Thursday, July 24, 2008

Let's make a deal

Decide what amount your are comfortable with paying for the lot and home, and discuss with the builder if it even makes sense to continue down this path. Get the proposed price for the home that was planned for you.

Sit on it a little bit. Let them call you next. You could be shopping for other builders, coparing prices, other lots, etc. Tell them you need to be at $x, not the price you have in front of you.

Ask what their profit margin will be on this build. I think some builders (production builers - lower quality) might be around a few percent. High end custom builders I'm guessing can be upwards of 15%. Hopefully they share this with you, and you can decide if it is fair.

Now that you have a price, you can begin to get creative with the layout, and start to think about allowances you might need, and credits you'll want to take.

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