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Will The Cincinnati Home Builder Negotiate Price?

By
Real Estate Agent with Transaction Alliance 513.520.5305 www.LizTour.com SAL.2002007747

new constructionIt's a common question and tied to one of the biggest myths about Cincinnati home buying.  "Will the builder negotiate price?".

"And surely if I show up without my own real estate agent they'll AT LEAST reduce by the price of the agent's commission, right?".

Now I can't speak to what every small builder in the Cincinnati Ohio market will do, but I can speak for the major builders in our area (Drees, Fischer, M/I, John Henry, Cristo, Inverness, etc.).

There are two times they'll give buyers a price break:

1.  When a home is completely finished and they don't need it to show other potential buyers.

2.  When they're running a promotion on build to order homes.

That's pretty  much it for getting a deal from the builder.  You'll notice that NEITHER of those two situations stated  "and if you show up without an agent!".  Fact is agent pay is built into their overall community overhead, so they don't pass on any "savings" to the buyer who shows up unrepresented.  That buyer is paying for representation whether or not they have any of their own.

If you walk in the model and order a home from the major builders, it's a la carte pricing, minus any promotional incentives.  Don't like the final price?  Decide what you can live without until the home's price meets your budget.

On the other hand, if the builder has a finished home (either because they built it as a market speculation home or because the buyer couldn't complete the sale on a build to order home), THAT is the time you and your agent can possibly get a seriously good deal on a home.  The builder wants to free up their capital, and selling that home is the fast way to do so.  The longer that home has been completed and not sold, the more likely the builder will be willing to negotiate on that asking price.

Other questions about buying a new construction home?  Call The Liz Spear Team of RE/MAX Elite at 513-520-5305 or email Liz@LizSpear.com.

Serving Warren County Ohio area home buyers and sellers,

Liz and Bill aka BLiz

 

Posted by

Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of Transaction Alliance
Elizabeth Spear, ABR, Ohio License SAL.2002007747

William (Bill) Spear, Ohio License SAL.2004011109  Kentucky 77938
Ask for us by name if you visit the office!

EHO
Bill Direct:  513-520-5305
Liz Direct: 513-265-3004     
Fax: 866-302-8418

MailTo:  Liz@LizSpear.com

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Comments (5)

Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

BLiz

Great overview and response to an important question - I get it often - and I would respond in the same manner. New homes are a different animal in many ways than resales, and buyers need to understand how so.

Jeff

May 22, 2017 06:01 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Last year we had a local builder who offered to pay up to $5k in closing costs, we had a cash buyer who had about $1500 in closing costs so we did get him to agree to $3500 in upgrades for our buyer.  But no way was he goint to have a lower comp in the subdivision by a price reduction.

May 22, 2017 07:57 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Bill and Liz. Seldom do buyers want to believe us when we state this truth. I have friends of 40 years who still think they know better.

May 23, 2017 05:33 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Bill - While we have seen markets that generated more builder flexibility, they didn't look anything like our current market conditions, which heavily favor the builders. But like your market, our builders have never rewarded unrepresented buyers.

May 23, 2017 11:35 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

It may not be his decision to make, but I understand that people want to make a negotiation happen.

May 23, 2017 11:00 PM