When dealing with new construction home contracts, there are several nuances and potential negotiation points that real estate agents and clients should be aware of.
Negotiable Aspects in New Construction Deals
Price This is often the most flexible term. While some builders are firm, many are open to negotiation, especially if they are looking to move inventory quickly.
Incentives and Concessions These can include closing cost contributions, upgrades, or other financial incentives that make the deal more attractive to buyers.
Earnest Money Sometimes, the amount of earnest money can be negotiated, providing the buyer a bit more flexibility.
Closing Dates and Contingencies Some builders may allow negotiations on closing dates or include contingencies such as the sale of the buyer's current home.
Effective Strategies for Home Buyers
Proactive Negotiation Always ask and push for better terms, even if the likelihood of success seems low.
Builder Contract Expectations Prepare for the reality that builder contracts are often non-negotiable on many fronts.
Use Market Conditions to Your Advantage Leverage current market conditions to negotiate better deals. Builders desperate to sell may be more flexible with negotiations.
Stay Firm on Incomplete Work Avoid closing on homes with pending work. Ensure everything is completed to satisfaction before the final settlement.
Phase Inspections Phase inspections should be completed throughout the construction process.
Navigating new construction contracts can be challenging, but with the right strategies, real estate agents can secure better deals for their clients. Understanding common negotiables, setting clear expectations, and ensuring thorough inspections helps handle these contracts confidently. Sharing insights and experiences prepares agents and clients for the unique aspects of buying new construction homes.
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Jen & the team
