Negotiating With a Builder

Often times, the stigma that negotiating with a builder carries with it is one of being resistant and indifferent. It is really quite the opposite in most cases. Negotiating with a builder should not be looked at as a task to be avoided but rather embraced. If the home you are planning to purchase is not yet completed, there are plenty of opportunities available to negotiate or even re-negotiate a variety of areas of the home.

Since it is a new home, almost everything is negotiable. You just have to be willing to put in the extra time and effort. The house is in the process of being built and as its buyer, you do have a say on some things, not all things, but there is always room compromise. Most builders are willing to work with people that want to modify and improve upon the already set plans. There is definite flexibility on the types of flooring, countertops, colors the interior, recessed ceilings, cabinets, and other areas of the interior that can be altered to accommodate the needs of the buyer. This also may pertain to the regions of the exterior of the home.

The builder typically has a set of plans that has been clearly defined and accepted by the local building department. These plans have also been approved by the lenders whom are financing the project with a pre-negotiated mortgage. While some of them may be apprehensive about straying from those plans, you will find that most of them generally are willing to work with a buyer if he/she wishes to make a few minor changes. But on the same token, major changes that are too extravagant or outrageous many be denied.

Before approaching the builder about any alterations, additions, or other changes, it is vital that you make sure you know any and all contingencies within the agreement. Also, be aware of the estimated date of completion for the home. More time is needed in order when changes are to be made and this leads to time setbacks, delays, and more money being added to the initial purchase price. In addition, you also have to allow time for any other necessary permits that need to be obtained. For these reasons, it is a good idea to make a list of changes and present them to the builder as soon as possible.

Also, prior to suggesting any changes and engaging in the whole negotiating process, you as the buyer should also view the model homes and make sure you are well aware of any upgrades that are available. Builders often have their own list of options and upgrades to offer. Make sure you know the specifics involved with both the quality and the price of each upgrade.

Also, be wary of any builder steering you in the direction of a specific design center too intensely. They may be directing you to place that may not have the variety, colors, patterns, styles, or qualities that you are looking for. And chances คอนโด อารี are that their prices are probably two or three times higher than many other design companies. Many times buyers are not fully aware of what they are getting themselves into by making "just a few little changes" and are shocked when they see the end result.

As far as the agreement is concerned, as new changes and alterations are not mentioned on the original agreement, make sure that all changes that are negotiated are documented. A written agreement with clearly defined changes, costs, and estimated dates of completion should be signed by the builder is very necessary and is especially helpful and useful if any problematic situations and/or misunderstandings were to arise in the future. A verbal agreement should never be acceptable. In addition, if some of the work is going to be sub-contracted to other builders, they should sign lien waivers and making a copy for your own records. The warranty the builder has to offer should also be included within the agreement.

Another factor to consider is payment. Payment in full right up front should be avoided if possible. There is always the risk that the deal may not go through and money spent on materials and labor would then be lost. Paying only a portion of the total amount to the builder gives you more control over the whole situation. In doing so, you allow the builder to have a vested interest because he/she now has to face the possibility of potentially losing money on the job if the deal does not go through for any reason. You also may want to consider progress payments where any draw checks are signed by both you and the bank. This ensures that the builder does not receive money until the work has been completed.

The key to negotiating with the builder is to not be afraid to do so. It is your "dream" house that you are looking to buy, after all. It should be built to fit your specific needs and standards and you should not have to settle for anything less. Granted, there will obviously be the need for compromise, but finding a middle ground is far better than not getting anything at all.