Special offer

The Fine Art of Negotiating with a Builder

Real Estate Agent with KB Home Bre # 01424127

The Fine Art of Negotiating with a Builder  or tips to help you secure the New Home of your dreams.

Yes it is true, you are entitled to enter into negotiations with builders. Many buyers are surprised to learn this fact believing that prices are written in stone or they mistakenly submit low offers which are quickly rejected. However insiders (or former new home consultants) are aware of certain facts which are useful during the negotiation process.

Community quotas provide buyers with a great opportunity simply because they exist. Have you considered that each sales consultant or community must achieve monthly goals in order to be productive (or to keep a job.) Therefore timing is an aspect you should consider when submitting an offer. Month end negotiations are often more successful due to the requirements of achieving community goals.


Stage of construction is important in negotiations. "Move-in ready" or "quick move-in homes" are wonderful opportunities for negotiations. The builder has already invested in this home and it needs to be sold now! Not only can pricing be negotiated but remember these homes often include additional upgrades to compensate for the lack of an opportunity to personalize the home.


kitchen faucet

Options - Builders are more inclined to offer additional upgrades or options because of costs. Builders are able to leverage their dollars by purchasing options in bulk which they can pass onto you, the buyer. Note - upgrades can only be added based on the stage of completion and cut-off dates. Options impacting the foundation, wiring, plumbing are usually to costly to modify once completed.


Best secret weapon -A Realtor familiar with negotiating techniques, a knowledge of the new home community and the builder. You do realize that the friendly Sales Consultant is a Sellers Agent representing the Builder and their best interest.


Yes there is a fine art to negotiating with Builders,

Call me....there are many more strategies which can help you achieve your dream home and create a win/win for all parties involved.

I would be my pleasure to assist you!






Posted by


If you are considering  buying or selling new construction in the Inland Empire ~ Give me call or email me 

Cause We Like Em' New!


Kristal Wilson                                           

cell: 951- 288-7079

Shoot for the moon & if you miss you'll be among the stars



Arleen Montford
Selling NW Florida Homes in Pace/Milton/Pensacola FL

Hi Kristal, What a great job. I can tell you put a lot of thought and work in your post. Thanks for sharing with us. I think it is worth a STAR! So I pushed the suggest button.

Feb 09, 2011 02:20 PM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Arleen & Tracey, I truly enjoy new home construction so I can write passionately about it. Thanks for the star/suggest.

Feb 10, 2011 05:27 AM
Ilyce Glink
Think Glink Media - Chicago, IL
Best-selling author, award-winning TV/radio host.

Great advice. Here is a piece that I wrote back in October about the things that a builder (even a good one) will try to avoid telling you: http://real-estate.equifax.com/2010/10/buying-new-home-here-are-5-things-your.html

Hope it helps!

Feb 10, 2011 06:17 AM
Craig Hatcher
Georgia Residential Realty, LLC - Atlanta, GA

Great tips. Especially stage of construction. Builder's don't want to start paying on an certificate of occupancy in my market they would much rather sell and get it of their hands!

Feb 10, 2011 06:37 AM
Kristi DeFazio
RE/MAX Advantage - Colorado Springs, CO
Colorado Springs Rea lEstate 719-459-5468

Nice tips when working with a builder. The important thing to know is that experienced representation can save the client a lot of money and headache when dealing with new construction (in my experience).

Feb 10, 2011 06:57 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Congrats on the feature Kristal and welcome to ActiveRain.

Feb 10, 2011 07:17 AM
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

Good insights for working with builders, Kristal. TIming the offer to coincide with quota deadlines is an excellent idea.

Feb 10, 2011 07:39 AM
Jim Gilbert
Samson Properties - Fairfax, VA
The Gold Homes Team

  One of the kinds of negotiation that comes up sometimes is negotiating for release of the earnest money if the buyer has a change of heart. I have found the services of my broker's attorney most helpful in this regard!

Feb 10, 2011 07:58 AM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Ilyce, great information to consider when purchasing a new home particularly since many Builders declared bankruptcy here in So. California.

Hatcher Team, the CO is the before & after line.

Kristi, I agree and buyers definitely benefit from experienced representation.

Charita...wow I'm excited.

Thanks to all!


Feb 10, 2011 08:01 AM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

John, timing really can assist you when negotiating.

Gold Team, I've noticed a few Builders playing hardball.

Feb 10, 2011 08:08 AM
Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Central Maryland

A well deserved feature. Great tips. I wish the re-blog feature was working.

Feb 10, 2011 08:45 AM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Ellie ~ glad you enjoyed!

Feb 10, 2011 09:30 AM
Renée Montgomery
Century 21 New Millennium - Warrenton, VA
Northern Virginia Real Estate

A well informed buyer working with a knowledgable realtor can get some great deals with builders.

Feb 10, 2011 11:00 AM
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Hi Kristal, great post. New Construction is something that I want to start getting into this year. Thanks.

Feb 10, 2011 12:00 PM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Renee ~ I totally agree.

Eric ~ good luck to you.

Feb 10, 2011 12:03 PM
MeLisa Minter, Realtor
Minter Real Estate Services - Taylor Lake Village, TX
Bay Area Houston Real Estate Agent

Kristal this is great info. and it is exact.  I used to be a New home sales consultant for a builder and month-end meetings were like going to the principal's office.  Every week we would have to write the number of sales that we were closing or had in the pipeline.  I hated that part.

Good job on this and congrats on this featured post.

Feb 10, 2011 02:23 PM
Brenda, Ron, Lee Cunningham & Tara Keator
West USA Realty - Phoenix, AZ
Realtors, Homes for Sale - Phoenix Metro

Great tips, thanks for sharing.

Feb 10, 2011 02:59 PM
Demarco & Marisa
Remax Kings Realty - Riverside, CA
"The Choice is Clear!"

This is so true. I just helped a client negotiate a great deal with a builder on their last two standing inventory homes in the community. Not only did he get a great price, I helped him understand why he should use his lender vs. the builder's lender (and promise of incentive).... much better interest rate. I love working with the new home builders!

Feb 10, 2011 07:01 PM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Melisa, sometimes that visit to the principal's office was rough!

Brenday & Ron, you're welcome!

Marisa, hey i was saving the financial part for a different post. ;)

Feb 11, 2011 08:14 AM
Patricia Feager, ABR,CRS,GRI,MRP
Selling Homes Changing Lives


This is a good and thoughtful post. Working with builders can be challenging so good negotiating skills is critical and it sounds like you know what you're talking about!

Feb 19, 2011 08:36 AM