The True Benefits of Research... And How To Do It!

Not wanting to sound too long in the tooth here, I’ve likely worked with over a thousand couples over the years, planning and building custom homes.

Of course, every one was different, but there were some common denominators that either paid off in benefits or added to stress levels.

BENEFITS

People who do their research beforehand always benefit when negotiating with a builder. Simple things like overall size and design — is it going to be a two-story or a bungalow? — really help the builder focus on what he or she can offer.

Here’s a useful exercise: do a quick calculation of cost-per-square-foot on advertised homes, comparing different styles and sizes. You will soon learn the trends and see the big impact that style and size have on the base price. Very large bungalows are much less per square-foot than their small counterparts, for example. Your builder can explain why, but if you start off with the basic knowledge it will help you out in the end.

Once you have a size and design in mind, it’s time to have draft floor plans drawn up. Your builder can look after this for you, or you can hire your own drafting service to do this essential part of the negotiations.

The benefit to hiring a drafting service is that you control the process. The cost, in reality, is usually around $500. (If you can’t find a drafting service, or one that will work with you, get in touch with our office and we can refer you to a couple.)

Remember that first exercise? Now take that same process and focus on ads for YOUR size of home and YOUR style. Make sure you are comparing only builders and models that closely resemble what you are looking for. Make a comparison of square-footage costs (base price only, no land, no upgrades) for as many builders and models as you can find.

Pull information from Parade of Homes magazines, the Saturday paper, the Real Estate News, and any other source you can find. Phone listed representatives for each builder and ask for comparison pricing. This is all ADDING KNOWLEDGE and you will be well equipped when you finally sit with a builder to negotiate a deal.

COSTS

The cost of NOT doing the research will be all of the following and more:

1. The builder will be able to dictate price and you won’t have anything to compare.
2. The builder will be able to dictate design and can steer you toward designs that the he or she is most comfortable with.
3. You won’t necessarily get the home of your dreams.

Now, there is a lot more to this process than what I’m explaining. But my point is that the information is available to you — for free. If you take the time to dig up that information and learn to work with it, you will feel more in control and your stress levels will be a little lower. You may also save a lot of money in the process — and be well paid for the time you spend.