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New Construction Negtiations

Your Goals

If it's so easy, and even expected, to negotiate price on an existing home for sale, why shouldn't you do the same on new constructions? Even in cases where the builder is reluctant to lower the price, you can usually still negotiate various aspects of the purchase. This guide will go over new construction negotiations, how they should be conducted, what you can negotiate on and why they are always worth a try.

Always Attempt Negotiation

Like with many other big projects or purchases, you are likely shopping for the best deal. While a lot of it depends on the current local market and the individual policies of a contractor, you have little to lose by trying to negotiate a lower new construction home price. While many buyers don't want to go through the trouble or find it extremely nerve-racking to negotiate, you will never know how good a deal you can get if you don't ask.

You should be aware that some builders are very adamant about not reducing the price, and often with good reason. Even if a lot of their preexisting homes are sitting empty and it's a saturated market, builders need to charge full price to protect their business's profits. They also might be concerned about former customers being upset that a house was sold to you for a lower price and that giving you a discount might affect the price point of later sales. If your builder simply won't budge, you have the option of going elsewhere or consider negotiating on other points, which will be outlined later in this article.

Research The Builder

In general, it's always best to check the reputation and financial health of each builder you are considering. Doing your research ahead of time can also give you a good idea of how open a developer might be to negotiation or what they may or may not budge on. For example, if a builder has a lot of existing new homes that are currently empty, they might be more interested in getting your business and thus willing to give you a better deal.

Even when building a new home, it's still often a good idea to hire a real estate agent. They can negotiate on your behalf and be sure to get you exactly what you want. They can also help prevent legal issues as well as explain complicated real estate and warranty information to you in simple terms.

Negotiating Points

Even if your builder is unwilling to budge on the regular price, you should be able to negotiate and pick and choose materials and features you want or don't want to bring the price down. Here are some common negotiating points you ought to consider:


If you don't want certain fixtures or plan to supply them later, such as lighting, or you would prefer a cheaper brand, builders can usually take that off the price.


For example, if your builder wants to charge you a certain amount for flooring, you can take measurements and contact a local flooring store for a quote. After the builder has completed the home, you can have the flooring put in later for a better cost.


You can usually do landscaping yourself or hire a landscaper to do it later for money off your initial construction costs.

Miscellaneous Costs:

Even if builders refuse to negotiate on price, they may be willing to pay things like closing costs at no additional fees to give you a better deal.

Benefits Of Negotiating

Asking for a lower price can simply net you a lot more house for a lot less money. You can also cut out upgrades and features you do not want or need, which is a win-win for you because you'll end up with exactly what you want for less money. A reduced cost of construction can fall within the range of your loan, which means less out-of-pocket expenses and financial burdens for you.

If the builder you are currently in contact with isn't particularly impressing you, feel free to shop elsewhere and get quotes from other builders. If you vastly prefer a location or subdivision where a developer is currently building, you may not have much choice.

It never hurts to try and negotiate on the price of a new build, and you should always attempt it. Doing your research ahead of time will help you get an idea of each developer's policies and current inventory. Even if they aren't willing to negotiate much, you can still almost always compromise on materials and extra features. See what options you have to reduce the cost of a new build and save yourself cash.

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