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[atb3183]

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[ShanetheMortgageMan]

They've already reduced the prices by $50k, I doubt they'd reduce them by another $80k and then pay your closing costs on top of that... I'd think best case is they'd sell the lowest priced model for $330-340k and pay for all of your closing costs.  You should check out what other homes similar to the ones from the builder have sold for.  However you have nothing to lose by making an offer at the price you want to buy it for.

[Anonymous]

Where are you located?  The new developments here have really had it tuff.  They have dropped homes that were built for 350,000 and they are still not selling when knocked down to 240,000.

Here's one example.......I made an offer on a new construction home that was built for 320,000.  It had been on the market since Dec. 2006.  When I found it this year it was listed at 214,500. 

Here's the kicker..........I wanted them to cover closing cost, put on  a deck and sheetrock the unfinished basement.

THEY AGREED!!  Builders in my area anyway are desperate and they need to unload their inventory.  They are easier to work with when trying to get "xtra's".  Hope that helps.

P.S. - I worked for two large builders............I'm in a different field now thanks to the market.

[atb3183]

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[Anonymous]

atb-

Thanks so much for revealing your location! We're looking at homes in The Highlands in Macon, GA. The building is actually getting out of the constructino business altogether and has dropped the prices 20K on the remaining homes. We want them to pay closing costs as well, but our realtor said that would be impossible since they already dropped so far.. I disagree -- if they want the homes sold, they'll do what it takes, right?? I'm glad to know from other's experience that builders DO drop prices so drastically.

The builder of the community you're looking in wouldn't be Sivica Homes, would it?

[atb3183]

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[Anonymous]

It would be beneficial for you to find out how many homes this particular builder has on the market, and how long the other homes have been out there.  If they are selling other homes quickly, they might not be in a huge bind, and you won't have much leverage.  But if all their inventory is stagnant, you will have some leverage.

What I would do is try to figure out how much it cost them to build the home. You can usually find this out through your county office, as they require permits to build.  Next, I would attach a cost of capital  (interest rate) used to finance the build.  You will have to see what rates were at the time they began building and use that rate.  I'm not sure if they pay property taxes where you live for homes that haven't sold.  But it would be nice to check.  Basically, you need to figure out all of their costs that they are paying per month currently while the house is just sitting on the market.

If this is a sizeable number, which it most likely will be, you can use that knowledge in your negotiation.  You can say something like, "you're going to be at my price anyway in x months due to the costs you are paying every month, so why don't we just meet at my price now and save everyone the hassle", etc.  But the key is finding out how much it is costing them every single month that that house sits vacant!

Good luck.

[atb3183]

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[creditwatcher]

I say go for it!  If turning you down on your off is the worst thing that can happen, sounds like a pretty low risk to me.  Asking and not receiving is better than never knowing the answer.  Or something like that