I am very close to finalizing a desing and costs with a builder for my home…was wondering if it is possible to negotiate with the builder on the contract price…any tips appreciated..is it better to ask them to lower their contract price or ask them to put in some extras at no cost.
cheersyou can do anything! what are your negotiation skills like?
The main thing is to know the market, what are other builders charging?
If your builder is already on the low side and you try and screw them down too much, they might resent you and not do the job properly.We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
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phone 0412 437 582I wouldn’t bother trying to talk the builder down on his price or get extras for nothing.There is no such thing as a free lunch,and you will pay for it in any contract variations throughout the job.Remember that it is a two way street.I doubt you would work for less if your boss asked you to,and neither should the builder be expected to.
Tools
Well i would work for less if it meant that i kept the job as long as the reduction was within my reach……..and it wouldn’t necessarily mean that i would not produce good quality of work…..its like in IT contracting..you initially want $x but have to settle for $x-y…..i presume it is the same everywhere…the only problem is it is difficult to understand what the builders margin are….for a house of say $300K how much do you think the builder will be making ?
I think the most important thing is to make a win-win situation, find out what builder wants and if you can refer more business to him/her in the future, that may enhance your chance of price negotiations and create a lifelong relationship for your future property investment portfolio.
Cheers
JohnDreaming about financial freedom is all about taking some action TODAY. I am building my own successfully PART TIME business whilst still working in a Bank. If you want to know more, PM or email ME.
As Dr X said, know your market! If there is a labour shortage as in WA, your chances are pretty low to get it cheaper. It will be all to hard when a builder can basically pick and choose what jobs they want.
I would suggest you could ask if thats their best price as you are getting a few quotes, but ultimately you get what you pay for. They will have to cut their margin to drop the price which can lead to less time spent on your job.
To check though, definitely get a few quotes and make sure you compare like for like.
What does it matter what the builders margin is, if you don’t like his quote go and get another one. he is the one that takes all the risks re insurances work cover etc, would you tell people how much you make. Look at this way he is doing you a favour by building the home for you. simple really if you are not happy don’t sign.
Robo
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