It has been our experience in the Chicago area that builders are offering some very nice discounts off of "list price" as well as extra incentives.  Unfortunately for home buyers that"just happen to be driving by" one day - they go into a builder's development - non-the-wiser that they shouldn't be signing in without the agent along with them - that they want to represent them.

Having an agent to protect you (negotiation, running comps, knowing what the past and recent deep-discounts were in a given development (so you can get the same thing or better), referring a good inspector for "pre-drywall and final walk-through inspection." negotiating with the builder (keeping on them like a hound dog) to complete punch list items on-time, taking care of the many items necessary to help the buyer get to closing, checking for errors in the HUD-1 at closing, helping the buyer shop for the best loan rate and fees (which may or may not be what the builder is offering through their "in-house" or builder-owned lender), ensuring you get good faith estimates and that the amounts from the lender that you choose - matches the amounts at closing, negotiating hold-offs at closing if some punch list items still aren't complete...  This is all part of the value of having an agent represent you for new construction.   Are the building plans and specifications sufficiently detailed to avoid disagreement once construction has started?  You need someone on your side to help protect you through that process.  

Negotiated price-off on new construction in the Chicago IL area can run anywhere between 5-15% off of list (depending on the dollar volume of extra upgrades that are negotiated in..)

Representation doesn't cost you anything - and usually saves you thousands (in extra price off, extra incentives and increased fixes by the builder etc.)

The builder loves it when a buyer signs in by themselves - because the builder doesn't have to pay out (for example) the 3% that they budgeted to pay to the agent with the buyer.  (And some payouts are now 4-5% and greater.)

Unfortunately for the buyer - if they want to have representation after they signed in by themselves the previous week - they are out of luck.  No agent will represent that buyer on the development if they aren't going to get paid (unless they get paid by the buyer themselves - but unfortunately for the buyer - because they signed in by themselves - there is no reimbursement by the builder.)

As a buyer - DON'T EVER PAY LIST PRICE - from a builder.  

There have been plenty of builders have told me they they are not budging off of their list - and then when I wait them out -- the next week - they say "ok - I talked to the manager - and we'll give you another 30k off"   

On spec homes - you should be able to get even more off.  Spec homes are "inventory homes" -
Why are spec homes a good deal?

Builders, like all retailers, need to move inventory. Excess inventory can eat up a developers profit and be a significant drain on cash. In these circumstances they are willing to offer discounts to move the units.

Upgrades for new builds have a high profit margin so the builder isn't losing money by discounting the upgrades and the buyer benefits by getting a good deal. It typically would cost much more to build a duplicate house, which makes the spec a good deal.

Reasons builders and developers have spec homes:

 Some builders will build a certain amount of spec homes to have an inventory for immediate sale. Not all buyers can wait to build a new home and some will be looking for an immediate move in.

The builder may have started construction for a particular buyer but for a variety of reasons the buyer is now no longer able to purchase the home. If the buyer has selected upgrades for the home the builders are often willing to discount them to move the house.
 
Depending on how finished the spec home is, you may be able to customize some aspects of it. You may get some of the benefits of a spec home and still be able to make enough selections to personalize the home.

Beware of builders that also own the lender and the title company and the appraiser (in an extreme case) - as these are HUGE CONFLICTS OF INTEREST.

Again - You will want to get a pre-drywall inspection   Builder's try to discourage that - by saying "the home has already been inspected and approved by the city."  That city inspection is a joke.  And the builder's own "inspectors" are a joke.  You need someone who will run through the unit with a fine tooth comb - to point out and report on the typically 50-100 punch-list items that need fixing.

It is important to let your builder know up front that you intend to have the work inspected by an independent third party construction expert.  This may help to set a tone with the builder and let him know that you expect things to be done properly.  We recommend that buyers have a structural engineer inspect the foundation prior to the pour.  A follow up inspection should be conducted after the foundation has set up.  Then - have an engineer map elevations of the home.  These elevations can serve as a baseline to compare with any future movement that may take place.  We can help you choose a responsible structural engineer.

Pre-drywall inspections (also called rough-in and framing inspections) are important because they you to catch problems that will not be apparent once the drywall is installed.  It is performed after the basic structure of the house is complete; the framing is up, the windows are in, and the electrical, plumbing, heating, and cooling systems have been installed but are still exposed. This is the most important inspection that can be performed on your new home. Once the finish wall and ceiling coverings are installed, these components are no longer visible for inspection.  Electrical, plumbing, and mechanical issues can be discovered and corrected - before it is too late.

