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Negotiating with home builder

Posted on 12/10/14 at 1:38 pm
Posted by HoLeInOnEr05
Middle of the fairway
Member since Aug 2011
16834 posts
Posted on 12/10/14 at 1:38 pm
Wife and I are having a house built for the first time. What are some things to ask for when putting in our offer? Builder is already putting in hardwoods, walk-in shower, and crown molding. Should we ask for stainless steel appliances instead of black? Blinds? Upgraded counter tops? What's the norm here?
Posted by ItNeverRains
37069
Member since Oct 2007
25459 posts
Posted on 12/10/14 at 1:47 pm to
Ask for everything you want in the home. If you don't know everything you want in the home, you should not be custom building
Posted by HoLeInOnEr05
Middle of the fairway
Member since Aug 2011
16834 posts
Posted on 12/10/14 at 1:53 pm to
Technically the builder builds the house, then we are buying it from him.
Posted by NC_Tigah
Carolinas
Member since Sep 2003
123915 posts
Posted on 12/10/14 at 2:13 pm to
quote:

Technically the builder builds the house, then we are buying it from him.
Then search the market for alternate homes as you approach a purchase date. If you find better value elsewhere, use that as leverage. If the builder's price is nonnegotiable, pull the trigger on the alternative.

There is money to be saved by choice of subcontractors (cabinetmakers, electricians, etc) and product/deals. But it sounds like you're looking at a semicustom spec scenario. Often the builder already has his subs and product range selected for spec projects.
Posted by HoLeInOnEr05
Middle of the fairway
Member since Aug 2011
16834 posts
Posted on 12/10/14 at 2:25 pm to
Our builder owns his own building supply company.
Posted by hungryone
river parishes
Member since Sep 2010
11987 posts
Posted on 12/10/14 at 2:29 pm to
There is no "norm". It's what you want....but also consider the standards for the neighborhood. You don't want substandard amenities for the area, nor do you want to overbuild. So look at area homes; what are they selling for per square ft? Use this as a guide when deciding to upgrade finishes/fixtures.

Whatever choices you make, be sure to exercise some taste/judgement on exterior materials color. The semi-custom & spec houses in my 'hood stick out like sore thumbs, mainly because their exterior color choices are boring to bad. If you have white soffit/fascia, don't hang beige gutters, black shutters, and then put up a completely different off-white garage door. If you feel unsure about color choices, hire a design consultant or at least solicit the opinions of a few tasteful friends.
Posted by MamouTiger65
Baton Rouge, La
Member since Oct 2007
794 posts
Posted on 12/10/14 at 2:39 pm to
Sounds like or similar to a tract home. In that case your builder should have a list of optional upgrades you can choose from that conform to the neighborhood. Just pick the stuff that's important to you.

Kitchens and Master Bathrooms tend to offer the biggest bang for the buck when you look to sell.
Posted by NC_Tigah
Carolinas
Member since Sep 2003
123915 posts
Posted on 12/10/14 at 2:51 pm to
quote:

Our builder owns his own building supply company.
Right.
Strike one option.

So your negotiation success will really be based on (1) your ability to walk away, and (2) your willingness to do so.
Posted by Odinson
Asgard
Member since Apr 2014
2755 posts
Posted on 12/10/14 at 3:09 pm to
Seems more like simple spec house upgrades v/s truly custom home designs working with an actual architect. Determine what is all his standard features that he puts in all his houses then negotiate your "budget" for upgrades and amenities without increasing purchase price. Then you can decide what you want in the house during each phase.
Posted by redfish99
B.R.
Member since Aug 2007
16441 posts
Posted on 12/10/14 at 3:28 pm to
You're not negotiating, your choosing upgrades on a spec house. There should be a number next to all your options.If you choose to build a custom house then you can negotiate cost. Good luck
Posted by HoLeInOnEr05
Middle of the fairway
Member since Aug 2011
16834 posts
Posted on 12/10/14 at 4:12 pm to
It's a spec house, but we choose the floor plan and such. His standards are custom cabinets, hardwood in living area and hallways, crown molding, black ge appliances. He's firm on selling price but willing to negotiate on upgrades.
Posted by swanny297
NELA
Member since Oct 2013
2189 posts
Posted on 12/10/14 at 4:21 pm to
quote:

Builder is already putting in hardwoods, walk-in shower, and crown molding


Little late, he probably has most of your stuff except appliances already ordered if he is at this stage..you will pay a premium if he already ordered what you originally agreed to.
Posted by HoLeInOnEr05
Middle of the fairway
Member since Aug 2011
16834 posts
Posted on 12/10/14 at 4:31 pm to
We haven't picked out our hardwoods yet. We are just now putting an offer in.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37105 posts
Posted on 12/10/14 at 4:45 pm to
Nice wood blinds instead of that cheap miniblind stuff.

I guess you need to look at what is "standard" - every builder has different standard things. They are more willing to throw in upgrades for free because they want to preserve their selling price. If word gets out they are willing to cut their selling price, then no one will want to pay for that. The markup on upgrades is insane, so it's easy for him to negotiate there.
Posted by Chad504boy
4 posts
Member since Feb 2005
166264 posts
Posted on 12/10/14 at 7:39 pm to
How are u putting offer in if he's firm on price

This sounds like a disaster honestly
Posted by HoLeInOnEr05
Middle of the fairway
Member since Aug 2011
16834 posts
Posted on 12/10/14 at 8:19 pm to
We can ask for added things such as privacy fence, stainless steel appliances, granite, etc...
Posted by GFunk
Denham Springs
Member since Feb 2011
14966 posts
Posted on 12/10/14 at 8:48 pm to
Cat 6 line pulled through house. Legitimate counter depth. Not that counter mount depth short shite. Gutters installed. Landscaping specifics. Pre wire for security and surround sound. Whole house. Exterior especially.
Posted by TIGRLEE
Northeast Louisiana
Member since Nov 2009
31493 posts
Posted on 12/10/14 at 9:13 pm to
That's not true at all.

I just built a pretty big house as general contractor and things went very smooth between me and my builder.


Just get everything in writing.
He framed, formed and trimmed mine out.
I hired all rest of subs.
Posted by Golfer
Member since Nov 2005
75052 posts
Posted on 12/10/14 at 10:14 pm to
Can someone link me to the thread with the "things you wish you did when you built your house" thread?
Posted by LSUtigerME
Walker, LA
Member since Oct 2012
3796 posts
Posted on 12/10/14 at 10:30 pm to
quote:


Can someone link me to the thread with the "things you wish you did when you built your house" thread?




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