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.