You may prefer to get a house built rather than moving into someone’s property and call it home. Buying a new construction can have its upsides, but it can be tricky to negotiate the best deal with a builder. Builders tend to be hesitant about negotiating prices based on their focus on higher profits. Here are some ways you can leverage your options as you negotiate the best deal with a builder.
Looking for financing
You should try to look for financing at the best possible credit rates yourself. Builders tend to convince prospective buyers to work with a lender of their choice or their own mortgage company in some cases. However, buyers would not always be able to avail the best credit terms. The best approach in case you get a better deal than the builder’s preferred lender is to take it to them and ask if they can do better.
Asking for a discount
While builders may not usually be willing to offer a discount, you may still get lucky. This is especially a possibility where a builder has surplus inventory of completed houses. Builders would wish to sell these houses as quickly as possible and make a profit on their capital. In addition, selling off houses quicker would help builders save on holding costs that they would otherwise incur for any remaining inventory.
Asking for help with closing costs
You may choose to ask the builder to help with closing costs rather than offering a discount on the total purchase price. Closing costs includes costs like inspection fees and application fees, which may represent up to 5% of the purchase price. A builder may be able and willing to pay at least a part of the closing costs to facilitate you.
Negotiating the best deal with a builder may seem like a difficult task but it does not have to be if you follow these tips when buying a new construction. You can get in touch with me for any assistance or advice about buying or selling a home in Greater Boston. Feel free to call me or send me an email or get in touch on Facebook.
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