5 tips for negotiating on a new construction

Are you interested in building a house or buying one that’s under construction? Here are five tips to guide you through the process.

1. Negotiate the product rather than the price. Many builders will refuse to go below their base price. However, they may be willing to install additional fixtures or upgrade certain features. It’s worth finding out if you can get more for your money.

2. Maintain your poker face. You might be emotionally invested in owning your dream home, but treat the negotiation like a business transaction. Hire a realtor who understands your needs and can negotiate with the builder on your behalf.

3. Opt for a home that’s almost done. Since the cost of building materials can vary from one month to the next, it can be difficult for the contractor to provide an exact price. If a house is close to being completely built, you’ll get a more accurate estimate of the total cost.

4. Read the contract carefully before you sign. Don’t be afraid to ask questions, and make sure you don’t overlook the fine print. Ideally, the contract should be more advantageous for you than the builder.

5. Keep mortgage rates in mind. If you can get pre-approved by a lender, you’ll be able to determine if the monthly payments for the new home will be within your budget. This can help you figure out whether you’re better off with a house that’s already been built.

For more personalized advice about buying new construction, consult a real estate agent who’s familiar with the area.