One strategy you might want to consider is buying the $500K unit across the street and getting the builder to throw in the “extras” from the house you like. Of course that will depend on what those extras are. If they are things like nicer appliances, light fixtures, or other easily replaced items, then it should be no problem getting them. Even something like better flooring or countertops isn’t out of the question. But if it is a three-car garage vs. two or something like that, then obviously there isn’t much they could do. And of course the view isn’t a negotiable item, so if that is really important to you it might be a deal breaker.
Other items you could stick them for:
If there is anything left to do in terms of finishes (carpet, paint, trim, appliances), then go for the highest-end items the builder offers. From your descriptions it sounds like these might be “fully finished,” so maybe there’s nothing to do here. But see below for some items you could ask for even if the builder considers the unit done.
Interest rate buydown – since interest payments don’t contribute anything toward your equity, getting your rate lowered is a big plus if you plan to stay in the house. Since you plan to stay put, I would go for points to lower the long-term rate, not just a 3/2/1 shorter-term buydown.
If any appliances are not included, such as refrigerator or washer/dryer, get them thrown in. Of course make sure to get quality brands.
If you plan on re-painting any rooms, decide on the colors and have the builder do it.
Have the garage (if present) finished out. Garages are often “unfinished” in terms of painting, sealants for the concrete, etc. We had this done on a place we bought and it made our garage look lots better than the neighbors.
Nothing says a “finished” house can’t have trim added for baseboards, crown molding, etc. – assuming these aren’t already present and are something that suits your taste and the style of the home. This will be easier to get if the builder is still working on similar units in the area (whether in the same development or nearby).
Pre-pays of HOA fees and Mello-Roos are OK, but these don’t really add to the value of your house they way physical upgrades do, and they create “adjustment shock” later when you have to start paying. The big exception would be if you can get the builder to completely pay off any Mello-Roos, so that in the future you can market the house as “no Mello-Roos.”
These are all ideas to use if the builder won’t give you a significant price break. I’m a big proponent of getting the lower price if possible. That lowers your interest payment and your property taxes (an important point in California, where the purchase price is critical for the tax assessment), and you can pursue any upgrades you want with the unspent money. The only item above that I would consider really worthwhile as a “hidden” concession is the interest buydown, and then only because you indicate a plan to stay in the house a long time, so that savings from the lower rate would add up.
