Too many variables are possible in this situation there is IMO no way to answer this question with out you writing a book of all the things that are exactly the same as yours . Every little change costs money with a tract builder . Similar floor plan does not mean exactly the same . So many things go into pricing a new build there is just no way for us to know .

If you signed a contract, then you made a deal. Would you be calling the builder to ask if you could pay more money if market prices in your area were rising?

Additionally, even lots which are adjacent to yours are likely different in some way, so maybe the lower price is a reflection of that. I agree with Patrica, that the variables are numerous and unknown, and not in your favor, if you already signed a contract.

Thanks @Patricia Colwell Consulting @Mrs. S for your comments. To rephrase my statement, the floorplace (sqft and construction layout) is exactly same as mine. I understand that many variables need to be considered while pricing. Incase if builder realized the demand is on lower side and decides to sell exact floorplace and even more lot area than mine on lesser price, can I not ask the builder to reconsider providing incentive towards my costs in anyway. Is there any provision in favorable towards buyer for negotiation because the homes are already on higher infltated prices anyway in current market. If the price drops within few weeks of signing a contract, felt if I could voice my concern in a positive way that builder understands.

In answer to the question you posed in the comment section, of course you can ask for additional incentives. The builder, however, is under no obligation to lower the price reflected in your signed contract or to offer incentives. You can always ask.

Any chance the builder would allow you to switch for a cheaper house/lot?

It will be nicer if he provides such option but yet to table all those before I approach

Are those lots in some way less valuable than yours? Perhaps smaller, corner lots, large easements or something similar? Those could be reasons for price differences.

That said, builders often will adjust prices up and down while a subdivision is being built. Sometimes it's in the form of incentives. Our first house was built by our large national builder. At one point after we purchased and moved in the builder was giving away free basements. At the end of the 300+ houses neighborhood they offered a lot of incentives to sell out the neighborhood. Nothing you can do as prices go up/down in a matter of weeks/days.

Might be smoke and mirrors. How does the total price compare?

May be that the lot costs less now but the price of the house went up?

Then again, the builder may be making a token price concession because interest rates have gone up & future rate increases are guaranteed. His business will feel the repercussions if not already felt.

"After signing the contract"

Those words have major impact on your situation. With that said, no harm asking.

I would recommend asking very kindly, acknowledging that the Builder is under no obligation to give you any additional incentives, but seeing if they would be willing to give you some incentives or credits as a gesture of goodwill.

You could ask the builder why the difference in the prices for the adjacent lots with the same floor plan.

Ask - For your own peace of mind!

There is no harm in asking.

As others said, there is no harm in asking. However, if it were the other way around and adjacent identical houses were selling for higher, what would your response be if the builder asked you "I'm raising prices on the other houses - do you mind paying x% more than what we agreed in the contract"?

Having said that, I would still ask. I can see that the best outcome in you asking is that you get some "free" upgrades - for example, free countertop upgrade, floor upgrade, etc.

Unfortunately you have a contract and so the builder is not obliged to alter the terms anymore than you would.

However I would approach the builder on a friendly basis and ask if there are some concessions that he could add. You might preface this by saying that at this point you are at a disadvantage in terms of resale since other *identical* homes are $5000 and will reflect that when resold - I am assuming OP is correct that they are identical.

The reason why I suggest asking about concessions or upgrades is that the builder would be able to supply you with $5000 or more of upgrades at a relatively low cost to him. Think about what you might want in the home that you didn't get because of the cost and ask whether he could throw that in as a gesture of good. If he is *charging* $5000 for something the actual cost will be far lower and if he is a good business person getting your good will is valuable as well.

You made your deal. Live with it please.

Rising interest rates are resulting in lower real estate prices- some are dropping faster than others. I don't think you have much here to negotiate on- its just market conditions.

You can ask, but most people honor a written contract.

The builder obviously wants to pick up the pace of the project for any number of reasons. It's nothing personal. Perhaps he is feeling the pain of higher interest rates on his land loan, or he wants to get a bunch of houses done before winter, or he's trying to attract buyers who are shying away because mortgage rates are increasing, or... It's like when one walks in to Target and now all clothing is 10% off and last month it wasn't. I agree that it does hurt to ask. He might throw you a free fireplace mantel or something.

The builder obviously wants to pick up the pace of the project for any number of reasons. It's nothing personal. Perhaps he is feeling the pain of higher interest rates on his land loan, or he wants to get a bunch of houses done before winter, or he's trying to attract buyers who are shying away because mortgage rates are increasing, or... It's like when one walks in to Target and now all clothing is 10% off and last month it wasn't. I agree that it does hurt to ask. He might throw you a free fireplace mantel or something.

Suzanne hit the nail on the head. Market conditions dictate the price of everything, especially homes. Higher mortgage rates cause home prices to fall. This is exactly what the Fed is trying to do to cool the overheated housing market.

OP signed a contract. The price is the price.

I would personally not quibble over 5K with the person who is going to be building my house. Less than good form, imo.

Not wise to show a lack of appreciation for the one who is building your house. Nor for the one who is preparing your food.

Why did you choose your lot? Was there something about it that made it appealing?

You are doing a production build. Your builder brought a large tract of land which was subdivided into so many lots. I've subdivided my own properties. First the builder has to buy the lots from me. His buyers don't know how much he has paid me for each individual lot.

I am assuming that he paid more for your lot than the adjacent lots. Why? As I said, no two lots are exactly the same in size or, in a production build, no two lots cost the same.

Go to your town's building department and ask to see the plot plan of the development. Now you can compare. What is the assessment? Is it really apples for apples?

I don't think you can. It's the luck of the draw. You paid what you thought was a fair price. I'm sure with the months passing, your builder wants to offload the remaining lots so he can get his money out of the investment.

We bought a condo in a brand new building in SF six years ago. We paid $X for it and then six months later, the same unit above us sold for about $100K less. It's just economics. The seller will get what the market will bear. If the market is slower, it will sell for less to generate interest. C'est la vie.

Buyers are looking at how much money they have to put down, and how much the month payment is. The $5k price decrease probably reflects an increase in the mortgage rates. The buyer will ultimately be out of pocket the same as you, just giving $5k more to the bank and $5k less to the builder.

A lot depends on what deposit you put down. If you have say $10k in the game, you may be willing to walk over a $5k decrease which may become a $10k decrease before the build is ready.

Not too many financially savvy people putting deposits down now on tract builds. Almost no one predicts higher real estate prices 6-8 months from now.

Of course, at this point you may have $10k in the game and can make your call in 6-8 months.

A smart builder may understand this and be willing to make some concessions now.

Now if you have $25k in the game, well things may be different.

This is a national forum and $5k means very different things in different places.