How much profit is in a builder spec home?

Looking at a spec home in a large development that is not selling well. They already discounted it from $249k to $207k

How much profit is there in these homes? How desperate are builders to get rid of these homes?

Will major home builders majorly negotiate the prices down even further, or do they stick to their asking price?

Well obvioulsy they can't afford to take a loss or bring money to the closing table. They may negotiate at this point. But don't get your hopes up for more than what you've seen so far. And if you know that they've reduced by $40,000, maybe that is as low as they can go.

There are too many variables to guess. Some builders are desperate, some are just waiting for the market to come back to their price. Profit depends on the builder. Some major builders will negotiate, some won't budge. Most would rather do upgrades than lower the price, but that is typically on new construction, not an existing spec house. Many builders have their fingers in alot of pies, and if one development isn't doing well, maybe another venture is to balance the bottom line.

Again, too many variables.