Negotiating with builders on new homes.

immortalbjr on 10/12/2016 - 21:35

Have people had any luck trying to negotiate with different builders on contracts?

Have recently purchased land and now looking to build a new home for around the 300-350 mark, home only. Being a landscaper im happy to do the landscaping works myself and are aware of the costs that are involved with everything outside of the house walls.

Looking at high set homes my partner is keen on builders estimates are anywhere from 290-350. Im well aware the inclusions and facade will vary slightly however the prices seem to vary quite a bit for basically the same house at the end of the day, im also well aware different builders are going to have different overheads and margins they need to make.

Im going to give it a good crack when we find a builder and plan we like regardless but was just curious if people have had any luck negotiating a contract down between builders knowing exactly what they're after.

Home & Garden

Comments

  • captobvious on 10/12/2016 - 22:01

    I own a construction firm, Costs will vary depending on the quality of build, inclusions and sq mtrs. You can negotiate to do some work yourself like the landscape, some builders allow you to organise your own trades and will exclude that cost from your build.
    There are also tactics to get the work, low quote and request extra from client later in the build. All quite normal as part of contract.

  • altomic on 10/12/2016 - 22:12

    what about a kit home?

    like valleykithomes?

  • GangGang on 11/12/2016 - 09:22

    Firstly, shop around. My wife & I fell in love with a Masterton home which was way out of a price range even for the basic package. We were devastated & then decided to go with a smaller but still well known company. The difference between the companies price was about $>50,000 so we saved alot. I also took out some items of the house because i was able to get it cheaper. Builders usually let you do this but only with a few things. Also when things went wrong i made a fuss about it & got a freebie.

    People will talk about quality with the major builders but to me they all hire sub contractors and do all the same things. Everything is a rush these days.I've known people that went with the big boys & have had major problems. I've only had small problems with paint marks and some dents. Maybe i was the lucky one.

    You could also do owner builder & get a supervisor to run the show. You will be able to purchase every single item yourself and bargain your way through everything.

  • immortalbjr on 11/12/2016 - 11:48

    In a perfect world would love to have the time for a kit home or owner build but unfortunately wont be this build. We have a new born due around the same time the land will settle so I just need someone to take care of the house for me, even just planning and doing the landscaping for our larger block will keep me occupied enough between paid work and my family.

    I know the size and inclusions are a major factor but theres also profit margins, which I want to know if people have had any luck negotiating down on :) I dont know what builders work off but I imagine it would have to be around 30%, just curious how I would go getting 5% off. Like I said im going to ask anyway, but would of liked to know if others have had any luck.

  • Foxtail on 12/12/2016 - 11:21

    Do your own floor plan and list of inclusions plus what you want to supply and they fit (like aircons & kitchen appliances) then go to 4 builders for a quote. We did it a few times quotes on exactly same varied by $25K

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