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Negotiations are an important part of the complex process of purchasing real estate, especially when planning a unique custom built home. Most builders have fixed costs established for the construction of new residences. There are factors that can, if properly handled by the homeowner, directly affect overall costs in a way that minimizes expenses along the way. Negotiating Tips The following are some helpful tips for negotiating the best deals with contractors and developers. • Research Contractors – Be sure to perform a thorough research of potential contractors available for the job. Don’t meet with a contractor until some research has been done as to important factors in the type of house design, including size, style and location. It is always a good idea for owners to search the internet to determine a standard base price on items they want to include in their new house.
• Practice Self-Control - Keep cool while working on contract terms. Remaining calm during negotiations is a very helpful tool to keep in mind for both the owner and the contractor. Keeping emotions under control during the process can result in a better result from the negotiations process.
• Be Realistic - Set limits and make a realistic offer. Owners should have a clear understanding of the things they want for their house as well as a realistic price to offer the contractor. This makes it easier for both parties to reach an agreement.
• Negotiate Extras Not Money – It may be better to bargain for more or better additional items. Most of the time, construction prices for a new house are pretty standard and non-negotiable as it involves material cost among other expenditures. Instead of arguing this aspect, owners can ask for other items like upgrading carpets or lighting. Helpful Hints This type of transaction involves terms that bind the buyer with the contractor. There are contractors that provide a list of homework for their potential clients. This list is a collection of important and specific information about some features that will directly affect the total price paid for the residential construction. This list is a good source to understand where the costs come from and can help in doing research about custom built homes. • Get Complete Estimates - Owners should get estimates from all contractors being considered. These estimates should consist of all features that make up the home building process including costs for labor, materials, permits, and licensing. If there are any unclear items, be sure to ask the contractor about those items.
• Purchase All Materials – Although this is certainly the exception rather than the rule, it is possible for a homeowner to ask the contractor if they can buy all of the materials required for constructing the residence. It does give cost control to the homeowner; however, unless they are very experienced in this line of work, the constructor may be better able to handle that more efficiently and economically.
• Negotiate Terms or Start Date - Owners can negotiate extending the terms of the contract or changing the start date of the project, if it would prove beneficial to either the homeowner or the contractor. Homeowners should think carefully about choosing to do this and should only consider such a decision if they are working with a home builder who is very well-established.
• Offer to Provide Leads or Advertise on Lot - Builders need to promote their services and take on new projects. Clients can stipulate in the contract terms that they will provide new leads or offer to advertise the services of that contractor at the building site. Actively participating in the completion of the construction of a custom built home is important in order to save money and wind up with the desired result. Having more-than-average knowledge about construction negotiations can save time, effort and money and negotiate an owner into their ideal custom built home! C. Michael Hunter is an expert in custom home building. To find out more about Home Builders College Station, go to the main website at: http://www.cgmhomes.com/.
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