Are you thinking of buying a model home from a builder? If so then you are in luck. This post gets to highlight what you can expect when doing so and most importantly what kind of discount you should ask for.
So you’ve decided to purchase a new home construction in your neighbourhood, well, you’ve made a perfect decision. There are several benefits associated with buying a model home from a builder. For starters, you get to be involved in the process of deciding what makes the cut in your home. In other words, you choose what you’ll have in your home. Whether it’s a kitchen appliance, tiles on the bathroom floors or even wardrobes in your bedroom, you’ll get to handpick what remains and what doesn’t when building your home.
While there are several benefits associated with buying a new home construction such as selecting a personal design of your home none of them beats total cost. When making a purchase of a new construction home, you have the opportunity to greatly reduce cost by asking for a number of discounts.
Sadly however not many people know about these discounts. It is with this that we’ve opted to share with you this post. Below we’ve shared with you areas you can take advantage of and seek discounts when buying a model home. These areas are;
- Home Price
- Model Home Furnishings
- New Home Construction Upgrades
- Incentives & Credits
- Use Your Own Builder, Contractor or Lender
Home Price
Top on the list of areas you should look into getting discounts from is the total home price. You can ask a builder when making a new home construction purchase to give you a discount on the home’s price. A common mistake many make when buying a model home from a builder is assuming that the price of the home is firm. With just about all new home constructions, the price is always negotiable.
To get the best discount however when buying a new home construction, make sure you go for the last model home. Close-out sales, in general, have the best price. By best price we mean, the lowest price when compared to other units. Even better you are more likely to get a good discount if you happen to purchase the last new home construction.
Model Home Furnishings
New model homes usually have furnishings that in most cases tend to remain after one has made a purchase of a new home. From artwork, beddings and even furniture, if it’s present during the showing chances are that it’ll remain in your home. What many don’t know however when it comes to these model home furnishings is that you can negotiate with a builder to give you a better price or discount. When negotiating a discount for these furnishings, tell the builder that you’ll take them without a warranty. This small piece of detail when included in your contract gives you a great discount on when buying a new home construction.
It is important that you remain calm and most importantly don’t fall for lies builders always tell when it comes to matters home furnishings. A common lie many of them tell when it comes to model home furnishings is that the price is firm. As the total value of the home, this is not true. The price is very negotiable.
New Home Construction Upgrades
A big positive associated with new home construction is the ability to opt for a number of upgrades. While this is a plus for anyone looking to buy a model home, upgrades, whether high-end floors or finishes, can be very expensive. This can be a big negative if you are looking at saving when making a purchase of your model home. So how can you go about having upgrades while still not spending too much? Well, by seeking discounts on the upgrades.
Again, builders will give you a price for each and every upgrade but that doesn’t necessarily mean the prices are firm. One way you can go about seeking upgrade discounts is pricing upgrades from a separate contractor before committing. If the price you get from your contract is low compared to what the builder in the new home construction told you then use it as a bargaining chip. Do this for just about every upgrade to get a better discount on them.
Incentives & Credits
You should always ask a builder about incentives and credits if you are really looking at saving a few dollars when making a model home purchase or simply want a discount. Why is this so? Well, builders, in general, tend to use incentives and credits to either attract buyers to new home constructions or encourage different services.
While these are beneficial to the person building the home, you can also make them work in your favour if you are looking at discounts when taking up new home construction. All you have to do is simply ask your builder about these two. If available utilize them to the fullest to save yourself hundreds or even thousands of dollars.
Use Your Own Builder, Contractor or Lender
Another discount you can ask for when handling a new home construction centres on the contractor and lender you use. Chances are the builder who’ll sell you a model home uses his or her preferred contractor or lender regardless of whether they are expensive or not. As such, you can always ask to see if you can use your own contractor, lender, framers or roofers.
If this is possible go for services who’ll offer you great service while at the same time be reasonably priced. This also goes for lenders. Try and go for a lender who has a lower interest rate. What all these do is basically increase chances of you getting a great discount on your new home construction purchase.
Need advice on how best to save when making a purchase of your new home? Get in touch with New-Life Builders. We do have a team of experts ready to assist you with great advice on how best to save on your next home purchase. You can contact New-Life Builders by dialling (301) 904-0100.
Check out our blog post about:
What should I include in a contract with my home improvement contractor?