I try to spend at least part of my weekends visiting open houses and new construction developments. I like to see what the available stock is, and knowing what the models look like first hand allows me to be able to discuss them pros and cons of a development with my clients.
I'll Give Your client $60,000 If They're Serious...
At any rate, I was in Accokeek, MD yesterday visiting model homes, and when I asked for the price list, the developer's representative told me that she was allowed to knock $60k off of any listed model price! I won't say that builders name here (I'm not out to get people in trouble with their clients), but let's just say I was floored by the statement!
How kind of her, I thought. She's already doing the negotiation for me! She knows how overpriced these models are, right? She's just trying to be helpful and let me know how affordable they can really be if I let her "negotiate" for me and my client!
I wonder if they tell everyone that their product is over-priced, or if it's just us Realtors? I've noticed that most builders have become more flexible with their prices, and many have offered price drops, and they're often being forced to negotiate down from there.
This is a big opportunity for some. I recently had a client looking for Foreclosures in the $400,000 price range. After looking at everything that met his criteria, we found that we were actually able to negotiate 20% off the price of a NEW home, and he was able to get the options he wanted without have to deal with the work and concern commonly associated with foreclosures.
Obviously, this doesn't work for everyone, but given the situation and the ability to negotiate the price on a new home down so low, why WOULD you consider a foreclosure (and all it's headaches)?
It makes a good argument for working with a Realtor when it comes to new construction, though. Why on earth would you risk leaving money on the table for the builder to pocket if there are people who can ensure you save AS MUCH AS POSSIBLE without coming out of your pocket?
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