Do home builders negotiate on price? Yes. In October, 65% of builders offered sales incentives and 43% cut prices, according to NAHB. Builders with finished homes sitting unsold may be especially motivated to make a deal.
Here's something most buyers don't think about: when the market slows, homeowners and builders don't respond the same way.
If you're selling your home and the offers aren't what you want, you can take it off the market and wait.
Builders don't have that luxury. They've already spent the money to build. Every finished home that sits unsold ties up cash and keeps adding costs.
That's why some builders may be more motivated to negotiate right now. And that can work in your favor.
Fewer Buyers Are Making Moves
According to the National Association of Realtors (NAR), pending home sales, which are homes under contract but not yet closed, fell 7.3% in September and are down 11.3% from last year. Higher rates are making it harder for buyers to make the numbers work.
That report tracks existing homes, but builders are feeling the same slowdown. The National Association of Home Builders (NAHB) reports builder confidence fell to 29 in October, the lowest since June 2012. Buyer traffic at new-home communities hit its lowest level in more than a decade, outside the start of the pandemic.
NAHB Chief Economist Robert Dietz says demand is still there, but higher rates, high construction costs, and weaker consumer confidence are keeping more buyers on the sidelines.
A homeowner can wait for the right offer. A builder with several finished homes may have more reason to sell sooner.
Builders Are Already Negotiating
If you've assumed builders don't negotiate, look at what they're doing. According to NAHB's October survey:
65% of builders are offering sales incentives.
43% are cutting prices, the highest share since at least 2020.
6% is the typical price reduction.
That could mean a lower price. It could also mean:
A mortgage rate buydown
Help with closing costs
Upgrades that would otherwise cost extra
Look for Homes That Are Already Built
Here's a tip that can make a real difference: don't just look at the newest communities or the best-looking model homes. Look for finished homes that haven't sold yet.
These are often called quick move-in or spec homes. The longer one sits, the more reason a builder may have to consider an offer that gets it off their books.
Don't Just Ask What's Available. Ask What's Negotiable.
Don't assume the advertised price or incentive package is the best a builder will do. Some builders are more flexible on price. Others are more flexible on rates, closing costs, or upgrades.
This is where having your own agent pays off. The builder's sales team works for the builder. I work for you. I can help you compare what different builders are offering, find communities with more inventory, and understand where there's room to negotiate.
One important tip: many builders require your agent to be with you on your first visit. Call me before you walk into a sales office.
New construction is more common in some parts of San Diego County than others, so it helps to know where the inventory is.
Frequently Asked Questions
Can you negotiate with a home builder?
Yes. In October, 43% of builders cut prices and 65% offered incentives, according to NAHB. Rate buydowns, closing cost help, and upgrades are all worth asking about.
What is a quick move-in home?
A home a builder has already finished but hasn't sold. These can offer more room to negotiate, especially if they've been on the market for a while.
Do I need my own agent to buy new construction?
It's smart to have one. The builder's sales team represents the builder. Your agent represents you and can help you negotiate.
Let's Find the Best Deal
A homeowner who isn't ready to take a lower offer can wait. A builder with finished homes to sell has different priorities, and that can work in your favor. If you're ready to buy, call or text me and let's look at which San Diego County builders have completed homes available and what they're willing to offer.
Billie Bourgeois | REALTOR® Real Broker | San Diego County, CA DRE# 01703336
