Why big named builders don't negotiate on price.
- Patrick Stuckwish
- Feb 4, 2023
- 1 min read
If you're a home
buyer, chances are good that you've heard of these big named builders. And if you've been looking for a new house, you've probably been annoyed by their refusal to negotiate on price. But why does this happen?
Well, it's actually not as simple as "they're just being stubborn." There are several factors at play here, but the main one is that these companies don't want to risk losing out on a sale. They want to make sure they sell every single house they build, so that they can keep building more houses and make even more money.
But let's get into some specifics:
1) The more houses they sell, the faster their inventory turns over. This means they don't have to sit on any inventory—they'll have no problem selling all of their houses quickly enough to keep up with demand (which will also help them stay competitive).
2) The more houses they sell, the more cash flow they generate. This means they can keep buying materials and hiring workers at a steady rate without worrying about running out of money or having their workforce dwindle because people have left due to lack of job security or low wages.
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