How do I negoiate with a custom home builder?

Tim
Home Buyer
Rochester, NY

We are planning to build a house on property that we already own. We have provided three prospective builders with our plans and received the initial quotes. We have reviewed the quotes and made some changes in order to get the price closer to what we intended on spending. The amended quotes are still not in line with what we want to spend. We believe that we have made all of the changes that we want to concede at this time. We want to make this as much of a win-win situation as possible but we are not exactly sure on how to proceed at this point. We have searched this topic on line but cannot find anything that speaks specifically to the topic

Answers (2)
Harlan Furbush
Agent
Rochester, NY

You're not likely to be able to negotiate a lot "price-wise". I've often been more successful in negotiating better materials, or moderate upgrades. Much of the builder's cost are fixed in terms of labor, material, and carrying expenses. They maybe more apt to shop around and get a better price on material upgrades that they are to discount the up-front price of the home.

Wed Oct 7 2009, 06:11
Bob Kirby
Agent
Rochester, NY
FIRST ANSWER

The problem with new consturction is the builder has fixed cost for the marterials to build your home. The builder's supplier's and sub's have a cost. In todays market , they are most likely working at the least that they a willing to do the job for a rock bottom price.You have three builders fighting for the job. If it could be done for less one of them would have come forward. Make sure that the builder you choose didn't make a mistake and can really finish the home at the price. Builder have been known to walk from jobs after receiving draws. It sounds like you need to spend a little more than you expected or compremise on the materials. Please don't ask the builder to leave every other nail or 2x4 out .Just a joke to drivre home the point. Interest rates are at, or near a 40 year low. Finance more and tighten your belt elsewhere for now. Build the most you can now so you will not regret later. Remember building is very trying. Don't let it interfere with the WE above. Bobkirbysells.com 585-719-3540

Wed Oct 7 2009, 05:20

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