Browse Forums Building A New House 1 Jan 13, 2013 4:15 pm Hi all i am about to sign a tender contract to build a house, the question is: how much discount do we normally get , 3k, 5K, 10K....before we sign a contract to build a house ? let say my tender is 300K, should i ask for 5K discount ? and what is the reasonable number should i ask for a discount before i sign a tender contract. thanks Tony Re: how much discount we normally get before signing the ten 3Jan 13, 2013 7:20 pm Yeah, I think you will find the building industry one of those tough to haggle and normally never discount. We asked for a few items as finalising our contract. We approved some upgrades and paid for those and then some we asked if they could include. things like additional piering allowance had 100lm included and asked them to up it to 150lm (thankfully we did as we used it and at $90 p/m that saved us $4.5k) We also wanted to reduce our tender costs so we removed the aircon, main tiling and carpets. We have saved this ourselves through the build and have managed to get this cheaper or better product for the same price. Other than that, we didn't ask for a discount as such, if there is something you can't afford and would really like, then perhaps see if they can include it at no charge. After signing our tender, they actually further honoured a few items at no charge for us which was nice. Blog: http://cbcbuild.blogspot.com.au/ Building Thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=62155 Re: how much discount we normally get before signing the ten 4Jan 13, 2013 7:37 pm I pushed for and got a small discount 2 Re: how much discount we normally get before signing the ten 6Jan 13, 2013 9:22 pm Depends who you are dealing with I think. If it is a sales person in a large company, chances are they haven't got much flexibility (unless maybe it eats into their commission?). We dealt with a small builder and negotiated direct with the owners (who are also ex-carpenters). Like mentioned above, we didn't get a discount as such, but we did ask for a few things to be thrown in which worked. (Especially helps if you can work out where your builder has flexibility. Some big companies might have purchasing power and therefore can offer cheap products. With ours they employ some of their own staff, so their time is flexible so we got things like niches and AV cabling installation (we bought the cables), and bricking of patio bench thrown in as it didn't cost them much, but I know other companies who have sub-contractors charge a fortune for some of those things). Long way of saying discounts are possible - but may just come in different forms. SunshineT's Build: viewtopic.php?f=31&t=34585 Designs start: 4/12/09 DA: 5/7/11 Demo: 22/12/11 Slab: 24/2/12 Keys: 31/8/12 Re: how much discount we normally get before signing the ten 7Jan 13, 2013 9:35 pm I tried when I was dealing with a few different builders (all large WA companies) prior to signing to get a discount. None were really willing to budge on prices. One sales rep offered to take $1000 off from their commission, and another was some how able to suddenly reduce the quote of an extra I had asked for by $2000 when I told them I'd sign straight away if they could take $5000 off the pre contract price. My Thread: viewtopic.php?f=31&t=62001 Re: how much discount we normally get before signing the ten 8Jan 14, 2013 6:59 am We were tossing up between two builders and both knew this and were happy to throw in their upgrade packages for free along with other extras if we signed with them by the end of the month (1 week away) but we didn't get any discounts off the base price per se. Re: how much discount we normally get before signing the ten 9Jan 14, 2013 2:27 pm Wow, shocked at the lack of discounts. The builder is making a minimum of 20%, so on $400,000, they are making $80k. If you went to a shop to buy a TV for $2000, I am sure you expect a discount, but when you buy a house, you are willing to pay full price? Never pay full price. I dealt with 3 builders, 2 of which I got tenders from, one that offered me a $13,000 discount if I was to go to tender. The first offered me $13,000 off, on a price of $420,000. The second builder offered me $4500 discount on a tender of $443,000. This was due entirely to their incompetence and taking 4 weeks longer to put the tender together then they said it would, which was then missing major changes I requested. The builder I went with offered me $6000 off the tender, as well a package which they price at $2500 which has a retail value of $13,000 and the one that got me over the line was glass balustrading worth $9,900 for $4000, so a saving of $5,900, an option I really wanted, but didn’t want to pay that much for it. Total saving out of pocket was $14,400. Here are some tips, I am sure others will be able to add to this: Although it may likely cost you about $1000 for a second tender, you should be able to use it to negotiate a better price. It also allows you to compare identical items to see if some are overpriced and can be negotiated. Be prepared to sign the tender when it is presented should the builder be able to meet your price. Say something like “If you can get the price to X I will sign now.” Or “My budget is X and I really can’t go over it, if you can meet or get as close to that as possible and I will sign today” Don’t be scared to ask for a discount, don’t ask, don’t receive. If there is an upgrade you really want but it is priced out of your budget, ask for it to be included and you will go ahead if it is. Getting extras is usually easier, but you can definitely get cash off as well as extras. It is easier to negotiate on price if the tender is presented at the head office of the builder so the tender presenter can OK it with a manger then and there. So given the choice of the tender being presented at the display centre or head office go for head office. Re: how much discount we normally get before signing the ten 10Jan 15, 2013 5:15 am Any builder that is in a position to offer a client a discount has loaded that tender to the max or is desperate for the work. The builders I work with operate on a totally transparent level, basically charging cost plus 25% and with any luck make 10% out of it if wholesale prices don't rise too much during the construction period. The builders most of you guys are dealing with, aren't real. They are basically salespeople, professional bullshit-artists who will tell you whatever you want to hear to get you to sign then go back to actual builder who has to claw back profit through variations or screwing over trades and suppliers. The building industry is now a fast food industry. Seriously, some of theses guys should erect arches out the front. I thought this would be a popular question but I haven't been able to find any similar posts. Perhaps I'm wording my searches wrong? When you have car insurance and the… 0 6679 Hey. Head to a metal and decide on which profile you will use first. 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