Buying a brand new home is an exciting way to become a homeowner. However, since new construction almost always costs more than a home that has been previously owned and occupied, buyers may be unwilling or unable to afford the price difference. If you are preparing to purchase your next home and have concerns about the cost of newly constructed homes in your area, the following tips may be useful in helping you save serious money on the purchase price of a newly constructed home.
Look for new homes that have been used as builder's models
New home builders often build a model home that can be used to show interested buyers the quality, workmanship, and design that the builder is offering in a particular development. Since these model homes are typically finished with neutral colors and finishes to appeal to a wider range of buyers, it may be possible to purchase it for less money than one in which the finishes are customized to fit the desires of a specific buyer.
Consider doing some of your own work on the home
Busy home builders may be willing to negotiate a lower purchase price if the buyer has the ability and desire to do some of their own work on the home. For instance, buyers who are willing to purchase the paint and do their own interior painting may find the builder willing to accept a lower purchase price for the home. Other possible tasks that could be considered for negotiation potential with a builder might include finishing the basement or doing the landscaping work for the new home, including planting grass or laying sod.
Buyers who plan to try offering some labor on the home in return for a price break will want to check with their lender before doing so to make sure that this type of deal will not negatively affect the home's market value appraisal or underwriting guidelines.
Choose a builder or broker who offers a new home rebate
Another reliable way to get a significant reduction on the cost of a new home is to choose a real estate broker or builder who offers a new home rebate. New home rebates are typically a percentage of the purchase price and can be an excellent way to save money on the purchase.
Most new home rebates have specific rules that must be followed in order for the buyer to successfully qualify for the rebate. To learn more about new home rebates in your area, as well as additional ways to save money on a new home purchase, prospective buyers should discuss the situation with their trusted buyer's agent before making any offer.