‘‘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 allowances.
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.