Negotiating on a new home often depends on the builder. Typically, home builders will set the price of the home based on many factors, such as location, materials, design specifics and labour – but that doesn’t mean you can’t (or shouldn’t) ask about pricing.

Negotiation can hinge on factors such as:

• Construction: Consider if the construction on the home is still in progress. If a ready-to-go home has been sitting empty for a period of time, the builder may be more keen to negotiate with you. If the home is still six months out to completion, it may be harder to lower the price tag.
• Demand: The opportunity to negotiate can depend on demand and conditions in your local market. When the housing market is competitive, that can make it harder to negotiate, as you may be competing with several other buyers for the home.
• Timing: New homes are often built in new subdivisions, meaning the builder is likely to keep the sales price consistent in the area they’re actively building in. However, if you’re one of the first buyers in a new division, you may see a price reduction as you’ll be living in a construction zone for a while.
• Flexibility: If you can save the builder time in the long run, that also saves them money. Being easy to work with, like choosing from their predetermined interior finishes, can help the process run smoother on both sides to create a reciprocal relationship.

If the home price is set in stone, consider other areas where you may be able to negotiate. For example:

• Appliances
• Possession date
• Warranties
• Finishes or upgrades
• Landscaping
• Conditions or contingencies

Negotiating truly does depend on the builder, so don’t be afraid to do your research when you find a home you love.

Ultimately, don’t choose your home based only on a sale tag, but choose the home that fits your needs!