Negotiation advice on new construction inventory home

[Andy Mu]

Hi all,

I am a long-time lurker here on BP... I have just moved to LV and ready to buy my first home. I am a novice so I really need some advice for my on-going negotiations.

Here are the facts.

New constructed home SFR 2300 sqft, apparently "fell out of escrow" from another buyer and is now back into the builder's inventory. Here's where I came in on this deal.

Initial listing price $303k with some options from previous failed transaction

New offer price $297,000 with options that were specified by previous buyer who fell through.

After some negotiation, got price lowered to $291,000 with some additional options that I wanted, but not everything that I requested. Builder to give 3% towards closing cost for using pref lender. I am using their preferred lender which put me at a rate of 3.75% fixed 30yr.

I countered with $288,000 and seller came back with the following creative offer:

- stuck with $291k sale price.

- matched my anticipated monthly payment for my proposed $288k price by lowering my interest rate to 3.625% and offering to pay 3.5% (up from original 3%) of sale price towards closing costs. I am assuming that they are paying for mortgage rate discount point?

- builder explained to me that they rather not budge on price... due to assessors and overall not good for the rest of the community for selling at reduced price.

My question is, what should my next step be?

Thank you all for your help.