Recently, I received an offer for one of our well-priced new construction ENERGY STAR homes located in a gated neighborhood. The offer, from another agent, was on behalf of a buyer who still needs to get his current house closed. The time-line for contingencies was not to begin until that house passes appraisal. His pre-approval letter gave the address of the listing, but there was not a monetary amount included. I considered it worthless.
In addition, the offer was priced $10,000 below list and included another $12,000 in concessions. The agent called and encouraged me to get the builder to sign it asap, as he was heading to Hawaii in the morning. Really? You send a lousy, incomplete, and sloppy offer, and I'm supposed to get this one turned around in a hurry to meet your vacation schedule? This was not the way to get a transaction off on the right foot.
Naturally, the builder turned it down. We did write a new offer, on our builder forms, for full-price and it included a couple of concessions requested by the buyer. Our new offer reflected the current marketplace - and the price per square foot was in line with recent sales. This home sits on one of the best lots in the subdivision with private green ways in the back, and no neighbor on one side.
The agent and his buyer sent us a counter. The new deal was still below list and they asked for $8,700 in closing fees. Plus some custom changes to the interior finishes. At this point, the builder is starting to get frustrated. Believe it or not, you can insult builders, just as you can private sellers. In addition, I was getting frustrated as I explained to the agent what it would likely take to get the offer approved.
Finally, the agent did send another verbal, with a more reasonable net for the builder. However, by the time I communicated that offer to the builder, he was so fed up with the game, that he turned it down. It seems the only way this buyer is going to get this house is by offering full price, with no concessions. The buyer, and his agent, set themselves up for failure - not a smart move if you want a home.
Yes, you can insult a builder.