Real Estate Busters! How to Save $$$ on New Construction Purchases

Negotiating Strategy and Reality When Purchasing New Construction

Transcription of New Construction Real Estate Video

Jay Seville: Hi I’m Jay Seville. I’m the owner of JustNewListings.com Realty and I wanted to bring up the subject of new construction whether it be single family houses, townhouses, or condos. How does this relate to you as a consumer, as a purchaser in the marketplace?

Is it smart to head off into the sales office on your own? This is called being a floater. You float right in. You following like with something and you start the process of writing a contract, making an offer. You need to understand the situation better from a sort of strategic vantage. You need to know where the builders are coming from on this so that you can get the best possible sales price. If you’re thinking about buying luxury real estate in great falls, Virginia consider this scenario.

One factor to consider upfront is do you have experience negotiating with builders. Do you know where they’re coming from? Most of you buying these homes have zero.

Two, are you going to bring the builder any more buyers? After you purchase this home, are you going to close more deals with this builder? Chances are the answer is no. If you’re the builder and you walk in there and you have an agent with you, especially if the agent is sort of at the top of the game closing dozens and dozens of transactions a year, or you Google the address and you come to this agent’s website so they’re constantly getting people inquiring about the builders properties.

If you’re that builder and you see this buyer with this agent next to him, are you likely to give this buyer a better price than you would have if the buyer were just by himself? Because if you’re just by yourself, you’re a floater and if you don’t pay the price the builder wants, the next floater will pay the price the builder wants. It’s just a matter of time and waiting and now, most builders can do that as long they’re in the general ballpark.

But if you go in there with the right agent next to you, there’s a huge financial interest here of the builder if that agent has a good experience and good experience is defined as the buyer’s agent believes that his buyer got a better deal than the floaters did. Then the other people came and then bought without an excellent agent.

If that agent feels good about it, he will steer more buyers to the builder. He will brag about the deal he got for the builder and you see where that leads to. Often, I’d close for example up to five deals with the builder before. So with an excellent agent next to you who is influential in the marketplace, you are a different scenario to the builder than you are on your own. When you’re with that agent, you’re represent an opportunity for him to reign in and form a working relationship with an agent and to get more buyers for his properties.

On your own, you’re a floater. You’re nice. We can all be polite and get along and close the deal but you will pay more on your own than you will with an excellent agent. Not to mention the fact that commissions are already set and the contract with the listing agent and the listing agent either gets to keep it off with himself or they’ll send half of it over to an agent like who negotiates the price down for my buyer.

So things to keep in mind. You are much more empowered as a consumer to buy Arlington Virginia real estate listings with me next to your or one of my agents next to you and negotiating a price down than you are on your own because of the long-term interest of the builder. Of course this is particularly true if you’re going in with the right type of agent, an accomplished agent etc. My website gets about 15,000 visitors a month uniquely. Many of the builders have properties. If you Google the address, they come to my website etc. So I’m the right person you should be dealing with. And I look forward to meeting you at the builder’s office.  Bye bye.