Price to high
Q We just received the breakdown on the cost of every item along with the builder’s markup for profit, do I have any negotiating power with the builder. We really love the house design but we feel his price is too high. Is their any way of getting the builder to come down? V. Smith
A The construction market is very competitive and quality builders are in high demand. That said, most builders usually
provide an “allowance” for kitchen, bathroom, tiling etc. For example, if there is $10,000 allowance for kitchen and the
homeowner chooses a kitchen that costs more, the homeowner will need to pay the difference. If the kitchen selected costs less, the money is reimbursed to the homeowner. During negotiations, visit the workshops of the designated contractors and determine
whether you can work within the llowances.
Some builders give the homeowner a “homework list” that details what types of fixtures and appliances they will need to decide upon as a guideline, a starting point for their research and decisionmaking
you can negotiate hard on these prices, the builder may give in for a lower profit margin or consider none essential features
and fittings that can be added at a later stage.
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