Virtually everything in life is negotiable! If you want to make a relationship, partnership, or project work, sometimes compromising is the best route. That said, what should you know about negotiating with a custom home builder? After all, this is one of the biggest – if not the biggest – investments you will ever make, and you will live with the results for years to come. The following tips can help you get started.
4 Tips for Negotiating with a Custom Home Builder
1. Know Where the Wiggle Room Is
When you are working with South Florida home builders to build a custom home, your key costs will include materials and issues related to code compliance. These are very difficult to negotiate, though you can “cost-engineer.” The cost is the cost. If you want to go with less expensive options, that is certainly a conversation you can have with your builder. They should be able to point you towards solutions that align with your budget.
2. Be Selective with Financing
Many home builders work with a preferred lender, and it benefits them if you choose that lender for your financing needs. This is quite often advantageous: their goal is to ensure it’s more affordable for you to work with them than to choose a competitor. That said, you should always comparison shop for the best rates and origination costs. For example, if a bank will charge 1% – 2%, likely the preferred lender will discount this rate. If you do get a better deal from an outside lender, take it to the builder and see if they will beat it.
3. Inquire About Upgrades
You can often negotiate upgrades (e.g., finishes, change order items). Ask your builder about any “extras” they offer. Some include custom elements (e.g., non-standard built-ins), after move-in upgrades at no cost, or appliance and/or landscaping packages.
4. Be Discount Savvy
See if your builder is offering any incentives or discount programs. For example, Synergy Homes’ Hero Program gives first responders, EMS, fire fighters, law enforcement, and military members a cash incentive towards closing costs. It’s worth asking.
The best way to get a great price and a beautiful home is to select a trustworthy builder who values their customers and treats them with integrity and respect. They will give you optimal deals because that is just how they do business. If you’re looking for your dream home, contact the Synergy Homes team today. We’re ready to get started!