Michigan New Home Builders

We are beginning the process of negotiating a purchase price with a home builder in Michigan, which is an economy that has been hit hard in home depreciations. The home prices at $433,000, but they are offering $30K in upgrades, making the cost of the home $403,000. Being in Michigan, we obviously know we should be paying less than that because the home will depreciate more by the time it is built. Does anyone have any suggestions on how to negotiate to a lower price?

Thanks!

There is no magic to the process. Determine what YOU think the property will be worth at its lowest point, and then offer that amount.

If they won't meet your price, keep shopping. Good luck!

2008-04-04 09:55:34 by lala

Has been a custom home builder for over 30 Years. Birmingham Michigan livewellcustomhomes.com

Hello,

I am interested in purchasing a new home. How do I go about searching for new homes/new home builders in my area (Southeast Michigan)? Are there any good websites out there?

Thank you, your help is much appreciated.

Try:

http://www.newhomesource.com
http://www.newhomeguide.com/
http://www.move.com/

2007-10-06 15:38:31 by Stargazing

I am a residential builder and finish carpenter in Michigan. It is easier to find a spotted owl or the lochness monster then it is to see a new home under construction. With so many foreclosures here, building a new home would be completely stupid.......am willing to relocate to a better market.....thanks for your help.

Tons of condos going up in Seattle. Projects funded and underway. The union's pretty strong here so that will help with jobs/benefits/etc...

2008-01-22 15:39:17 by Patrick

I am currently renting in Michigan and have the opportunity to move into a new 2000 sq. ft. home for 150,000. The problem is the home is in a neighborhood that is 2 years old and only 9 homes have been built. The builder is going bust and cutting prices.The price has been lowered from 230,000 so it appears to be a great deal but I have little hope of further development in the future. So should I buy at a great price or pay more in a more developed neighborhood.

Sometimes another builder will come in and finish building in that development. Usually, there is already sewer, water, roads and the plots subdivided. I doubt the neighborhood stays unfinished forever. But you don't know what/who is going to come in and finish.

2008-03-27 19:43:47 by Mike W

My husband is being deterred from buying a newer home because it has empty lots and many of the homes in the neighborhood are still for sale. We live in Michigan where housing is at an all time low, is this a legit concern? Do you/have you loved with empty lots next door. How long? Did nobody else buy the houses in the neighborhood? What happens if no one ever buys the property? Can we have the option eventually to buy it at a low cost? If the builder goes bankrupt how does that effect the people who have moved into a completed home?

It’s not a great idea to be the first, or one of the first to buy in a new development. You can find question after question on this forum alone basically saying this:

“I bought a new construction home six months ago buy for $230,000. Now units with the same floor plan are now listed for sale at $185,000. What can I do?”

The answer: nothing. The early adopters often get punished. Basically you have no benchmarks to know if you’re paying a reasonable amount for this house. Maybe it’s worth $230K to you, but it’s only worth $190K to the majority of people. That means that most of the units won’t sell for $230, and the prices will start dropping.

Those later sales at the lower price will bring down the value of your home so that you’ll quickly be upside down in it. Given the slump in new construction sales and the cold (so I hear) Michigan real estate market, I wouldn’t want any part of this until more units sell so I can get a feel if the current asking price is appropriate.

2008-08-25 09:38:20 by tenpointsgirl