How is the purchase of other manufacturers?

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We have a house that we love, for $ 469,000. The more we can afford right now is $ 430,000. (Thanks to the equity in the current home). The house was completed in 2/07, the still free from the builder and owner. It is not in an area, but a lot of manufacturers that bought and built the house. Do you think they are desperate to sell or really expect to get more than $ 450,000. Your asking price is already good for the region. Do not know how else than buying designer Joe’s owner.

11 Comments
  1. Reply
    Mary D
    May 25, 2013 at 9:34 am

    They usually won’t bend unless it’s on the market for a long time. See if they will fiance the deal you maybe able to give 5% down

  2. Reply
    INDIGENOUS
    May 25, 2013 at 10:06 am

    I would say to wheel and deal especially in todays market…also remember to get comps on the property before making an offer…this will tell you what the property is really worth…I am a loan officer by trade if you have any questions email me at rico@baycityfremont.com

  3. Reply
    DJ B
    May 25, 2013 at 10:57 am

    It really isn’t much different because you are considering a home that is completed. Is the builder desperate? Only he knows. If you’ve done your homework, and that means researched the builder, and you are comfortable with what you found, make the builder an offer. You have nothing to lose by offering him $ 430,000. Maybe less depending on how long the house has been on the market. If you’re working with a Realtor, they can protect your rights and advise you on what they know about the builder and surrounding community. Good Luck!

  4. Reply
    utarch
    May 25, 2013 at 11:01 am

    The builder may need to unload the property to get out from under his interim financing. However, most homeowners are also under pressure to sell, usually because they have already bought another house and don’t want to be making 2 house payments, so that kind of equalizes the two situations. The builder knows exactly what the house cost to construct, and how much he needs to pay off the interim financing. But Both the builder and Joe Homeowner want to maximize the return on their investment and will try to sell at the going “market price” (determined by recent comparable nearby sales). Offer the builder $ 420,000.00 for the house you love – leave yourself $ 10,000 worth of negotiating room. You can always up your offer, but you can never down it.

  5. Reply
    jim w
    May 25, 2013 at 11:33 am

    youre buying from the builders bank the one that finaced the builder. thats the diffrence

  6. Reply
    Mike
    May 25, 2013 at 12:00 pm

    Yes, they are desperate.

    I would offer them $ 420k…. they worst they can say is NO.

    If it is still not sold by early November, they will be REALLY desperate…. they dont want to carry that inventory into the new year. They dont want to be carrying it right now.

    This is the peak of the Real Estate season… this is the time of year things should be moving… and it’s now. Its a flop. After school starts things start to slow down, and slow down more as holidays approach…. they are going to want to get rid of it.

    Remember, your total house payment, including insuance and taxes, should be no more then 25% of your take home pay.

    Some people can stretch that to 33%… but that should be the ABSOLUTE MAX!

    And be sure you get a FIXED RATE mortgage. 🙂

    Most signs say the RE market will get worse before it gets better. You could get your home on the market and sell it… then rent for a few months until you find the perfect deal and you can pounce on it…. because as it is now, if this new house loses value, your current house is probably going to lose value as well.

  7. Reply
    SP
    May 25, 2013 at 12:20 pm

    Use an agent who can do the negotiations for your. Typically, they are good at negotiating and if there are any negative responses from the builder, the agent will act as a semi permeable barrier. I feel that it is worth the brokerage you will pay for his professional services as you will save a lot on the whole deal…

    Good luck

  8. Reply
    artwhiterealtor
    May 25, 2013 at 12:25 pm

    Only one person has the answer to that question, the builder/owner. The answer is going to depend on how you ask it. The best way to ask that question is put it writing, and by that I mean in the form of an offer to purchase. The offer should be backed up with a demonstration that you are not only willing, but ready and able. Do you have pre-approval for a loan? Is your offer contingent on the sale of your other property? If so, then how can you demonstrate that the other property is likely to sell at a price and at a time that will allow you to complete the transaction in accordance with the terms of your offer? The market is full of tire-kickers and lookie-lous. The seller is a business person and not likely to want to waste time. A serious offer will get a serious response. That serious response could be negative. In that case you are free to move on to something else, but keep an eye on the property for price reductions or to see if it’s still around in 30 days. Your Realtor will know how to craft an offer with the best chance of success to fit the situation.

  9. Reply
    DvSkV
    May 25, 2013 at 12:28 pm

    I think UTARCH offers you the best perspective of the situation and would like to ADD a few things I did NOT see mentioned that require consideration “if I were in your shoes.”

    #1 The amount of EQUITY you estimate in your Home could also be off target as you will never know the exact amount until you place it on the market, get a written sales contract from a qualaified party buying it plus you must deduct for real estate commissions, repairs resulting from home inspection etc and closing costs.

    #2 Unless you have a lot of savings in the bank, most likely you all would have to make an OFFER to PURCHASE based on the CONTINGENT SALE OF YOUR CURRENT EXISTING HOME so what I want to bring to your attention is a Low Ball Offer on Your End to the Builder and his Bank is so-so and not something he could jump for joy!

    #3 I AGREE you have absolutely Nothing To Lose by Making a ridiculously low offer below asking price..but certainly think about what contingencies are absolute must to protect yourself.

    FYI only 1 of the 3 single family homes we have owned was ever bought directly from builder and what the builder advertised back then was help with closing costs (something you should think about writing into your offer to purchase)…I was told by an experienced agent in our area where you see big monster new homes vacant, that the builder has a limit or floor on how low he will be willing to drop his price…that they would rather give you specific upgrades instead of lowering the price…

    Best of Luck!

  10. Reply
    amanda w
    May 25, 2013 at 12:44 pm

    Buying direct from a bulider is like buying something direct from a manufacturer. Like if you went directly to Suave to purchase hair shampoo rather than to Walmart to purchase it.
    Because the builder had to pay money to bulid the home- then when someone else buys it the builder will charge more to make a profit. Then when that person sells it they will charge more to make a profit.
    So it is best to buy direct from the builder to eliminate the middle man.

  11. Reply
    Coo Coo Girl
    May 25, 2013 at 1:42 pm

    It’s not always best to buy straight from the builder. Why? Because if you don’t have any experience in dealing with them, they can take you to the cleaners very easily. I knew a builder that bought 2 1/4 acres at a sheriffs auction for $ 30,000, kept a 1/4 of an acre built a house on from the leftover materials that he used to build his house and sold the house for over a quarter of a million dollars. It only cost about $ 75,000 to $ 80,000 to buy the land and build on it. Ohh and after that offered to rent the 1/4 to the new owners. Chances are that the house your looking at is going to be under the same circumstances is about 50/50. Home builders do this all the time. If you can I would suggest that you get a good real estate agent. They can help negotiate a fair deal and handle all the paper work and believe me there’s a lot of paper work to do. Yeah it’s going to cost you some up front, but will show the builder that you have other options.

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