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Home»Real Estate»How to Negotiate New Home Price with Builders
Real Estate

How to Negotiate New Home Price with Builders

June 29, 2025No Comments3 Mins Read
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How to Negotiate a New Construction Home Price

Looking to buy a brand-new home but it’s just out of budget? Negotiating with builders can help you get a good deal on your dream home. Whether you’re eyeing a new-build in Rock Hill, NC or Palm Springs, CA, here’s everything you need to know about negotiating a new home price.

Key Takeaways

  • New construction homes have room for negotiation on incentives rather than base price.
  • Working with a real estate agent experienced in new construction is advantageous.
  • You have more leverage when the home is already built or the builder needs to close quickly.

What is a New Construction Home?

A new construction home is a brand-new build that has never been lived in, typically sold by builders or developers. These homes can include custom-builds, move-in-ready spec homes, and homes in new residential developments.

Pros of a New Construction Home

  • Modern features like smart home technology and energy-efficient systems.
  • Lower maintenance and repairs due to everything being brand-new.
  • Customizable options for design elements.

Cons of a New Construction Home

  • Higher upfront costs compared to resale homes.
  • Possible move-in delays if the home is still under construction.

Can You Negotiate with a New Construction Home?

Builders may not lower the base price, but they often offer incentives like upgrades, closing cost assistance, and flexible move-in dates. Knowing how to negotiate these terms can help you secure a good deal.

7 Ways to Negotiate the Price of a New Construction Home

1. Work with a Real Estate Agent

Choose an agent with experience in new construction to advocate for you and secure the best deal.

2. Research the Home

Look at recent sales of comparable new construction homes, pricing per square foot, and builder reputation to understand the listing price.

3. Understand the Local Market

Knowledge of the local market can help justify your negotiations with the builder.

4. Research Builders Prior to Negotiations

Gather information on quotes and negotiation terms from local builders before making a decision.

5. Time Your Offer

Offering during slower seasons or when the builder has unsold homes can give you an advantage in negotiations.

6. Negotiate on Already Built Homes

Builders may be more willing to negotiate on already built homes to avoid carrying costs.

7. Get It All in Writing

Ensure all negotiated perks are documented in your contract to avoid misunderstandings.

Couple signing contract

FAQs about Negotiating New Construction Home Prices

How Much Should You Negotiate on a New Construction Home?

Focus on negotiating other perks like updates, closing cost assistance, or warranties. Working with an experienced agent can help with price negotiations.

Can You Negotiate on Spec Homes?

Yes, negotiation is possible on both spec and move-in-ready homes, with more success on the latter.

How Do I Know I’m Getting a Good Deal with a New Construction Home?

Working with an agent and understanding the local market can ensure you’re getting a good deal.

Builders Home Negotiate price
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