Hi Everyone,
Yesterday we found out that our home could only occupy 40% of our land. Our land is only 554m2. which means we can only have 222m2 of living area. This doesn't include the Alfresco or Portico.
After we shaved 10m2 off the size of the house, we've made it to the 222m2 that we need. Now here is the question. How much should the building company take off the price of the house?
If the base house price worked out to be about $750 per m2, not including add ons, should the building company cut $7500 off the base price?
Thanks guys!
Andrew
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Browse Forums Building A New House Re: HELP... Price per m2 2Nov 23, 2007 10:49 am Your summary seems to be fair Andrew, but I don't know of too many building companies large or small that have been fair or accommodating when it comes to discounts...... 
It doesn't hurt to put it to them in exactly the same manor, but ask them how much they are willing to discount first and then hit them with your mathematical out come....  Gav & Vanessa Building In Melbourne (Sth East Suburbs) http://www.arkraider.blogspot.com/ Rawdon Hill Construction - Canterbury Heritage Re: HELP... Price per m2 3Nov 25, 2007 2:04 pm Quote: If the base house price worked out to be about $750 per m2, not including add ons, should the building company cut $7500 off the base price? In practice it ends up more driven off where the reduction came from rather than straight maths of % size reduction or number of m2. $750/m2 is the average for your house. Bathrooms/kitchens are more expense per m2 than bedrooms, different price per m2 upstairs or downstairs, etc. A simple example - imagine you had a 5m x 5m square room (25m2) and you made it smaller to 4m x 5m (20m2). The room is now 20% smaller, but the effort required to make the room doesn't actually reduce by all that much. Its only 1m less bricks to lay, the frame generally goes up in close to 1 piece regardless of such a small size difference, etc. Cost of materials will go down, but cost of labour will not go down nearly as much as you'd expect. I wouldn't expect in the above scenario to get a 20% discount based on 20% smaller... Having said all that, negotiate as hard as you can No harm in trying to get the biggest discount you can!Re: HELP... Price per m2 4Nov 25, 2007 2:27 pm  GriffBNEHi Everyone, After we shaved 10m2 off the size of the house, we've made it to the 222m2 that we need. Now here is the question. How much should the building company take off the price of the house? If the base house price worked out to be about $750 per m2, not including add ons, should the building company cut $7500 off the base price? Thanks guys! Andrew Hi Andrew We had a similar situation with our upstairs balcony which ended up being smaller than the original plan (due to modifications). We expected the builder to reduce the price by more than 5K but he only reduced it by 1.5K. I've never seen a company reduce the base price by a substantial amount, although they tend to increase it significantly if you are making it larger!! It always tends to work in their favour which is frustrating  Contracts do not expire. The date is the date they were supposed to reach practical completion. If they haven't that just means they might be in breach. The contract… 6 5140 They do say on their website that inner melb and mornington has a surcharge. I'm surprised its only $27k going by the advertised prices, I'm in the very early days talking… 4 2803 Wow I hadn't realised things had gotten that pricey in just a couple of years since I built, that is crazy with how much land is now costing if you aren't lucky enough to… 3 3994 |
