Author Topic: Discounts on standing inventory of new construction  (Read 5292 times)

0 Members and 1 Guest are viewing this topic.

Offline Agent Joe

  • New Home Realtor
  • Tourist
  • *
  • Thanks
  • -Given: 7
  • -Received: 4
  • Posts: 32
  • Gender: Male
  • New Home Realtor
    • Joe & Judy Real Estate
Re: Discounts on standing inventory of new construction
« Reply #15 on: February 23, 2020, 11:16:33 pm »
Another tip: ask your realtor to look up past closed prices. Not everything is on MLS but you can get the addresses and parcel #s from rental listings (since a lot of new homes in Irvine are bought as investment properties). Then use the address or APN to look up the final price on http://tax.ocgov.com/tcweb/search_page.asp.
« Last Edit: February 23, 2020, 11:27:11 pm by Agent Joe »
Joseph Du
Cell: 949-393-0835
Email: joe@joenjudy.com
WeChat: MasterJoeJoe
CalDRE: 02066402
JC Pacific Capital

Specialized in new homes and residential real estate investing.

Offline USCTrojanCPA

  • Your CPA Realtor
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2249
  • -Received: 1801
  • Posts: 8767
  • Gender: Male
Re: Discounts on standing inventory of new construction
« Reply #16 on: February 24, 2020, 05:01:15 am »
Another tip: ask your realtor to look up past closed prices. Not everything is on MLS but you can get the addresses and parcel #s from rental listings (since a lot of new homes in Irvine are bought as investment properties). Then use the address or APN to look up the final price on http://tax.ocgov.com/tcweb/search_page.asp.
This or ask a title rep to run the closing prices for you. You may not get the full picture as many builders are offering huge 6 figure design center credits (Shea Homes @ Padova is one of them).
Martin Mania, CPA
AgencyOne
CA BRE License # 01799007
CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline Dr. CA Real Estate

  • Tourist
  • *
  • Thanks
  • -Given: 9
  • -Received: 9
  • Posts: 62
Re: Discounts on standing inventory of new construction
« Reply #17 on: March 31, 2020, 04:10:28 pm »
From what Ive seen past two weeks with clients, Right now the smaller builders are doing some actual discounts off list price with design credits if not completely finished. Lennar and Toll brothers still sticking pretty close to list but giving bigger than usual (for them) design credits.
Kris Mendoza
Platinum Realty
CA BRE License # 02085321
ariesmail1@yahoo.com
310-227-1434 cell

Offline Soylent Green Is People

  • Abiding Dude. Housing focused
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 817
  • -Received: 1059
  • Posts: 2204
  • 3 John, Ch 1 V 2
Re: Discounts on standing inventory of new construction
« Reply #18 on: March 31, 2020, 04:17:55 pm »
Many of these builders are relying on funding loans through non-bank lenders. These non-bank companies are now unable to fund Non-QM loans and seeing their funding platforms restricted. If making a low offer, don't take closing costs from the builder by using a lender that might not be able to close. Bring in your financing approval through a Bank, or at least give the builder the comfort in knowing you have more than one available way to finance the property. The mere fact you are more than able to close with a range of financing in hand prior to contract can help you negotiate a great price for your new home.

My .02c

The following member(s) thanked this post:


Offline Dr. CA Real Estate

  • Tourist
  • *
  • Thanks
  • -Given: 9
  • -Received: 9
  • Posts: 62
Re: Discounts on standing inventory of new construction
« Reply #19 on: April 20, 2020, 04:34:18 pm »
Just had Lennar go down a bit on standing inventory for a client.
Kris Mendoza
Platinum Realty
CA BRE License # 02085321
ariesmail1@yahoo.com
310-227-1434 cell

Offline OCLuvr

  • Yearning for 949 / 714
  • **
  • Thanks
  • -Given: 19
  • -Received: 32
  • Posts: 466
Re: Discounts on standing inventory of new construction
« Reply #20 on: April 20, 2020, 06:40:47 pm »
What %?

Offline USCTrojanCPA

  • Your CPA Realtor
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2249
  • -Received: 1801
  • Posts: 8767
  • Gender: Male
Re: Discounts on standing inventory of new construction
« Reply #21 on: April 20, 2020, 08:33:38 pm »
Just had Lennar go down a bit on standing inventory for a client.

A bit? I've been able to get $50k-$100k off asking prices even last year.
Martin Mania, CPA
AgencyOne
CA BRE License # 01799007
CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline Dr. CA Real Estate

  • Tourist
  • *
  • Thanks
  • -Given: 9
  • -Received: 9
  • Posts: 62
Re: Discounts on standing inventory of new construction
« Reply #22 on: April 20, 2020, 10:54:00 pm »
Just had Lennar go down a bit on standing inventory for a client.

A bit? I've been able to get $50k-$100k off asking prices even last year.

