Negotiating With Builders of New Homes in Northern Virginia
We have all done it, driving around Northern Va. on a weekend afternoon and spotted the flags waiving in the air distracting us from our destination. The loved one in the seat directly next to you points and says, "Let's go take a look inside." There it is just around the corner a spanking brand new home that is so nice it is obvious no one actually lives there. As you walk into the front door the fresh scent of cookies or the aroma therapy candle puts all your other senses at ease. The sales representative is on the phone and appears very busy but kindly acknowledges your presence. They point towards the stairs and tell you to go ahead and take a look inside.
The home is the most beautifully decorated home you have seen with all the upgrades and more. Every single light is on and the shades and curtains pulled back. The soft music in the background you barely notice but it puts some energy in your step. You admire the perfect décor as you take mental notes and begin to place your own furniture in each room. The bathrooms, kitchen, and closets are perfectly organized exactly they way you imagined your own. You stroll down to the basement and find candy for the eyes and soul, the most cozy entertainment room you have ever experienced. The wet bar, pool table, exercise room, and that big screen plasma or projection TV you always wanted in your own home.
With a bit of excitement in your voice you walk back to the main level as the Sales Rep greets you with the biggest smile. They begin to tell you how busy and crazy things have been lately. The sales rep explains the special prices and incentives they are currently having that weekend and begins to ask you non threatening questions. You politely answer all the questions they ask since they have been so nice to you. This is when most buyers give away important confidential information.
You have been had, bamboozled, just plain hoodwinked.
But at least you feel good about it.
I want to start by saying the sales representative works for the builder, their salary,
commission and bonuses get paid by the builder. This is the number one reason why you should always visit a model home with a
knowledgeable REALTOR by your side and who you have signed a buyer's agreement with. (Plug for my expert services) The new builder will not lower the price of the home because a buyer does not have an agent. If they say they will lower the price it is an amount they will lower whether a buyer has an agent or not.
If you do or have gone into a builders model and you have registered without an agent not all is lost. Contact an agent and give them the scoop and have that agent call the sales rep to see if you can now get representation.
Are New Builders Really That Busy?
The answer to this is yes and no, let me tell you why. There are some communities that do sell quickly for many reasons including price and/or location. The thing is the Sales Rep is trained to make prospective new home buyers feel a sense of urgency. The buyers who feel like they are going to loose a particular lot or price are more likely to sign the dotted line faster. The community may not be selling fast at all and the odds of this are good given the market in Fairfax County, Prince William County and most of Northern VA.
A Model Home
The model homes for most of the new builders in Fairfax, Prince William and all of Northern Va. have all the upgrades possible. Many of new models even have upgrades that a home buyer can not even purchase from the builder. We all have also seen the impeccable décor of these homes that are done by professional decorators. This is done to make the buyers subconsciously think the home they purchase will look like this one. These are also the reasons people are more willing to spend more on a new home.
Negotiating
There are few new home builders including Toll Brothers , Ryan Homes, Stanley Martin, Pulte, NV Homes, Richmond American, Beazer, Lennar, Drees, Centex, or Brookfield that will negotiate. This is the case if they are selling slower then expected and is true for much of Northern Virginia. A buyer can only negotiate if they are willing to walk away from the deal and not be tied emotionally to the outcome. Here is an article that will help prospective buyers with this called The First Rule of Negotiating Home Sweet Home.
New home buyers in Fairfax County, Prince William County and Northern Va can negotiate on two different fronts. The first is the most obvious which is the base price of the new home. Most builders in today's market will negotiate; the sales rep just will not tell you that. The other is negotiating free upgrades that are not included in the base price. This will only work if the home has not yet been built. The home builders will sometimes have a home that is or almost complete and in this case the upgrades have been picked. The key is to make sure the sales rep knows you are willing to walk away because of other available new homes or resale's in the area.
The Builders Contract
The home builders contract is mostly in favor of the builder who wrote the contract. There are a lot of things in this contract a prospective purchaser should be aware of before signing. To give an example, most new builder contracts have a long window of time to have the home completed by. I have seen them as long as two years guaranteed to have the home built. Usually the settlement date that is in the contract to purchase is an ESTAMATED date. Of course it is in the best interest of the builder to make the date because that is when they get paid. This is why it is good to have an agent that represents you there to explain anything that you do not understand.
New homes are a pleasure to own because of the style and upgrades a buyer gets to pick and the fact that it has never been occupied. There are also drawbacks to living in a new community especially if it has not been completed. This is why it is good to do the necessary research before buying and have a new home builder REALTOR representing your interest.
