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Phoenix Real Estate and Homes for Sale | Jonathan Dalton, Realty ONE Group – (602) 502-9693

Jonathan Dalton
REALTOR
ePro, SFR
602-502-9693

Negotiating With Builders

Negotiating With Builders

Jonathan Dalton, Phoenix Real Estate AgentTwo recent examples …

1) Pulte Mortgage has not been able to match the interest rate one of my buyers can receive from their own bank without charging points. There are incentives in the contract tied to the use of Pulte Mortgage so it’s not as simple as switching lenders. Theoretically the builders’ lender is supposed to have competitive rates. I’m in talks with the sales folks and we’ll see where this goes.

2) For the same client, I negotiated a $12,000 reduction a couple of months earlier when costs at the design center rose from earlier estimates. So we’re coming close to $20,000 in negotiated reductions.

3) A different client was looking at specs, one with with a gas range and another with an electric range. She doesn’t like gas but liked the home surrounding the oven. So I asked the builder if they can switch ovens out between the specs. Answer pending.

Like most aspects of home buying, these negotiations can be handled without the use of an agent. But taking the emotions out of the equation by negotiating through a third party, as is taking place in these examples, gives a buyer considerably greater leverage.

And these are just a couple of examples. For more reasons why you ought to have an agent with you when you visit a new build (and we have to be there on the first visit), click the link.

[tags]Phoenix real estate, new builds, new home construction[/tags]

Comments

  • I always get the builder lender Good Faith Estimate and a 3rd party lender at contract time. The only thing that should change is the interest rate due to market changes. That gives my buyer more leverage when the builder loan deal magically becomes more expensive as the closing approaches.

    The buyer has to then weigh the incentives vs the more expensive builder mortgage.

  • Jim Duncan says:

    This point deserves highlighting again:

    But taking the emotions out of the equation by negotiating through a third party, as is taking place in these examples, gives a buyer considerably greater leverage.

    Absolutely. Buyers’ emotions can (understandably) run the gamut. Having a good Realtor as the mediator can be invaluable.

  • Thomas – the interest rate is what ended up changing. The issue is the rate’s less competitive than what his own bank can give him, which wasn’t the case at the start of the transaction.

    Jim – much appreciated.

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