I’m looking to purchase 3 - 4 new construction homes. How much of a discount can I ask the developer for if they cost, say $150K each?
You typically don’t get discounts from a developer. You can get upgrades like extra parking spots, fancy kitchens or nicer appliances. If a developer cuts his price on one unit, and he has 50 units to sell, he cuts his price not once, but 50 times. For that reason they don’t like to do it, but some have in a soft market and it gets all the other previous buyers mad at them. Better to negotiate for other non money items that won’t show up in the closing price.
well, actually I have found a builder who gives discounts for multiple purchases (although I’m sure some free upgrades might be part of the deal as well). I’d rather have a discounted price and get built in equity and am interested in knowing if anyone else had gotten a good discount. I don’t want to ask for too large of a discount and lose the deal but I also don’t want to ask for too little. So, it’d be good to find out what kind of discounts others have managed to get
I have come across a few developers that are investor friendly that will give a discount in FLorida but you need to buy 10units and the discount was about 2% of the purchase price so nothing to great.
Many developers will not discount or even throw in freebies because the lower prices will decrease the value of their homes on the comps which will affect them and the resale of the homes in the future.
Developers are planning it much safer today in not being the ones to be accused of setting the market place in pricing.
Is it possible (or even legal?) to close at a particular price and get a “rebate” back in the form of a check? Obviously you’d have to declare it on your taxes and all that happy horse poo but is it otherwise legal? From the developer’s standpoint he’d be keeping his prices up there and it wouldn’t be on a comp and the other buyers won’t see it on their radar with a different closing price. Is this a possible workaround?
What you mean is cashback at closing and with a construction loan you can not get cashback to my knowledge as the loan is paid in draws unless your doing it as a spec home and putting down 5% or so and then once the house is completed then your getting the loan in place.
From my experience with talking to over 50 builders in Fl, they really do not care about YOU. They do not care to discount prices really or have to bargin with the price. They have tons of people coming in and know they will sell there homes. Thats is why they raise prices after X amount of homes are sold or as the value of land increased…
Just ask the builder if they will give you a credit, do not bother fighting with them, they will just let you walk since your probably not dealing with the owner anyway but the sales agents that have no approval process there.
its that attitude from the builders that drove me out of Florida - they put too many restrictions on investors and prefer not to sell to us anyway. with the ever increasing property taxes I don’t know how people can invest there anymore. That’s not the case in every state however and no, I didn’t get this info from some lowly sales agent.
florida builders have gotten tough. Mercedes homes is probably the best investor friendly company out there still doing assignables on all homes but 10% downpayment which can be steep.
builders are trying to protect themselves from lawsuits now after several got sued in Nevada after dropping prices more than 20% on the same homes in which buyers who bought about 5months prior still didnt have there homes completed and new peoiple were buying for less…Pissed off alot of people…
yeah I can understand how they feel… I looked into Mercedes homes but rents haven’t gone up to match the prices. Even with 10% down, the homes wouldn’t cash flow. I’ve got 140K coming from a 1031 exchange so I’d like to maximize the cash