Hi, I’m preparing to completely replace an existing seaside property on the Olympic peninsula of Washington state with a high quality prefab home. Such homes are quite common in the area, since the tendency towards each town being a little bit isolated often makes buying prefab an attractive and affordable option vs. building something from the ground up with an architect and contractor. However, for a non-customized single story building of about 2500′ to 2800′, prices are quite often about $150,000 or more, with the potential for as much as another $30,000 for all the costs of installing. However, when you look in real estate listings for the region, you can buy a very high quality fairly new home of similar size that –includes– some very attractive and large property, much larger than the present lot, all with a comparable sized house, for $200,000 – $250,000 asking price. So, it seems that the price of the home itself is a bit inflated. So what I need to know, is it standard practice for consumers to negotiate prices of prefab homes? In the present market, what percentage below asking price should I expect if negotiation is possible? I know that all markets are different and constantly changing, but any hints in this direction would be incredibly helpful.
Thank you all.
Prefab = previously fabricated, as opposed to fabricated on site. I know dealers want to phase out that word because it’s associated with low-grade fixed trailer homes and such, but that’s not the word’s fault. Regarding the lots, I should have been more specific — the site of my present house replacement project is 2 acres on a private beach, and that’s been my standard for comparion (though another example to reflect some of the apparent price disparity- 5 acres w/ ocean view in attractive wooded lot, asking price $150,000 for lot no building, $220,000 for lot with 2 story 3200′ square house). It’s closer to a $50/75,000 difference between constructing a new house on current lot vs. buying a new property with an existing house. Incidentally, Marlette is far and away the most commonly seen house and small business building design in the region. It seems local competitors are smaller businesses and tend to cater to a price range/market about 50% higher that of Marlette homes.
I also just wanted to say thank you for the replies so far. In regards to dealership practices — in your experience, do dealerships that negotiate price do so in response to present regional market needs, or is there a tendency to artificially inflate prices, resulting in closing prices more or less the same as dealerships with fixed prices (that is, using said marketing technique to appeal to customers who actually enjoy the negotiation process)?
Re: shopping around…the Olympic peninsula of Washington has a dearth of dealerships, though there are a number of smaller companies that deal in high quality log houses, wooden yurt or roundhouse designs, and more exotic manufactured home concepts that can be double the price but due to frequently changing shoreline building regulations might not be as cost effective an investment as would be the case for an inland lot.
Just looking at your figures, the house price does not seem inflated…you allow a $70000 window for lot purchase, which is reasonable depending on the size, location and of course the local real estate value.
All I can say is try to barter a price you are comfortable with to see what might be done. If this one company will not negotiate their price, then do not become discouraged, just try another company, which really you should shop around anyway. Just dealing with the first company you come upon would not be a good idea.