Home Buying in Cotuit>Question Details

S Ford, Home Buyer in 04073

Can construction prices be negotiated just like re sales?

Asked by S Ford, 04073 Wed Mar 10, 2010

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6
Ken Lambert’s answer
Hello S- I guess I'm confused as well regarding what you're asking. Are you trying to have a new home built for you? Trying to see if you can get some contractor bids lower? If that's the case, Yes- most contractors are looking for work and will do stuff at close to cost just to keep busy and the truck on the road.
BUT- beware of any sub or other contractor that is 50%-70% of everyone else. Something is wrong there- most likely they are not carrying all the necessary workmens compensation insurance, etc, etc. You have to verify all that stuff. That is how most contractors cut their bids. That, and lower quality workmanship or materials.
There's no magic...

If I can be of any help, please let me know. Thanks,
Ken L.
0 votes Thank Flag Link Sun Mar 14, 2010
Anything can be negotiated. A lot of construction workers are real hungry these days. That leads to a lot better bargaining for you. Consider getting several different bids and then go for a few more rounds until you get the lowest possible one.
0 votes Thank Flag Link Thu Mar 11, 2010
S Ford:

I am selling some new construction and when the buyers have a solid position then we definitely willing to negotiate. It really depends on what you are bringing to the table. If you do not have a home sale contingency then that carries a lot of weight for a seller. Best
0 votes Thank Flag Link Thu Mar 11, 2010
Hi S Ford,
Here in San Antonio, <u>some</u> builders will neogtiate on price or on incentives. It really depends. Some have told me they will negotiate some, others are upfront and say no.

Some of the incentives builders use may be paying your title policy, or offering to sod the whole yard, etc. for using their preferred lenders, and others have incentives that are flexible. For example, they may offer $10,000 on any inventory home to be spent your way. This could be to reduce the price OR pay towards your closing costs. You choose.

Custom builders....these guys usually know they are in competition, so be careful with the lowball. It's low for a reason...

Anyway, hope this helps! Happy hunting!

John King, Buyers Agent
(210)445-2631
Mission Realty
johnkinghomes@gmail.com
http://www.johnkinghomes.com

Selling homes and land in San Antonio, TX since 2004!
0 votes Thank Flag Link Wed Mar 10, 2010
Are you referring to new construction and or yet to be built--Yes, and consider keeping an eye out to ensure work is being done properly.
0 votes Thank Flag Link Wed Mar 10, 2010
Are you talking a larger scale builder? Or a contractor for remodeling type jobs? It depends on the contractor. But remember, even if the price seems higher than you'd expect, a lot of times the costs are reimbursement for materials, which get expensive. And he's got to pay out his crew etc - after all that his profit margin may not be all that great. But if you're doing a lot of work with him, the contractor might be more willing and able to negotiate a bit. The economy is tough and everyone is trying to be competitive!

Good luck,

Richard Schulman
Keller Williams Real Estate
0 votes Thank Flag Link Wed Mar 10, 2010
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