One of the biggest and most important purchases an individual may make during their lifestyle is their residence. There are plenty of options available for them and one of these is buying a new home build. With a decision to be made such as this it should be an informed decision. This means having a good understanding of how the acquisition of a new home build works. That way the person buying the home is aware of what room there is for negotiations that work to their benefit.

How Does Buying A New Home Build Work?


Individuals who are interested in buying a new home are looking at homes that have never been lived in before. But there are additional benefits to this type of purchase. In order to complete the transaction for this type of home, the purchaser will be buying from the builder who is the current owner of the home and property it resides on. The negotiations for the purchase may not be direct with the builder but with a third party that the builder has hired to handle the sales of the new builds.

While in many cases the sale will take place between the buyer and builder there are investors who buy up new homes and put them on the market to be sold as new homes.

The Benefits of Buying a New Home Build

For those that are going to invest in this type of residence, they want to be well informed as to what the benefits are.

What Can You Negotiate On New Construction?

Just because the purchase involves a new home build it doesn’t mean that there isn’t room for negotiations. Many buyers of these types of homes for the first time assume that everything about the new home is set in stone. That there is no room for negotiations. This is far from the truth and sellers realize this and give themselves room for negotiations. It is up to the buyer to take advantage of these depending on what their wants and needs are.

Builder Incentives

The building industry is a competitive one which is good for the buyers. It means that the builders will entice prospects with the builder’s incentives. They may not move on the asking price but may be willing to add extras to the home that have their own value. For example, a potential buyer may want to have more windows or some other types of upgrades. Another incentive is an early closing or additional landscaping. A potential buyer of a new home needs to know something about the builder and what they have a history of providing by way of incentives.


One of the tasks that most don’t enjoy doing when buying a new home is arranging for financing. Many times in order to make this easy home builders will offer financing solutions. A potential buyer should consider these but not just assume that they must go with one of the builder’s financers. Shopping around for the best deal on financing should be a priority. There should be room to negotiate with the builder as to who will provide the financing. In some cases, if a buyer comes in with a better financing deal than what the builder is offering, the builder will try and beat it.


While there are a lot of benefits that come with a new home build some think that a drawback may be the “cookie cutter” approach that is taken with the builds when they are in a new development. This is an area where new home buyers like to negotiate for two reasons. One may want upgrades that are more suited to their lifestyle and secondly, they want their new home to have a uniqueness to it.

They can achieve these goals by negotiating some of the upgrades that may be available. For example some of the exterior finishes, the finishes used in the interior, and different appliances.

Lot Location

Another area where there may be room for negation is for lot location when the builds are taking place in a new suburb. Normally prime lots cost more but some builders will negotiate on the price of these. It can be hard to visualize a completed lot when it is still in the construction phase, but it is important to try and visualize what the traffic will be like once the entire build for a new area is completed.

Closing Date

What is often important to those buying a new home build is when it will be move-in ready. Not only must the home itself be in this move-in condition but access to the home while another construction is still underway will be important. In most cases, there is room for negotiation when it comes to the closing date. When the builder knows a home has been sold their attention on the completion of that home will become one of their priorities.

The Right Negotiation Approach

Business Deal Agreement

Unless a person is familiar with the buying and selling of homes it can be a challenge to be a good negotiator. Having the knowledge of areas that can be discussed is one step but being able to negotiate a good deal as a buyer can be a little overwhelming. For this reason, it is well worth relying on a professional like a real estate agent to help with this. They have the knowledge and expertise to carry out negotiations as well as know which ones may be possible.

Builders have their own experts that handle the sale division of the new homes. A real estate agent is on par with these professionals and they are able to act as the buyer’s representative. These experts know what the seller’s representative will budge on and what will remain firm. This allows the buyer to have a clearer understanding of what is available to them. They can then weigh out as to whether they want to go ahead with the purchase based on what their real estate representative has been able to negotiate for them.

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