Ask This Question When Buying a New Construction Home
Since 2015, sales of new construction homes have been surging at incredible rates. Likewise, builders are working to keep up with the increased demand by producing new construction options more quickly than ever. Of course, with an increase in demand comes an increase in price. In 2016, the average cost of a brand new home was $351,000.
While this number may give many prospective buyers a case of sticker shock, don’t despair. By asking just one strategic question, consumers may be able to find fantastic deals on the new homes of their dreams:
Are there financial incentives available for using the builder’s preferred lender and title company?
This simple question can open up a world of negotiation that many new construction buyers don’t even know exists. While builders are hesitant to negotiate the sale price of a new home due to the precedent it will set in a community full of for-sale homes, they are typically more than willing to offer behind the scenes incentives.
For instance, using the builder’s preferred lender and title company – which may fast-track the sale for the builder – can often lead to a reduction in closing costs. In fact, some buyers save up to $10,000 in this way. Other builders will be willing to upgrade standard finishes – say, from carpet to hardwood floors – for buyers who agree to play ball and use the builder’s preferred lending professionals.
Don’t be put off by the asking price of a new construction home. With some creative negotiation techniques, many buyers attain deals and incentives they never thought possible. You never know unless you ask!
Image via Flickr/madpal