Many people choose to build brand-new homes instead of purchasing an existing one. Starting from scratch can be exhilarating, but also quite expensive. Negotiating with DR Horton, a new construction builder, can be daunting, but is it doable?
You can negotiate with DR Horton during the building process. Negotiating is normal in new construction, and builders typically expect it. The best things to negotiate on include price, upgrades, and vendors.
Below, we’ll discuss everything you need to know before you start negotiating your home building price with DR Horton. Keep reading to learn the best tips!
Can You Negotiate with DR Horton?
You can negotiate on many different things if you choose DR Horton as your home builder. You can negotiate the actual price of your new home or on things like vendors or fees.
Sometimes, negotiations will also include things like upgrades. For example, you might want to change carpet to hardwood or upgrade to stainless steel appliances.
Tips for Negotiating with DR Horton
There are several things to keep in mind when negotiating with home builders such as DR Horton.
These tips will help tremendously in the negotiation process:
- Look for pre-built inventory
- Use vendors who have a relationship with the builder
- Time your negotiations correctly
- Ask the builder to pay closing costs
- Look for other discount opportunities
Below, we’ll discuss how each tip can help lower the price of your new home.
Look for Pre-Built Inventory
Home builders like DR Horton usually have a pre-built inventory, or homes already built on lots they are seeking to sell as quickly as possible.
Knowing they could make money immediately if you bought a pre-built can make your builder more willing to negotiate on price, especially if you agree to a quick closing.
Use Vendors Who Have a Relationship with the Builder
Builders like DR Horton are known to be more flexible when you use their preferred vendors.
This is because these vendors give the builder more control over the building process.
Time Your Negotiations Correctly
You’ll get the best price on a home at either the grand opening or grand closing of a neighborhood.
Builders are often eager to sell the first few homes in a new neighborhood quickly because it helps get the project off the ground.
At the grand closing of a neighborhood, builders are eager to sell the remaining homes so they can move on to the next project.
Negotiating a deal at both times saves DR Horton money, as they won’t have to pay overhead on the remaining builds.
Ask the Builder to Pay Closing Costs
Closing costs include all the fees and upfront costs associated with the final stages of buying a home.
Even though you may not have to pay out of pocket, closing costs can increase your mortgage interest rate or monthly payments.
If DR Horton is particularly eager to sell a new construction home, they may agree to pay closing costs and things like upfront HOA fees.
Look for Other Discount Opportunities
Sometimes, making a bigger down payment or giving DR Horton a longer timeframe to complete the build can help you save money.
If you’re willing to be more flexible, DR Horton will likely follow suit.
What Types of Negotiations Can You Make with DR Horton?
There are many things you can negotiate while building a new house. Each method can help you save money on material, labor, and building costs.
Some of the types of negotiations you can do include:
- Price negotiations
- Non-price negotiations
- Ask to use preferred vendors
Below, we’ll discuss how each method can save you money.
Price negotiations are as common on new builds as on existing properties.
The beginning phases of development are the best times to ask for price reductions.
This is because builders typically want to get started on the project as quickly as possible.
Non-price negotiations are not directly related to the price of the home, but to the payment process.
There are numerous ways to negotiate with builders aside from the actual price of the home.
- Ask the builder to delay closing. This will give you more time to sell your previous home.
- See if the builder will space out your deposit payments over time. This often makes the cost of buying a home more affordable.
- Ask for extra features at no additional cost. It is usually easier to ask the builder for more features than to lower the purchase price.
Non-price negotiations are a surefire way to get a great deal.
Ask to Use Preferred Vendors
Builders like DR Horton usually have incentive programs in place with different vendors and lenders.
These programs usually allow your builder to give you certain discounts if you use one of their preferred companies.
Your real estate agent will likely be able to access this information and let you know what is available.
Building a new home is a daunting yet rewarding experience full of excitement and dread.
Most of the dread comes from finances, so effectively negotiating can be key in relieving some of that anxiousness.
You can negotiate with DR Horton on price, vendors, or even things like upgrades and help with closing costs.
Negotiating sooner rather than later is always best, so keep these tips in mind and decide what will work best for you.