5 Items To Negotiate With New Home Builders

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Building a home is a huge investment. Sometimes home builders offer specials or incentives for marketing purposes, like free air conditioning if you buy a home in July. However, there are better ways to save money with a new home builder. Here's what you need to know.


Fair warning: the price of the home is not usually negotiable. Don't be afraid to ask your real estate agent to write up an offer at a lower price. You can always try.

Closing Costs

Closing costs and fees associated with purchasing a property can add up quickly. It's not uncommon to ask the seller, in this case, the builder, to pay the closing costs. For you, it is another out-of-pocket expense. For a builder, however, it's a write-off. In some cases, the builder may be willing to pay for all or some of the closing costs.


Depending on the builder, part of the country, and the price point you are buying at, you may or may not have a landscaping package included in the price of your home. If you don't, negotiate for one. Most homeowner associations require that landscaping be completed within a few months of moving in, which can be expensive. Instead, request that the builder throw one in for free if you buy the home and cross that off your to-do list.

Financing Terms

Many national home builders have their own in-house finance companies. With mortgage interest rates rising fast, negotiating the terms of a home loan through one of their in-house teams may be worth your while. Do not be afraid to negotiate both the interest rate and the length of the loan. For example, if your numbers work for a 25-year loan, but the banks aren't offering that product, ask the home builder. Likewise, if you can't make the interest rate work for your purchase, negotiate a lower one.


Upgrades and customizations are also negotiable items with new home builders. You may be able to get certain upgrades, like wood floors, a waterfall kitchen countertop, or a jetted tub in the primary bath. Don't ask for each item, one at a time, however. Have your real estate agent write an addendum when you submit your offer. List out the item or items you would like added to the price of the home at no additional charge.

While negotiating the above items may seem awkward or maybe even rude, it isn't. You need to remember that building a new home is a business transaction. Business people negotiate all the time. It's part of what they do. With a little know-how and a good real estate agent, you can work with a home builder to create the house of your dreams.  

For more information about custom home building, contact a local company.