Short Answer
Negotiating on new construction is different from buying an existing home. Builders often have less flexibility on price but may offer incentives like closing cost credits, upgraded finishes, rate buydowns, or covering HOA fees. The best time to negotiate is at the end of a quarter or year when builders are trying to meet sales targets. Having your own agent represent you is essential, as the builder's agent represents the builder.
New construction negotiations are more about incentives than price reductions. Builders typically have set price structures based on their costs and profit margins, but they have flexibility in other areas. Common incentives include paying closing costs, buying down the interest rate for the first few years, including free upgrades like granite countertops or hardwood floors, covering HOA fees for a year, or including appliances and window treatments. The best time to negotiate is when the builder is motivated. End of month, end of quarter, and end of year are prime times. Builders also become more flexible as a development nears completion and they want to sell the remaining inventory. Having your own buyer's agent is critical. The builder's on-site agent represents the builder, not you. Your agent can negotiate on your behalf and help you understand what is a reasonable ask. Do not assume you cannot negotiate on new construction. Builders expect it.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I have negotiated significant incentives for buyers purchasing new construction homes. Builders want to sell homes, and they have more flexibility than they let on. The key is knowing when and what to ask for. If you are looking at new construction, let me come with you to the model home so we can discuss strategy before you talk to the sales agent.
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