Belt Auction

Is bidding on a newly constructed home the same as bidding on an older house?

I am just researching newly constructed homes, Ryan Homes to be exact, they all seem to come with a set price tag. In today's market, no one actually pays the full price do they?

Public Comments

1. In this housing market if you pay full price you are a sucker. I would come in way under asking price. Worse case they turn down the offer outright. Best case they counter a reduced price.
2. The owner of a newly constructed house is going to be more aware of the money spent to buy the lot and construct the house and less willing to accept a lower offer.
3. Check the comps in the area and offer according to them.
4. It is the same process, more than likely will take slightly less than asking price. Price is probably less flexible than a homeowner selling an older home.
5. I don't know where you are looking, but in Minneapolis new construction homes are decreasing in value due to lack of buyers. Some homes have been sitting vacant for several years now and it's a drain on the builders wallet. While I am a Realtor, and do advocate for you to make your best offer, keep in mind that when you offer a very low price, that becomes the value of the home your are purchasing. Plus, you may decrease the value of the homes in that neighborhood. So do your homework on market values in the area's you would like to live. I hope you are using a professional that is knowledgeable in your market, do no make the mistake of thinking you can negotiate on your own and get the deal of a lifetime. It could very well backfire. You want someone who can and will protect your rights.
6. The builder would like you to think that the price is the price but I would approach it the same as an existing home. If you are unclear what to do use a real estate agent, other wise submit an offer and see what happens.
7. Builders are much less flexible than individual owners. A large builder like Ryan builds in many places and do not NEED to sell you this house. They can (and will) wait for something close to their list price. If homes have been sitting in that subdivision, they might lower their prices, but most likely on everything or give a discount on upgrades, not really reduce the price. I know I risk upsetting a lot of people, but Ryan Homes is pretty famous for using junky products in their homes. They aren't terribly good builders. You will be redoing many things in the first five years or paying a boatload to have things upgraded. Ryan is definitely a bargain builder, but for the 'low' price of their homes, you really don't get much. good luck!