Seattle

[BuyOrBuild]

Hello All. I am looking in to a new build and am wondering if I can get some information on things that should be part of the offer. I understand most developers don't want to reduce their price and instead throw in upgrades etc. Since that information will not be available,

1) How do one come up with an offer? What do you ask for in the offer if it is a pre-sale or in the build process? What percentage of the list price can you usually ask for these concessions?

2) What do you ask for if the house is completed and there is nothing to change? If some of the built out houses are on the market for 4-6 months (probably listed when the build started) and the builder did not drop the price, what can you look for?

3) Do builders allow your own inspectors to inspect duringand after the build process? Lot of things could potentially be covered up once drywalls are up, so I am thinking if you can get checkpoint inspections and if that should be written in to the offer.

I have tried to read through the forum and most advise appears to be for resales and very limited info for new builds. Appreciate your suggestions and hints.

[MoniqueL]

Hi BuyorBuild,

These are great questions!

1) and 2) I would first make sure the homes that sold in the last 2 months are within the price range of the asking price.  If there's a difference indicating they have sold for less, I would follow that trend.  Also, ask for all of your closing costs, even if it's a pre-sale.  If it is already built but not landscaped in the back yard (this is an upgrade in most cases), or if there is no washer and dryer, ask for that as well.  I had clients ask for all of the window screens (for some reason, this is considered an upgrade!) as well as converting the electric oven/range to gas.  Before submitting your offer, see if there are other competing offers on the table or coming in.  If not, try a lower price.  Most builders will simply counter your offer.  If there are no other offers coming in, the worst they can say is no!

3)  All of my buyers I've had in the last 7 years have had inspections after the home is completed and before closing.  We've caught standing water under the house, improperly installed flashing on the roof, damaged gutters, debris in the crawl space (wood debris can invite wood destroying organisms), and mysterious flushing toilets.  I have never had a buyer request an inspector come during the building process (that would be several visits and would need to be coordinated with the electrical, plumbing, drywall, foundation contractors, and the builder) so I am so sorry for not having an answer on that one.  Maybe someone else will post their experience?  And yes, absolutely have that written in the offer up front as well as a final walk through (I've never had a builder NOT include that in their contract, usually they want to fix any issues before closing).  Also:  ask what the warranty is.  There should be at LEAST a 1 year foundation to shingle warranty.

I hope this helps?  Good luck on your home purchase!