Negotiating new construction free upgrades

[mrpeatie]

Odd question- have you thought about simply finding a floorplan/design you like and building it as your own GC. That is probably the only way you will be able to pull all those trades out of the general construction contract. If nothing else being dependent on subs outside their control will scare off most GCs since they would not be able to keep as tight of control on the schedule & would have problems if one sub's work negatively impacted another.

[thaifood]

I would find the bare minimum of add ons and make an offer. If they dont take it, come up. Plan on making a few offers, get it done then do the add ons after you move in.

[johngolf]

My last two homes were new builds in small (120 homes) developments. There was very little room to negotiate in base price but I did cut deals on upgrades (hardwood floors, enclosed patio, upgrade padding/carpet, upgraded kitchen/bath flooring, additional cabinets, lighting, counter tops, fireplace, painted garage, extra windows, etc.) to the tune of paying about 60% of builder list price for such.

My upgrades added about 20% to the base price. I advocate doing upgrades at time of construction for price, convenience, and not adding things later when it will be costlier and messier.

[LocalHero]

From what I've seen, the builders are giving very little on new construction right now. You may get them to throw in an extra or two. On the last new construction I sold we negotiated a window blind package but that's it. The builders will often have some kind of incentive program going on which is probably mostly built into the price already. I've been talking with Pulte in Carolina Bay recently for a client and they are offering 20% off all upgrades up to a $15k max discount. It's something, but not much in the overall picture when you consider that you have to order $80k worth of upgrades to make full use of the discount. There's an inventory shortage in Charleston and they know it.

As for doing some of the work yourself, I think that's been accurately covered in earlier comments... not a chance.

Interesting idea to paint the subfloor and call it finished. I doubt that would fly but I've never seen it tested. Of course the builder would have to do the painting and they might charge you nearly as much as cheap carpet.

Your negotiating strength depends partly on how well things are selling for the builder in that neighborhood. If sales are slow, they'll be more willing to bend a little. Traditionally, late November through the Christmas/New Year holiday has been the best time to buy a house because that's when sales are already the slowest. In a hot selling neighborhood that might not be enough to bring the price down though. And typically, prices will start to rise again as spring rolls around and the buyers become active again.

I think the strategy of picking and choosing which options would be easy enough for you to add yourself is a good one.

[moneill]

Not only is inventory moving but profit margins for builders are what y'all think . There really isn't that much room to play.

[thaifood]

Having just built a house with a contractor I would not hire again, it seems to me that profit margins are there. This guy made great money off me and didn't spend a ton of time on my house.