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How to negotiate new home price with home builder?

  • Last Updated:
  • Aug 17th, 2017 2:59 pm
[OP]
Newbie
Nov 24, 2016
68 posts
14 upvotes

How to negotiate new home price with home builder?

1st time home buyer, how should I negotiate new home price with home builder?

Any article/website or experience here can share?

Thanks in advance!!
37 replies
Sr. Member
Nov 30, 2011
646 posts
153 upvotes
GTA
Good luck. Builders don't usually negotiate. If you don't buy someone else will. And if you decide not to and then change your mind a month from now the price will have increased $20K.
[OP]
Newbie
Nov 24, 2016
68 posts
14 upvotes
westcoastyvr wrote:
Aug 12th, 2017 6:36 pm
Good luck. Builders don't usually negotiate. If you don't buy someone else will. And if you decide not to and then change your mind a month from now the price will have increased $20K.
Disappointed But Relieved Face
Thanks anyway~
Newbie
Aug 10, 2017
52 posts
19 upvotes
westcoastyvr wrote:
Aug 12th, 2017 6:36 pm
Good luck. Builders don't usually negotiate. If you don't buy someone else will. And if you decide not to and then change your mind a month from now the price will have increased $20K.
Yep pretty much this.
However it's been a sellers market for the last couple years and isn't exactly that in Toronto right now.
Still probably not going to be able to negotiate.
[OP]
Newbie
Nov 24, 2016
68 posts
14 upvotes
cdndeal wrote:
Aug 12th, 2017 6:57 pm
Yep pretty much this.
However it's been a sellers market for the last couple years and isn't exactly that in Toronto right now.
Still probably not going to be able to negotiate.
Forgot to mention I am in Calgary, I know it is crazy in vancouver and toronto, lol.
Deal Expert
Aug 2, 2004
23911 posts
2301 upvotes
East Gwillimbury
You can't negotiate price. If you look, there are people lining up trying to buy new builds.

What you can negotiate are the options. Builders usually offer $10,000 for upgrades, ask for $25,000. Make sure you fix the closing costs too. Don't want that to get out of hand.
Newbie
Aug 10, 2017
52 posts
19 upvotes
moonj86 wrote:
Aug 12th, 2017 7:03 pm
Forgot to mention I am in Calgary, I know it is crazy in vancouver and toronto, lol.
Hey give it a shot though. If they aren't selling they might sweeten the pot for you. Might not be in dollars but possibly in upgrades.
Also i don't recommend you have them do the A/c for you. Just have them do the roughin.
Also a good idea to get the 3pc roughin for a bathroom in the basement.
[OP]
Newbie
Nov 24, 2016
68 posts
14 upvotes
Gee wrote:
Aug 12th, 2017 7:05 pm
You can't negotiate price. If you look, there are people lining up trying to buy new builds.

What you can negotiate are the options. Builders usually offer $10,000 for upgrades, ask for $25,000. Make sure you fix the closing costs too. Don't want that to get out of hand.
Thanks
Jr. Member
Oct 23, 2010
110 posts
16 upvotes
Brampton
If you know a real estate agent thatll give you a break on their comission, some builders will allow them to represent you in purchasing. Otherwise the builders agent rep takes it all. It may be a little different Alberta but i was able to use a friend/agent when i bought my 1st home in ontario a couple years back. Otherwise you should be able to negotiate stuff to be included in home price
Deal Fanatic
User avatar
May 12, 2004
8941 posts
3043 upvotes
Ottawa
ablessa wrote:
Aug 12th, 2017 11:40 pm
If you know a real estate agent thatll give you a break on their comission, some builders will allow them to represent you in purchasing. Otherwise the builders agent rep takes it all. It may be a little different Alberta but i was able to use a friend/agent when i bought my 1st home in ontario a couple years back. Otherwise you should be able to negotiate stuff to be included in home price
To add to this. Usually they'll cooperate with an agent only if they call on your behalf and set up an appointment at a sales center. They don't have to be there but they need to have contacted them on your behalf first for the builder to collaborate with an agent.

For us if we've ever seen your face in the office, had an email inquiry or a phone call from you we won't collaborate with your agent.

Edit: it would be like agreeing to a price with a fsbo and then saying "oh hold on the price we both agreed to is actually 2.5% less". That wouldn't fly.
Censorship is telling a man he can't have a steak just because a baby can't chew it.
- Mark Twain
Deal Addict
Dec 5, 2009
4349 posts
2131 upvotes
In GTA, they won't budge on price. But you can negotiate on addons and upgrades. Not sure about Calgary.
Deal Addict
Jul 30, 2003
4968 posts
181 upvotes
Toronto
Can anyone confirm they successfully negotiate addon / upgrades? I don't think that is possible in GTA?

I only hear rumors that if you buy 4+ deals (pool of investors. Realtor bringing in bunch of sales together.) They get a better deal, they can negotiate a bit.
For Sale:
    Canon C100 + Canon 70-200 f2.8 + ...
Looking for: Sony Camera for video (for a good price)
Sr. Member
Nov 30, 2011
646 posts
153 upvotes
GTA
PrinceMS wrote:
Aug 13th, 2017 12:09 pm

I only hear rumors that if you buy 4+ deals (pool of investors. Realtor bringing in bunch of sales together.) They get a better deal, they can negotiate a bit.
Rumours only. And many builders do not participate with oitside Realtors so they don't have to pay commission. You have 10 days after signing the deal to get independent legal advise. In most cases builders won't change THEIR standard contract so that is futile as well. In this market, the builder holds all the cards.
Deal Expert
Aug 2, 2004
23911 posts
2301 upvotes
East Gwillimbury
PrinceMS wrote:
Aug 13th, 2017 12:09 pm
Can anyone confirm they successfully negotiate addon / upgrades? I don't think that is possible in GTA?
I was able to negotiate credit for upgrades and add ons, but in the end, they still get you.

I negotiated all hard wood floors over carpet and got $25,000 credit toward upgrades. When I went to the design centre, I found out the hardwood floors were basic and I needed to upgrade them. The cost of the upgrade was $40,000. They charged me for tiles and concrete for the shower etc. everything was an upgrade, even the handle for the shower door.

The kitchen faucet was a $2,200 upgrade and I found the same faucet on Amazon for $450
Deal Addict
Jul 30, 2003
4968 posts
181 upvotes
Toronto
Gee wrote:
Aug 13th, 2017 12:51 pm
I was able to negotiate credit for upgrades and add ons, but in the end, they still get you.

I negotiated all hard wood floors over carpet and got $25,000 credit toward upgrades. When I went to the design centre, I found out the hardwood floors were basic and I needed to upgrade them. The cost of the upgrade was $40,000. They charged me for tiles and concrete for the shower etc. everything was an upgrade, even the handle for the shower door.

The kitchen faucet was a $2,200 upgrade and I found the same faucet on Amazon for $450
wow that sucks. I know a guy he builds basement, he booked a new house - ask them to not put any finish in. They said they have to legally put things in, he talked to contractors on site and asked to go as light as possible becasue he is going to litreally rip everything apart. He repainted, re did floors, stairs ... everything.
Now it make much more sense why he did that. He did sell it in one day for absurd price compare to all other houses - when he was done.
For Sale:
    Canon C100 + Canon 70-200 f2.8 + ...
Looking for: Sony Camera for video (for a good price)

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