Posted on: 13 December 2018Share
Having your own home constructed can allow you to live in an area that doesn't have any homes available to your liking and can also help you build the home of your dreams. However, a custom home can also cost you more money unless you are willing to negotiate for a better deal. Also, when negotiating, ask about if there are any free upgrades that can be included.
Determine Your Budget
The first step when negotiating with a home builder is to agree on a budget. You can decide on how much you will spend on individual upgrades for the new home you're constructing. However, the builder may help you find a more budget-friendly option for a particular upgrade.
If you are building a home with a partner, make sure to settle on all decisions before you begin building your home. The last thing you want is to need to make an expensive change because you and your partner don't agree on something.
Choose Your Location Carefully
To have a good position for negotiations with custom home builders, look for an area where home sales are slow. In areas where demands are high, you'll likely be one of multiple bidders and you'll have a more difficult time negotiating with custom home builders.
Use an Agent
One of the best ways to make negotiation easier is to get an agent. Negotiate with the builder to include the use of an agent in the cost of the home. Make sure that the agent has experience with new construction. Also, do not choose an agent who is affiliated with the builder because he or she will not necessarily have your best interests in mind.
Bring Up Closing Costs
Negotiate for the builder to pay the closing costs. The closing costs can be expensive and if the builder pays the closing costs, the money goes straight into your pocket and is as valuable as a discount.
Buy Down the Interest Rate
Interest rates are low overall. However, you could have your interest rates lowered even further by requesting that the builder pay down your interest rate as part of the negotiation. This would make your monthly payment and the amount that you pay overall much lower.
You are likely to get the best deals when it is a buyer's market, since this means house sales have slowed. Yet, there is still room to negotiate so it is always worth a try.