I’m interested in a home for my primary home, that is going to be built as a spec house in a community that is going to go to close out at the end of this year. The house is a spec house and not being finished out to our design details. The builder wants to finish the 5 houses (which include this one) to be closed by December 1 for the 8,000 tax credit. It’s a 4/2 1-story with a study. 4 side masonry. Tax rate is 2.42. Fireplace is additional option, but something I want in the house. The list price is going to be 227,000. It’s also a corner lot down the street from a new elementary school.
I know you can make really any offer. But for a 227,000 new build what offer should I start out with? Thanks for your help!
No one can answer this question but you! You can find out from a local Realtor what houses go for in your area. You can check with the county tax assessor what recent sales have gone for.
Next, what can your budget afford? Get a number and stick to it.
Of course there’s always the philosophy: “If the seller isn’t insulted by your first offer, it probably wasn’t low enough!” Caveat emptor! :biggrin
As a general rule, builders don’t discount their properties. They have construction loans to pay off and their margins may not be high enough to offer any significant discount. Instead of giving price discounts, builders are more generous with amenities and upgrades.
They don’t want to sell you a home for less than your neighbor paid for the same house, but to get a property sold builders often give away expensive upgrades, landscaping, and decorating packages, often totalling $30K and higher.
Maybe you could get some of those optional add-ons included at no charge.