How do you negotiate with a builder?

[GeorgeG.]

The Marley plan is nice. I'm going to check them out in the next few days.

[fordracing19]

Very nice plan Tim. Good price if the finish out is like the pics.

[War Machine]

If your builder speaks good english, then he's going to want too much

[8mpg]

Is there a preferred type of dirt? should I try to find the same type of dirt from the area?

Any clean fill dirt should be fine. If you get to pick, dont take the clay. Honestly, you may be able to negotiate a better price being you need so much. Dont forget, the dirt is what your house sits on and supports the foundation. May be worth it to pinch pennies elsewhere. Also, for foundation life, you need to keep the soil consistent as the day they poured it. Watering foundations when the pour was in a drought will cause problems just as well. Its easier to try and keep it dry with gutters and sloping the soil away from the house.

FWIW.. I went to a Drees model house today to pick up their price list for their plans and they were averaging $103/ft build on your lot. The lady said there is some negotiation room in there as well. The fiance and I love their "Marley" plan which is 4100sqft one story house. Some of their two story houses were $98ish/sqft. Their designs in my opinion were nicer than Our Country Homes (still like them) and will be cheaper.

[Denny]

If you sit on your lot and wait a year, I bet you'll get better pricing.

[GeorgeG.]

Is there a preferred type of dirt? should I try to find the same type of dirt from the area?

[8mpg]

On another note, after the visual inspection, they are saying I will need 40 loads(+/-) of dirt @ $145/load, so an additional $5800 bucks. (1 load = 10 yards). He said I could save that money if I brought in my own dirt. (yes, my wheels are turning). Then another $2000 to prep that dirt, $1600 for a soil test, then hope the test doesn't call for piers.

Who here has a truck?...I'll supply the shovels.

This is one of those things if you have time, post up looking for "free dirt" on craigslist. Put up a sign on the property. Lots of people are looking for dirt or looking to get rid of dirt. When my parents built their house 15 years ago, they got around the same amount of dirt for $10 a load which was for fuel. There was a big construction site starting about 5 miles away and they were looking to get rid of dirt.

Other option... if you have land and want a pond or a pool, it all adds up. We have 2.5 acres and plan on a 1/2-3/4 acre pond. We need 3 feet of dirt x 6000sqft (not house sqft) = 18000cuft / 27ft/yd = 667yds = about the same as you.

[GeorgeG.]

$115-$125 sounds high but it all depends on finish out. 15ft ceilings with all built ins ,Viking appliances, solid core doors, ect really go up. Septic sounds about right. My soil test and foundation engineering were done by Whitworth Engineering 4200 N. Main St. #150 Fort Worth, TX 76106.
$1440 soil test
$1620 engineering

Their $125 model was a little more than we really need. It did include 15ft ceilings, a bunch of trim and panels, and some cathedral type ceiling above the study. We'll probably go with the next level down or remove some of those features if we like the floor plan. My last house had 10ft ceilings and I thought that was plenty.

Keep me updated with pricing... Building may be in my near future as well.

Negotiating with people like Our Country Homes is harder as they have set plans and they know their costs and plan accordingly. Going with a full custom builder could be another possibility. There are different kinds of contracts that you need to research and talk with builders and what they are willing to do.

Cost plus - Cost of the building materials (some builders do materials only) and a percentage on top of that. 10% seems to be the norm to build a house. So $200k house - $20k builders fee

Fixed price - They set a total price and that is what you pay (unless you decide to go over). They send you to their suppliers and have to be within their budgets for each area such as flooring, plumbing fixtures, etc.
This is what Our Country Homes is doing. We'd get in contact with their design team and have a list of options to choose from.

Cost plus fixed fee - They charge a set amount of money to contract out the house. You pay for all building materials and labor.

Cost plus % but not to exceed - I think this is the way to go. The builder sets a percentage (say 10%) like above for his work. He guarantees the build not to go over $xxx,xxx. You both split the savings. His job is to try and save money where he can. For every $1 he saves, you split it say 70/30 where he make an extra 30% on money saved. If he can save $10k in the build, he gets $3k but you save $7k. Lots of incentive to save you and him money.

Oh, and if you go with someone like Our Country Homes...make sure you figure out overages. Most people say to budget 10-15% for overages.

Thanks for the heads up.

I'd be hesitant to take on responsibility for any part of the build/development process of a home. I'd want one stop for all warranty needs. The exception would be if I wanted something the builder could not or work not do. i.e. a safe room

all good points. I think the savings I could get for something such as finding my own septic company will probably be minimal. Plus it would eliminate getting the run-around should something go wrong.

On another note, after the visual inspection, they are saying I will need 40 loads(+/-) of dirt @ $145/load, so an additional $5800 bucks. (1 load = 10 yards). He said I could save that money if I brought in my own dirt. (yes, my wheels are turning). Then another $2000 to prep that dirt, $1600 for a soil test, then hope the test doesn't call for piers.

Who here has a truck?...I'll supply the shovels.

[ceyko]

I'd be hesitant to take on responsibility for any part of the build/development process of a home. I'd want one stop for all warranty needs. The exception would be if I wanted something the builder could not or work not do. i.e. a safe room

[8mpg]

Keep me updated with pricing... Building may be in my near future as well.

Negotiating with people like Our Country Homes is harder as they have set plans and they know their costs and plan accordingly. Going with a full custom builder could be another possibility. There are different kinds of contracts that you need to research and talk with builders and what they are willing to do.

Cost plus - Cost of the building materials (some builders do materials only) and a percentage on top of that. 10% seems to be the norm to build a house. So $200k house - $20k builders fee

Fixed price - They set a total price and that is what you pay (unless you decide to go over). They send you to their suppliers and have to be within their budgets for each area such as flooring, plumbing fixtures, etc.

Cost plus fixed fee - They charge a set amount of money to contract out the house. You pay for all building materials and labor.

Cost plus % but not to exceed - I think this is the way to go. The builder sets a percentage (say 10%) like above for his work. He guarantees the build not to go over $xxx,xxx. You both split the savings. His job is to try and save money where he can. For every $1 he saves, you split it say 70/30 where he make an extra 30% on money saved. If he can save $10k in the build, he gets $3k but you save $7k. Lots of incentive to save you and him money.

Oh, and if you go with someone like Our Country Homes...make sure you figure out overages. Most people say to budget 10-15% for overages.

[GeorgeG.]

What made you decide to build, vs buying?

We didn't see anything we liked. Actually, there was one house but our contingency offer was kicked out. Everything else was two story homes and didn't really suit our wants.

[Gasser64]

What made you decide to build, vs buying?

[fordracing19]

$115-$125 sounds high but it all depends on finish out. 15ft ceilings with all built ins ,Viking appliances, solid core doors, ect really go up. Septic sounds about right. My soil test and foundation engineering were done by Whitworth Engineering 4200 N. Main St. #150 Fort Worth, TX 76106.
$1440 soil test
$1620 engineering

[mk5.0]

Get a CMA and make an offer. Or get a realtor if you don't know what you are doing. As a buyer you don't pay the realtor anything.

[GeorgeG.]

lol, I guess my question is about timing...maybe?...no?