
The builder gets volume discounts on many upgrades, such as flooring, counter tops etc. And often, these options can be discounted. So, don’t be afraid to ask. All they can do is say no. Your Realtor should be able to give you some guidance on these items. However, there are other options that you can add after closing which will cost you considerably less. A Realtor can suggest what some of these options would be. Which brings us to the next section.
In New Jersey, the real estate taxes on new construction are based upon the sale price. While that paver patio would be nice on move-in day, it adds to the price of the home. And often, you can have your own contractor install it. In fact, it would probably cost less. And you won’t be paying real estate taxes on the cost of the patio. This is just one idea that can save money on new construction.
Reduced Financing Costs
Many builders buy down the interest rate, thereby making the homes more affordable for buyers. Often this is tied to using the builder’s in-house or preferred lender. But that doesn’t mean you can’t use another lender.
Do your research, because talking to multiple banks or lenders may yield you a better deal, even with the builder’s incentive.
Oftentimes, developers build homes on lots that haven’t been purchased yet. This keeps the construction crews busy, and provides the builder with homes to sell when buyers need to move quickly. When purchasing a spec home, you can save in many ways.
Usually, these homes already have the popular upgrades. Already included are the hardwood floors, upgraded appliances and moldings. In addition, the developers want to move these homes to free up working capital. Therefore, they are often more amenable to reducing the prices on these homes.
Everything above, and more, is what a Realtor who’s experienced in new construction sales can help you with.
Here’s a good idea to save money on new construction