New Construction Negotiations - What You MUST Know

Looking to buy a new construction? Wondering if you can negotiate the price? Good news! In this video, Charles Lewis reveals the secrets to successful negotiation when buying new construction. He’ll show you how a builder's sales office works, discuss the different options available, and explain why negotiating is possible. Don't miss out on this valuable information - subscribe now for more real estate tips and tricks!
Charles Lewis is a REALTOR® in the Austin area and helps people buy and sell houses all over the Austin metro area. Schedule a no-obligation phone call to find out how he can help you accomplish your real estate goals: bit.ly/ATXPhone
Charles Lewis
Keller Williams Realty
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email: [e-mail]
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HOW TO HIRE THE RIGHT AGENT
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READ THIS IF YOU’RE SELLING YOUR HOME
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READ THIS IF YOU’RE BUYING A HOME
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[@jeffpiatt3879]

I have watched this channel for a a couple years. When planning my escape from Austin, I looked at a number of possible new home builds. Most home builders contracts are extemely one sided "contracts of adhesion" "usurious" etc. My advice is to have an attorney review any contract you might want to enter into with a home builder. The attorney will usually tell you to "run"- and rightly so. Virtually every new home builder contract is OVERWHELMINGLY in favor of the builder and they usually ask you to waive your rights to court. It's tougher now for these guys, now, with higher interest rates, so get all you can from the builder. You should also consider hiring a third party, possbily architect or builder consultant, to perform inspections and advise you on materials to be used. Home builders will use the absolute cheapest junk in the way of electrical and plumbing and roofing that they can get away with. You need a knowledgeable person, looking at plans and submittals, to keep you from buying junk. There are very few protections for new home buyers, in Texas.

[@SFSCharles]

First of all, thanks for watching my channel and sharing your thoughts. Theoretically many of your suggestions make sense, but not every homebuyer has the budget for a custom build, which usually includes things like an architect and the selection of specific building materials.
A production builder will not offer those types of options. In fact, it has only been recently that buyers could choose things like the color of the cabinets. The surge in demand two years ago forced builders to shift to selling only “spec” homes, which means the builder makes all the design decisions and the buyer chooses from what is available.
You might consider visiting the sales office in communities with homes starting in the $300k’s and then visit ones with starting at prices in the $800k range. You could ask about building materials, but touring the model will provide clues why those prices differ. Pay particular attention to things like the cabinets, the flooring, the windows, and light switches.
You are correct, the builder’s contract will favor the builder (their attorneys wrote it,) and it’s always good advice to have your attorney review the contract before signing. Much about what you allude to concerning specific clauses could also be said for the sales contract for a car, home appliances or electronics. Before making any kind of purchase, there must be a level of trust that the other party will do what they say they’re going to do and honor their warranty coverage.