Can I get a deal?

Real estate is an interesting industry.  In most markets the seller lists their home at a price above what they really need to get.  They assume that the buyer will make an offer below that and they will settle on a number close to the one they wanted in the first place.  This back and forth process is not only commonplace but actually expected in most cases.  The exception to that is in the new construction home buying world.  Builders are almost retail stores.  Imagine walking to the checkout stand at Home Depot and telling the cashier that you would like to offer $479.00 for the table saw that sells for $649.00.  There are several reasons for home builders to take this hard line on discounts but the main reasons are word of mouth and appraisals.  Think about it.  If a home buyer got a “deal” from a builder for some reason and the word got out, every buyer that paid retail in that community would be enraged and future buyers would want the same deal.  The second reason and probably the more important of the two is the appraisal values of the homes going forward.  OK, here is how that is a problem. If the buyer on lot 15 negotiated a $10,000.00 discount on the 2,200 square foot Hampton plan, then the appraisal on future sales in that community will reflect the lower pricing which will have an impact on the future appraisals.  If appraisals come in low, banks will not loan to the higher amounts.  If banks won’t loan, builders don’t sell.  You get the point.
Now that I have burst your bubble on the potential of getting a better deal than full retail, there are some negotiating strategies that can save you  money without asking the home builder to lower their price.  Any Realtor that is familiar with new construction, as I am can, explain these strategies to you.