Negotiating Prices on New Build Homes: Is It Possible?

Negotiating on new construction homes can seem like a daunting task, as builders often set prices and floor plans well in advance. But it never hurts to ask. Even if negotiating the price is ruled out, you may still be able to negotiate the floor plan, appliances, or other features of the house. Yes, you can negotiate newly-built homes; it's much better to negotiate for “things” than for money above the purchase price.

Even negotiating closing costs is easier than negotiating the purchase price because builders want the final price to be as high as possible for future neighborhood appraisals. If you're the first or second buyer in the neighborhood, you might get a good deal. Homes will be priced higher after the first sales. Be sure to ask the builder if there are specific houses (houses built with speculation of sale) that have been in their inventory for a while.

Like model homes, you won't be able to choose upgrades and finishes, but if a builder wants to sell, there may be room to negotiate the price. When buying a new build, it's important to take certain steps in order to get the best possible price. Before signing a contract with your builder, make sure you get the best offer by researching prices in the area and asking about any existing model homes that may be available. No matter what stage you're at in the homebuying process, you'll want to get the best possible price on your newly built home.

Model homes fall into this category, and when you buy a model home, you can usually get a good deal on a premium home. If the newly built home you are interested in is in a subdivision, you are likely responsible for paying homeowners association (HOA) fees when buying the home, as well as on a monthly basis. One last tour is necessary before completing the purchase, so make sure it's something you're planning before closing on the purchase of your new home. You can access the county's public records to see how much homes are selling for in the area or ask your builder to compare homes and prices.

Ultimately, the cost will change as you start adding the things you want, so be careful with the price when you start asking the builder for the features of your new home. You'll need to make sure you properly understand what is covered by the builder or other companies that were involved in creating your new home.