When property owners start to explore plans for new home construction, many of them wonder, “Can you negotiate a home construction price?” The simple answer is no, you cannot.
Production homes offer diverse floor plans at different rates. They do not, however, give buyers room to negotiate because the prices are set based on materials and labor for specific houses and layouts.
Don’t despair—a set price isn’t necessarily a negative feature. Many buyers find they benefit financially from buying a new home construction instead of opting for an older, already-constructed home. Here’s why:
No Bidding Wars
If you are trying to buy and running into a lot of competition, you’ll probably end up engaging in a bidding war. Bidding wars can mean that buyers end up spending much more than they had planned on for a home. The problem becomes much more intense during a “seller’s market,” which often happens when homes are in low supply or markets enter a housing bubble.
New home construction makes it easy to avoid bidding wars. Instead, buyers choose the floor plan and features they want. Then, they pay a set price to take ownership without any haggling.
Between early 2020 and mid-2021, home prices increased by about 24 percent. Obviously, price increases differ according to location and market trends, but the last few years have made homes more expensive over time.
People who have production homes built can benefit from this scenario. A project that costs $150,000 to build has the potential to become more valuable by the time construction ends. This is the beauty of the set new home construction price. You lock into a price before construction starts, and that’s what you pay when construction ends.
Given the right situation, that $150,000 house could appreciate in value home without adding any cost to the project. You’ll walk into your home with equity already accrued!
Buying an existing house can get complicated. Besides price negotiations and potential bidding wars, buyers need to think about things like getting approved for mortgages and paying closing costs based on a buying price that they don’t know yet! The result could cost thousands more than expected.
New production homes have set rates, so buyers know from the beginning how much they will spend. Knowing the actual cost can reduce anxiety and improve financial preparations.
Older houses often come with many problems that buyers need to address. Repairs add even more money to the cost of owning a home. Even worse, buyers may not know that existing homes have dangerous issues that put their families’ well-being at risk.
Some fairly common issues with older houses include:
- Deteriorating roofs that can leak
- Aging foundations that jeopardize the home’s integrity
- Outdated electrical systems that do not meet the power requirements of modern appliances
- Faulty plumbing that gets worse as each year passes
- Hazardous materials (lead, asbestos, etc.)
- Energy inefficiencies that add to utility costs and make rooms uncomfortably hot or cold
New homes do not have these problems because developers design them to meet the expectations of modern families. You won’t rack up costs trying to update your home or make it livable after already committing to the hefty price tag that came with it.
Build On Your Land’s Floor Plans
Buyers cannot negotiate the prices of Build On Your Land’s homes. After looking at alternative options, this is an extremely advantageous home-buying option! You can still choose floor plans that fit into your budget. If you’re looking to spend less than $170,000, you should explore floor plans like:
If your budget extends up to $255,000 you should focus on options like:
Thanks to set prices without negotiations, you can choose how much you want to spend by filtering floor plans that match your unique needs. Contact Build On Your Land for more information on the costs and stages of building a home on your land.