Build my house part II - How much discount can I get from builder?

[vtec96]

Hi Guys,

So I asked about buying the show home V.S build a show home.

Now, I decided to build a show home on the better lot location :)

Here is my next question....
How much discount can I get?

The builder want $720K to build the house but the show home was asking $680K only!

Well...the lot is $12K more expensive than the show home lot and I want to built a 24X26 garage..

How much should I offer?
10% off possible?

Thanks a lot:clap: :clap:

[03ozwhip]

why not, its worth a shot, if they say no, theyl counter offer and then you can counter offer again. thats what i did and it worked for me :dunno:

[Kloubek]

Highly doubt you will get 10%, but as 03ozwhip says, it doesn't hurt to ask. My builder (Centrex) told me flat out there was zero room for negotiation. And in speaking with my neighbors, they too didn't get any off.

[max_boost]

I would just ask 89coupe to go and do all the negotiations for you. Don't even bother with Jordan, just go straight to 89coupe. He can get you the best deal. :thumbsup:

(I'm just kidding, don't do that and ignore this advice)

[lint]

new homes are going up by at least 10% this year, so the price should be $748K to build that house + cost of the better lot and bigger garage. You should jump on that deal, it's already $28K under valued!

[89coupe]

Originally posted by vtec96
Hi Guys,

So I asked about buying the show home V.S build a show home.

Now, I decided to build a show home on the better lot location :)

Here is my next question....
How much discount can I get?

The builder want $720K to build the house but the show home was asking $680K only!

Well...the lot is $12K more expensive than the show home lot and I want to built a 24X26 garage..

How much should I offer?
10% off possible?

Thanks a lot:clap: :clap:

Who is the builder?

[vtec96]

Originally posted by 89coupe


Who is the builder?

Touchwood Investment.

It's a small builder so I don't think I can too much off ...

[kaput]

.

[masoncgy]

You can't negotiate a discount on a house that doesn't exist. That's not how it works. You can look into what sort of incentives are being offered by the builder such as upgrade inclusions, but you won't be able to negotiate the price of the lot & house.

If it's a spec or show home, you can put in offers for consideration given it's already constructed and the builder will have the margin available to sell below list while taking a healthy profit.

If it's just a piece of dirt, good luck. It's carrying costs are next to nothing.

[benyl]

I got 2.5% off in November. But that was the low point. Prices went up in December and January.

[ianmcc]

Originally posted by masoncgy
You can't negotiate a discount on a house that doesn't exist. That's not how it works. You can look into what sort of incentives are being offered by the builder such as upgrade inclusions, but you won't be able to negotiate the price of the lot & house.

If it's a spec or show home, you can put in offers for consideration given it's already constructed and the builder will have the margin available to sell below list while taking a healthy profit.

If it's just a piece of dirt, good luck. It's carrying costs are next to nothing.

When we built a new home we were told the price is what it is. The negotiating room was what masoncgy says-upgrades, incentives, that kind of thing. We got something like $10K in free upgrades plus a free retaining wall.

[cet]

I built with Touchwood as well.

[benyl]

Haha, Aspen is going to be like Kincora. Full of Beyond peeps.

[vtec96]

Originally posted by cet
I built with Touchwood as well.

Any review? :bigpimp:

[vtec96]

Originally posted by benyl
Haha, Aspen is going to be like Kincora. Full of Beyond peeps.

Who else is going Aspen?:thumbsup:

I couldn't find any nice lots with Albi or Morrison...
These two builders have more free upgrades than touchwood!

[cet]

Umm... definatly some things to be aware of.

Have you built before with a different company or is this your first time? I took posession of my house in December 2007 and at that time the house building climate was quite different (Aspen Stone Phase 3 had just started and we were still around the boom time) I chose them because they had the lot I wanted (backing on to a grove of aspen trees).

Overall the experience was ok. Who are you dealing with?

[ddduke]

Originally posted by masoncgy
You can't negotiate a discount on a house that doesn't exist.

This isn't true. When we built with cardel in 2004 the list price was $269000 and after a few weeks of negotiations we ended up getting the house for $212000. We also followed the build from ground up and make sure everything on the house was done perfect, showed up to the site daily to check up on it.

I say try to negotiate like crazy. If it's a smaller builder then they need your business more then one of the majors and generally most smaller companies are more willing to negotiate.

[benyl]

Originally posted by vtec96


Who else is going Aspen?:thumbsup:

I couldn't find any nice lots with Albi or Morrison...
These two builders have more free upgrades than touchwood!

Did you try Shane, Prominent or Trico? Or are all the ridge lots sold now?

I am building in Aspenshire Estates, 89coupe is building in Aspenshire and I think there is someone else in Aspen Hills that built with Albi.

[Redlyne_mr2]

Shox is in Aspen Estates, I'm in Aspen Hills.
Beyond meet at the Red Water in Aspen Landing.