The final inspection should be conducted after all utilities are turned on and the appliances are installed.  The builder should be provided with at least one weeks notice of each inspection.

It would be impossible for me to describe all the potential hassles and problems related to skipping the inspection process.  There are usually tons of problems with any new construction home.  Unfortunately - many home buyers learn that fact too late - because they either had inferior representation - or no representation at all.

We view ourselves as consumer advocates for the buyer -  here to protect your best interests.

Most builders seem to be more concerned with quantity of turnover versus the quality of construction.  It is not difficult to build a home that will be somewhat free of problems during the time of the builder warrantee. 

It is an entirely different process to build a home that will be in good condition, assuming proper maintenance, 30 years after construction.  Of course - you may not be in the home 30 years down the road.  However, you will probably be in the home after the warranty has expired.  When you go to sell your home n the future, chances are good that the purchaser will hire an independent inspector.  It would be a shame for you to be put in the position of having to pay for the builder's mistakes at that time.

The inspection process can be very educational.  You will likely walk away from the inspection with knowledge of your home that you would not have otherwise received.

 There are typically about 50-80 or more punch list items that need to be taken care of by the builder (various defects) in any new home - and you have to stay on them to get them to be taken care of before closing.    (Having a good inspector reveals those to you.  Don't just use the builder's on-site person who is affiliated with the company - who may only point out about 1/4 of issues that an inspector does.)

We cover downtown Chicago and Chicago's Suburbs - to include:

    *  Addison
    * Algonquin
    * Arlington Heights
    * Antioch
    * Bannockburn
    * Barrington
    * Barrington Hills
    * Bartlett
    * Berwyn
    * Bloomingdale
    * Buffalo Grove
    * Carol Stream
    * Cary
    * Chicago - Downtown and Near North - includes areas such as River North, Streeterville, Gold Coast, Loop, East Loop, West Loop, Printers Row, South Loop, Wicker Park, Wrigleyville, Ukranian VIllage, Lake View, Logan Square, Lincoln Park, Lincoln Square, Ravenswood, Andersonville, Uptown, Edgewater, Bucktown, Rogers Park, Portage Park etc.
    * Crystal Lake
    * Deerfield
    * Des Plaines
    * Downers Grove
    * Elgin
    * Elk Grove Village
    * Elmwood Park
    * Forest Park
    * Fox River Grove
    * Fox Lake
    * Geneva
    * Glendale Heights
    * Glen Ellyn
    * Glencoe
    * Glenview
    * Grayslake
    * Gurnee
    * Hainesville
    * Hanover Park
    * Hawthorn Woods
    * Hanover Park
    * Highland Park
    * Highwood
    * Hoffman Estates
    * Island Lake
    * Itasca
    * Johnsburg
    * Kennilworth
    * Kildeer
    * Lake Bluff
    * Lake in the Hills
    * Lake Forest / Lake Forest
    * Lake Zurich
    * Lakemoor
    * Lake Villa
    * Libertyville
    * Lincolnshire
    * Lindenhurst
    * Long Grove
    * Maywood
    * McHenry
    * Medinah
    * Melrose Park
    * Mount Prospect
    * Mundelein
    * Naperville
    * Northbrook
    * Oak Park
    * Palatine
    * River Grove
    * River Forest
    * Riverwoods
    * Rolling Meadows
    * Roselle
    * Round Lake Beach and Round Lake
    * Schaumburg
    * South Elgin
    * Spring Grove
    * St. Charles
    * Streamwood
    * Vernon Hills
    * Villa Park
    * Warrenville
    * Wauconda
    * Waukegan
    * Wheaton
    * Wheeling
    * Wilmette
    * Winnetka
    * Wonder Lake
    * Wood Dale
    * Zion

 Builders in the Chicago Illinois area include:  Ryland Homes, Lakewood Homes, Toll Brothers, Lexington Homes, Liberty Lakes, Centex Homes, Pulte Homes, Alexander Homes, Arbor Glen, Aspen Homebuilders, Bigelow Homes, Del Webb, Kensington Homes, KB Homes, Joseph Freed Homes, Pasquinelli Homes, Remington Homes, Ryland Homes, Vertex Builders, and many more.