More than usual would be more accurate then.
Kris Mendoza
Platinum Realty
CA BRE License # 02085321
ariesmail1@yahoo.com
310-227-1434 cell

Offline andy

  • Tourist
  • *
  • Thanks
  • -Given: 14
  • -Received: 1
  • Posts: 18
Re: Discounts on standing inventory of new construction
« Reply #23 on: May 19, 2020, 09:28:09 pm »
Best time to buy new construction homes is somewhat contingent on the buyer not being too picky on lot location and exterior features. Most publicly owned companies will gleefully accept  low offers on standing inventory and/or "last second cancellations" when their fiscal year end is looming. I've seen as high as 25 percent discounts from list price over the years on a few zero hour purchases. Average accepted  discounted offers are between 10-15 percent though. Still, "Ask not, get not".

Some publicly traded builders have fiscal year ends in June so it's not always a December purchase play. Discounts exist as well each end of quarter, although not as dramatic as FYE, on standing inventory and last second cancellations.

To the very nimble come great rewards!

My .02c

So let’s say FY ends June 30, 2020, do you have to close the home by June 30, 2020 or not just sign the purchase agreement by that date right?

Offline Dr. CA Real Estate

  • Tourist
  • *
  • Thanks
  • -Given: 9
  • -Received: 9
  • Posts: 62
Re: Discounts on standing inventory of new construction
« Reply #24 on: May 19, 2020, 09:50:31 pm »
Usually the incentives are based on closing by a certain date, they don't quite care when you sign the purchase agreement.
Kris Mendoza
Platinum Realty
CA BRE License # 02085321
ariesmail1@yahoo.com
310-227-1434 cell

Offline marmott

  • Yearning for 949 / 714
  • **
  • Thanks
  • -Given: 30
  • -Received: 61
  • Posts: 284
Re: Discounts on standing inventory of new construction
« Reply #25 on: May 19, 2020, 10:23:46 pm »
So let’s say FY ends June 30, 2020, do you have to close the home by June 30, 2020 or not just sign the purchase agreement by that date right?

You would need to close by the end of their fiscal year so they can report the sale as part of said FY.

Offline Dr. CA Real Estate

  • Tourist
  • *
  • Thanks
  • -Given: 9
  • -Received: 9
  • Posts: 62
Re: Discounts on standing inventory of new construction
« Reply #26 on: May 19, 2020, 10:53:14 pm »
Current promotions for most builders as far as commission goes is 4-5% of purchase price.
Kris Mendoza
Platinum Realty
CA BRE License # 02085321
ariesmail1@yahoo.com
310-227-1434 cell

Offline USCTrojanCPA

  • Your CPA Realtor
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2249
  • -Received: 1801
  • Posts: 8767
  • Gender: Male
Re: Discounts on standing inventory of new construction
« Reply #27 on: May 20, 2020, 09:56:09 am »
So let’s say FY ends June 30, 2020, do you have to close the home by June 30, 2020 or not just sign the purchase agreement by that date right?

You would need to close by the end of their fiscal year so they can report the sale as part of said FY.

They want you to close by the fiscal quarter end so they can recognize the revenue for the home on their financial statements. Best time to get into contract is about 30-45 days before quarter end on quick move-in homes with publicly traded home builders like Lennar so you can ensure you close by their fiscal quarter end. Just remember, not all home builders are public like Irvine Pacific and California Pacific so they offer these types of special quarter end incentives.
Martin Mania, CPA
AgencyOne
CA BRE License # 01799007
CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline USCTrojanCPA

  • Your CPA Realtor
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2249
  • -Received: 1801
  • Posts: 8767
  • Gender: Male
Re: Discounts on standing inventory of new construction
« Reply #28 on: May 20, 2020, 09:57:30 am »
Current promotions for most builders as far as commission goes is 4-5% of purchase price.

Yeah, more so for the publicly traded home builders the private guys like Irvine Pacific and California Pacific are sticking to their fixed broker co-ops.
Martin Mania, CPA
AgencyOne
CA BRE License # 01799007
CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline Cares

  • Yearning for 949 / 714
  • **
  • Thanks
  • -Given: 0
  • -Received: 83
  • Posts: 474
Re: Discounts on standing inventory of new construction
« Reply #29 on: May 21, 2020, 10:02:36 am »
Current promotions for most builders as far as commission goes is 4-5% of purchase price.

Yeah, more so for the publicly traded home builders the private guys like Irvine Pacific and California Pacific are sticking to their fixed broker co-ops.

I referred a cash buyer that was able to quick close on a CalPac home and they offered double co-op. They wanted to close before Dec 31 a couple of years ago.

 

Talk Irvine Links

[Recent Posts]
[FAQ / Rules]

Site Supporters



Related Links

Recent Posts

SimplePortal 2.3.5 © 2008-2012, SimplePortal