What Can You Negotiate For?
Although the prices of Newbuild Homes are fairly set, prospective buyers do still have some tools at their disposal. Buyers can negotiate on specific, tangible things, in addition to costs that are separate from the price of the property itself. For example, there can be room to negotiate for tweaks to the property itself: more finishes, certain sorts of upgrades. It might be possible to include something like the price of insurance, as well.
But even though these options for negotiation certainly have precedent, it’s important to note that you shouldn’t count on them with any degree of certainty. For the time being, this is especially true in the Kitchener-Waterloo, Cambridge, and Guelph markets.
Markets are driven by supply and demand. And the reality in Kitchener-Waterloo, Cambridge, and Guelph is that there is high demand (particularly for homes that hover around the overall average price for any given style of home), with a level of supply that provides a variety of options, but not an abundance (from a buyer’s perspective). There may not be price negotiations, but if multiple buyers are interested in a particular Newbuild Home, the flexibility to ask for additional perks is diminished, as plenty will not ask for any extras.
The Bright Side of No Negotiations
There is a bright side for buyers, though. Yes, they may not be able to negotiate for a lower price, but the price cannot go up, either. Homes selling for over the initial asking price – and sometimes significantly over asking price – happens frequently in popular neighbourhoods. And as noted earlier, many postings can lead to bidding wars, which lead to buyers having to make a higher offer than they initially had hoped.
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With a Newbuild Home, you know what price you’ll be paying from the outset, and you won’t need to worry about a bidding war. That said, there’s a greater element of ‘first come, first served’ in Newbuild Homes. Late-comers on other sorts of property can edge out competition with higher offers, but with a Newbuild Home, you might miss out if you don’t act quickly.
Another aspect worth noting is that the builders themselves might decide to decrease the price if the demand turns out to be less than they’d anticipated. Newbuild Homes often come in clusters – if you take a drive through South / Southwest Kitchener, you’ll be able to spot quite a few – and builders set multiple prices based on expected demand. But to reiterate: demand is consistently high in Kitchener-Waterloo, so while the possibility of builders lowering their on prices is there, it’s not something you should count on.
Buying Your Newbuild
When you find the Newbuild you’d like to buy, you’ll typically be in communication with a real estate agent representing the building company. Having a real estate agent representing your interests is quite important to ensure that not only are your needs met, but also that there aren’t any hidden surprises. From local knowledge to research into the various builders, a knowledgeable realtor will always be an asset when it comes to buying a Newbuild Home.
We outline our commitment to buyers in our “How We Represent Buyers” article if you’d like to know more. Two quick things, though: having a real estate agent represent you as a buyer rarely costs you anything, as fees are covered by the seller through co-operating commission. We work round-the-clock to find options for you based on your needs (again, speed is an important factor in purchasing a Newbuild Home).
Please feel free to contact us – we offer free consultations, with no strings attached, to everyone who signs up to our website!
Newbuild Homes have many perks, and as with anything in real estate, the buying process has its own unique quirks. These quirks don’t make it a more (or less) difficult buying experience than purchasing older homes, though – just a different one. And buyers who stay within their price range have the benefit of knowing the price upfront, and not potentially having to outbid other potential buyers.
Stepping into a Newbuild Home once it’s fully yours is a great experience. Everything is brand new, from the flooring to the appliances, and the home is a blank slate for you to start the next chapter of your life. From increased options for customization to the ability to have the home of your dreams in a growing neighbourhood, Newbuild Homes can really be a luxurious experience.
Written by Will Kummer