parkejo
We live in that area, also. We have built with one major builder at one time (M/I Showcase). I have also wondered if there is flexibility with their numbers. I think if ever there was a market to try it it would be now. I think they they are all willing to negotiate somewhat. There are ways around many things. For instance if you don't come with a realtor be sure to ask for the 4% discount. We were considering another builder a couple of years ago. I was surprised at how they did throw around some discounted numbers. I say go for it. I don't see you have anything to lose.

We haven't got a realtor involved yet because we are hoping for more of a discount. The builder we are thinking of choosing just came in to the market to replace another builder that went belly up or wasn't doing so good in the market. The first builder trimmed their markets and eliminated Columbus so this 2nd builder is picking up their slack. We are hoping that since people aren't familiar with the new builder, they might be hungrier for a sale. We have heard and know of people that have built the 2nd builder's homes in the city where we used to live.

Do not pay sticker! No reason too, they definitely are all doing incentives and those prices are just as negotiable (more so maybe) as an existing house. I used a realtor mainly because I don't consider myself a strong negotiator. I may have been able to get the same deal but I don't think I would have gotten a better one without him.

Rocketdog,

How much off the "sticker" did you pay? Looking at the sale prices in the neighborhood on the floorplan, it varies largely as much as 100K. The base price is 330K and some have paid as little as 350K including about 40K worth of upgrades. I talked to the realtor that is going to be selling our house, we are listing it at the end of March and he said he would cut his commission if he represents the buying of the new house and the selling of our house. I am just worried we will lose leverance if we bring him in the deal and they have to pay his commission.

I would get a number in writing and then use that as your springboard for your offer. I think offering a 12-15% discounted offer would be a place to start. You have to figure that at least that much is built in for profits. I would think 20% would be a minimum for that.
Just know if you bring a realtor that you will definitely not get as big a drop. Their commission is a big part of the markup. I think you would come out cheaper to have a lawyer write an offer and submit it in contractual language.
comfortdog

I can't say about things around there, but builders around here are making deals on already built homes. The homes that are being contracted to built have had their prices already adjusted. But to get people in, they offer lots of free upgrades here. If the home hasn't been built yet, it's not as big of a money drain for them.

Skip the realtor. A realtor will ONLY cost you more money when building. The home builder has to pay your realtor, at least in my area that's how its done. And, IMO you don't need a realtor when working with a reputable builder

I disagree about not using a Realtor when buying new construction. We have built twice and used a Realtor both times and in both instances the Realtors were INVALUABLE for their advocacy and negotiating skills. And yes, both builders were highly reputable.

The sales agents in model homes (often they *are Realtors) are working for the builder, why shouldn't the buyers have a Realtor working for them?

We made an offer 1 year ago for approx 12% off the base price that was accepted. Made us wonder if we could have went lower...

But then sometimes it's best to consider that "you generally get what you pay for". If your criteria is strictly price, you could end up with a low-ball quality house.

This is a little OT from the OP question but some things to consider nonetheless-- I didn't want to proceed without a Realtor for our side-- But in my case, it wasn't all about price-

I am interested in a new construction home. The builder usually only builds custom homes but had an opportunity to develop a small subdivision of about 28 homes. I asked our realtor about them. He didn't know this particular builder but said there was some risk in this market (already happened with another builder) that the builder could go belly-up in the middle, leaving the development half finished or that they could run low on funds and start cheapening up the materials during the building process. He heard of another case in town (again, not this builder) where people lost their earnest money and their houses were left unfinished. The funds were not put into escrow but used to begin construction but buyers didn't know that going in.

I've been (unoffically, usually online) looking for the right home for us for 2 years. When I walked into this model home I fell in love. The price was within our range but the home's look/feel/features were so much above and beyond what I had seen in this price range, so I was skeptical. I wanted the Realtor, who looks at homes day in and day out, to look-- to check the build quality, the surrounding neighborhood (older and not as upscale)to dig up information, and also his opinion on the pricing.

Talking price is always uncomfortable for me. I don't want to insult anyone or come across as a cheapskate but I also don't want to overpay so I did ask my Realtor if there was room to move on the price, especially in this market and since I am clueless in the new construction process. He told us there might be a little wiggle room but that he and everyone else that goes into this home can't believe they aren't asking more. I believe they have priced it right to start with (compared to everything else I've seen) and although who wouldn't want to pay less, I think the price is fair. He was also able to check the sales in the developement. He confirmed what the builder told us which was all 5 spec homes they have built so far have sold except one (and builder told us they have a possible contract coming on it) and they have done about 4 pre-sales. The model has only been open for about 6 weeks. Their agent told ours that they got 3 new contracts last weekend. Some builders may be hurting and are giving away the farm to sell, but it is not the case for our builder.

Another advantage this builder offers is free consulting with his wife, who is an Interior Designer on all your materials as well as paint colors and modifications (I just paid 75.00 per hour for this in our current home to pick new carpet & paint and other flooring for resale) Also, since they usually build custom, they allow for (and help design) modifications to the plan --we have a few we are already considering-- One is to turn a full sized closet in the laundry into a mudroom style bench with pull out drawers below and hooks for coats & keys and cubbies for gloves/hats etc. Most new construction homes wouldn't change a thing for us, beyond letting us pick the standard carpet etc...

The Realtor also negotiated a 6 month contingency to allow us some time to sell our home, while this one is being constructed, and during that time, they can't sell the home from under us and I still get to pick all the colors etc. (I will have to prepay for those modifications upfront which I may not do if my home hasn't sold by that time. I still love the home as is~)

I honestly don't have a clue how my Realtor is being compensated by the builder. Maybe they pad the price by a few K to cover it. But he has already handled many details in the contracts that I would not have thought of and I feel I have someone that knows what they are doing lookng out for my best interests in the transaction. We get along wonderfully (at least so far) with this builder but this is the biggest ticket item we will EVER buy, not having a a rep on our side for me would be like going to trial with out a Lawyer.