[rizfarmer]

I bought a Cedarglen house just under a year ago and was able to negotiate about 2% off the price after being told a few times "there is no room to negotiate on the price"

If you had involved a realator at the beginning of your buying process the builder would have had to compensate your realtor So you definitely do have some leverage to negotiate price

Any other beyonders in Valleyview Estates??

[C_Dave45]

Originally posted by rizfarmer
I bought a Cedarglen house just under a year ago and was able to negotiate about 2% off the price after being told a few times "there is no room to negotiate on the price"

If you had involved a realator at the beginning of your buying process the builder would have had to compensate your realtor So you definitely do have some leverage to negotiate price

Any other beyonders in Valleyview Estates??

Don't live there, but a good chance I did the tile in your house. I did about a dozen CG homes in there.

[Oz-]

Originally posted by benyl


...beyond meet in Aspen...

Lots still to be developed on the east side of 85th Street.

Springbank Land Co. still needs to develop / release the rest of Aspen Woods Estates -- that entire area behind Safeway.

There is another development by Quinn Corp that is going to be called Aspen Summit which is around 77st and 13th ave, the access to the 85th st from 13th ave will be cut off and need to go through that new area. 13th ave will go to an Aspen Summit Blvd and also connect to Strathcona Drive. Phase 2 in the smaller lot area looks to be 50% bought by a builder(s). I suspect that you will start to see showhomes there in early summer.

That entire Aspen area is going to be a gong show in 5 years for local traffic. Hopefully, the West LRT will relieve some pressure off Bow and 17th for DT access.

[cet]

Originally posted by benyl


I am building in Aspenshire Estates, 89coupe is building in Aspenshire and I think there is someone else in Aspen Hills that built with Albi.


I'm in Aspen Stone just south of you guys.

[89coupe]

Originally posted by benyl


Did you try Shane, Prominent or Trico? Or are all the ridge lots sold now?

I am building in Aspenshire Estates, 89coupe is building in Aspenshire and I think there is someone else in Aspen Hills that built with Albi.


Originally posted by cet



I'm in Aspen Stone just south of you guys.

Redline has a home in Aspen Stone Estates.

I have another buddy in Wentworth & another buddy in Cougar Ridge.

Fergus & Bix is the watering hole. www.fergusandbix.com

[89coupe]

Originally posted by vtec96


Who else is going Aspen?:thumbsup:

I couldn't find any nice lots with Albi or Morrison...
These two builders have more free upgrades than touchwood!

A friend of ours is building with http://www.homesbyus.ca/communities.htm

If you want a big lot you are looking at a million dollars plus to build in Aspen.

It's funny though, I know a few people with big lots, & big ass decks but in the end, they are never out there...lol.

I think the most used space in any home is the kitchen. Seems like more people hang out in the kitchen then any other spot in the home.

We designed our entire home/theme off the kitchen. It's the focal point for us.

[Jonrox]

Your best bet is to negotiate a cost-plus contract (i.e. cost plus 10%) and you are more likely to get this with a smaller builder. Do this and you won't be subject to the insane margins builders charge on upgrades.

I built this way and it went beautifully. I have copies of every single invoice that went into building my home - from the $20 for a door handle to the many thousands for framing. Nothing is an upgrade this way, you just choose what you want and the builder gets their margin. My builder told me to buy some stuff on my own as well (appliances, window coverings, speakers/theatre gear).

He would present me with a few quotes on some of the big ticket invoices, give me some advice on which trades he'd used before, and let me choose who to go with. He was constantly on site and held his guys to the highest standards (eg. he threatened to kick the siding guys off the job for leaving some empty Timmy's cups on site one day).

This is the only way to know you're getting the best deal possible.

[89coupe]

Originally posted by Jonrox
Your best bet is to negotiate a cost-plus contract (i.e. cost plus 10%) and you are more likely to get this with a smaller builder. Do this and you won't be subject to the insane margins builders charge on upgrades.

I built this way and it went beautifully. I have copies of every single invoice that went into building my home - from the $20 for a door handle to the many thousands for framing. Nothing is an upgrade this way, you just choose what you want and the builder gets their margin. My builder told me to buy some stuff on my own as well (appliances, window coverings, speakers/theatre gear).

He would present me with a few quotes on some of the big ticket invoices, give me some advice on which trades he'd used before, and let me choose who to go with. He was constantly on site and held his guys to the highest standards (eg. he threatened to kick the siding guys off the job for leaving some empty Timmy's cups on site one day).

This is the only way to know you're getting the best deal possible.

That is great, but where in Calgary can you build using a custom home builder without having to buy an old home first to tear down and rebuild?

[lint]

Originally posted by 89coupe
That is great, but where in Calgary can you build using a custom home builder without having to buy an old home first to tear down and rebuild?

Most custom home builders have their own inventory of lots. http://www.canterracustomhomes.com/communities.shtml Canterra is building in Aspen Glen

just google "calgary custom homes" for a huge list of builders

[benyl]

Many of the houses are between 1.2 - 2 in that area.

