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New Builder Homes: Room for Negotiation?

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  • Feb 26th, 2010 3:55 pm
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[OP]
Sr. Member
User avatar
Nov 1, 2006
548 posts
1 upvote

New Builder Homes: Room for Negotiation?

Hi team,

I found a duplex that I want to buy, going to put down a cheque to hold the lot in a couple of days. My question is, is there room to negotiate for new builder homes? The asking price is $302k, includes legal fees and GST. It should be done building in Sept. I am in Edmonton, if that helps.

Thanks!
5 replies
Deal Expert
User avatar
Feb 9, 2003
17795 posts
2434 upvotes
Langley
Nope. You have nothing to gain by trying to negotiate a lower price.
Sr. Member
May 28, 2004
760 posts
88 upvotes
Milton
I've bought 2 homes from new home builders, and both times negotiated. Everyone dealing with the most recent one said it was impossible to get a deal.

First house was a townhouse and got them to drop the price 2K and throw in the fireplace.

Second house was a big single and got them to throw in 15K in free upgrades.

Most times I find you will do better by asking for more upgrades then ask for straight money off the price. We ended up spending 30K in upgrades (so 15K additional out of pocket) so it made sense. If you only intended to spend 2K in upgrades, its less attractive. I think on the townhouse they offered 1 free major upgrade and we asked for 3 (knowing full well we would be rejected, but likely to get 2)

Also, in both occasions there have been staggered deposits, 5K on sign, 10K 30 days, 10K 60 days etc. Both times I dropped the full deposit on signage to show the builder I was serious and they would get to hold my money right away.
Sr. Member
Jan 14, 2007
815 posts
12 upvotes
Edmonton
generally in Edmonton the big builders Homes by Avi, Carrington etc... you can't really negotiate with them.

Smaller home builders you can get away with some negotiation.

It really depends on how motivated the builder is to sell. If you're buying the last unit they have for sale often you can get some price reduction (if the price hasn't already been reduced).

Look for some promotional credits.. ie. some builders give newlyweds a reduction etc...
Member
Feb 26, 2009
225 posts
18 upvotes
It also depends how many more units in the development the builder has to sell.

I've worked for a number of builders, and when it got towards the end of inventory, there sometimes seemed to be a little more flexibility there. Your mileage may vary!

Hey, give it a shot! You have nothing to lose. If they say no, ask for other extras. They sometimes seem to be more willing to throw in fireplaces, upgraded ceramics, appliances etc than accepting less than what they're asking for.
Newbie
May 9, 2018
5 posts
4 upvotes
Hello

do you know if there is any wiggle room in price when you go pick your upgrades?
please let me know as I am pushing my budget way to hard for the basic things we need from the design center and going way over :(


Devious wrote:
Feb 26th, 2010 8:14 am
I've bought 2 homes from new home builders, and both times negotiated. Everyone dealing with the most recent one said it was impossible to get a deal.

First house was a townhouse and got them to drop the price 2K and throw in the fireplace.

Second house was a big single and got them to throw in 15K in free upgrades.

Most times I find you will do better by asking for more upgrades then ask for straight money off the price. We ended up spending 30K in upgrades (so 15K additional out of pocket) so it made sense. If you only intended to spend 2K in upgrades, its less attractive. I think on the townhouse they offered 1 free major upgrade and we asked for 3 (knowing full well we would be rejected, but likely to get 2)

Also, in both occasions there have been staggered deposits, 5K on sign, 10K 30 days, 10K 60 days etc. Both times I dropped the full deposit on signage to show the builder I was serious and they would get to hold my money right away.

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