[lint]

Originally posted by benyl
Many of the houses are between 1.2 - 2 in that area.

he's 89coupe. And that's just one example. custom builders have lots all over, including the inner city as well. you just need to do the legwork and find a builder with a lot in an area you're looking for.

[89coupe]

Originally posted by lint


he's 89coupe. And that's just one example. custom builders have lots all over, including the inner city as well. you just need to do the legwork and find a builder with a lot in an area you're looking for.

The whole point behind his comment about a small custom builder was to save money. $1M plus is not exactly money saving territory.

[lint]

Originally posted by 89coupe
The whole point behind his comment about a small custom builder was to save money. $1M plus is not exactly money saving territory.
and the whole point of my comment was to answer your question. let me refresh

Originally posted by 89coupe
That is great, but where in Calgary can you build using a custom home builder without having to buy an old home first to tear down and rebuild?

[89coupe]

Originally posted by lint

and the whole point of my comment was to answer your question. let me refresh


Well next time try and follow the conversation, your point was, pointless.

[lint]

Originally posted by 89coupe
Well next time try and follow the conversation, your point was, pointless.
No, it just wasn't the answer you wanted to hear. Your question was:

Originally posted by 89coupe
but where in Calgary can you build using a custom home builder without having to buy an old home first to tear down and rebuild?With the usual 89coupe assumption that if you hadn't thought of it or considered it, it must no exist. And no one would do anything that isn't what 89coupe does.

The answer again is: you can find custom builders all over Calgary, some newer communities, lots of older communities, who have already bought up older houses for the lots and knocked them down. You as a home buyer, don't have to buy the old home first. You just find a builder with a lot in a community you're interested in and work with them to build your house. It's not that hard a concept.

You just never bothered to look, because you're getting such a great deal from the builder on all your upgrades.

And it must be nitrogen

[89coupe]

Originally posted by lint

No, it just wasn't the answer you wanted to hear. Your question was:
With the usual 89coupe assumption that if you hadn't thought of it or considered it, it must no exist. And no one would do anything that isn't what 89coupe does.

The answer again is: you can find custom builders all over Calgary, some newer communities, lots of older communities, who have already bought up older houses for the lots and knocked them down. You as a home buyer, don't have to buy the old home first. You just find a builder with a lot in a community you're interested in and work with them to build your house. It's not that hard a concept.

You just never bothered to look, because you're getting such a great deal from the builder on all your upgrades.

And it must be nitrogen

I've let go of the rope...:rofl:

[89coupe]

Originally posted by vtec96
Hi Guys,

So I asked about buying the show home V.S build a show home.

Now, I decided to build a show home on the better lot location :)

Here is my next question....
How much discount can I get?

The builder want $720K to build the house but the show home was asking $680K only!

Well...the lot is $12K more expensive than the show home lot and I want to built a 24X26 garage..

How much should I offer?
10% off possible?

Thanks a lot:clap: :clap:

So did you make a deal?

[sml]

Wow didn't know so many beyonders live in Aspen area! Btw, just tryed out Thai tai at the Aspen landing mall and it's actually not bad. I mean it ain't no pho from forest lawn but it's decent enough to make me not want to drive across town for a bowl! I had the sate soup and iced coffee. Somehow I thought it was viet subs only place like the one by western high but they actually have a full menu.

[89coupe]

Albi has their showhome up for sale, its a bargain price!:thumbsup: LOL

http://www.realtor.ca/propertyDetails.aspx?propertyId=10329536&PidKey=712706622

[nickyh]

Who are they kidding at that price?

I'd rather buy some on the homes for sale in Aspen Cliff estates.

[sputnik]

Originally posted by nickyh
Who are they kidding at that price?

I'd rather buy some on the homes for sale in Aspen Cliff estates.

They have no intentions of selling at that price.

Jayman does the same thing.

They list their show homes at $100k+ over the price to build it yourself to get people into the show home and make them think that they are getting a deal compared to the price the show home is listed at.

Usually happens most when the builders are slow.

[89coupe]

Originally posted by sputnik


They have no intentions of selling at that price.

Jayman does the same thing.

They list their show homes at $100k+ over the price to build it yourself to get people into the show home and make them think that they are getting a deal compared to the price the show home is listed at.

Usually happens most when the builders are slow.

Nah, thats not the case. The showhome is closing because they have sold out the area.

You could build that home for $735,000 as you see it when I was there.

[sputnik]

Originally posted by 89coupe


Nah, thats not the case. The showhome is closing because they have sold out the area.

You could build that home for $735,000 as you see it when I was there.

So what do you figure it will sell for?

I say it will sell for well under asking.

[89coupe]

Originally posted by sputnik


So what do you figure it will sell for?

I say it will sell for well under asking.

Of course, thats insane what they are asking...lol.

My only guess is maybe they are including all the furnishings.

[masoncgy]

That house looks like it's straight out of 1985, exterior style wise. Good God, when did those awful curved battens become hip?

[Sal0]

Just bumping this thread. Anyone buy a new house recently? What kinda of upgrades or discounts were you able to negotiate?

I already have a realtor, but any info would still be helpful.