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Can you negotiate on a house and land package?

by Alex John
September 28, 2021
in REAL ESTATE
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Can you negotiate on a house and land package?

young man with sale board selling his house

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Buying a house and land package in Clyde north can be a more affordable option for homebuyers, especially those looking to purchase or build their first home.

A house and land package involves two contracts, one for buying the land then one for building the house. The loans can be arranged separately, but are usually bundled together. This means you know the upfront costs, which makes the process much easier and you can budget better.

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If you’re wondering if you can negotiate on the price of a house and land package, the answer is yes, but it may depend on the house and land package you’re buying.

Generally, you pay a fixed price to develop the home on the land, which means you won’t get hit with extra costs down the road, however some house and land packages may allow you to negotiate on certain costs.

When it comes to house and land packages, there are two opportunities for buyers to negotiate on the price; the land and the build.

Land price

You may be able to get a saving on your house and land package by negotiating on the price of the land.

Builders often negotiate with developers to get the best price on a piece of land, but there also may be room for you to negotiate a lower land price before buying a house and land package.

The land price is impacted by numerous factors, such as size and location. Your budget will impact what you can afford, but if you have your heart set on a specific area, such as a house and land package in Clyde north, it’s worth asking if there’s any room for negotiating. If you don’t ask, you’ll never know if you could save.

If you buy a house and land package with a fixed cost, make sure you know what is included in the cost, and what is an additional expense. This will help you budget and ensure you don’t get caught out by any surprises.

Build price

Another potential opportunity to negotiate on costs with a house and land package is with the build price.

Do your research on reputable builders and you may be able to find one that offers a better price than others. Just make sure the builder you choose is experienced and uses quality materials, as you don’t want someone who will cut corners.

Buying a house and land package allows you to choose your preferred home design. Your builder will show you design options for your new home, and each will come with different costs suitable to various budgets, so you may be able to choose lower cost options.

You can provide your budget goals with your builder upfront so they can show you appropriate design options, but if you find a design you love, there may be room to negotiate.

There will be some features included within your home design, as well as extras. Make sure you’re clear on which is which, so you understand what you’re spending money on. There may be some features that are not included in the listed price, such as fencing, driveways, landscaping, garages and carpets. You may want to see if you can negotiate on the cost of these to save where you can.

Your builder may also be able to negotiate the best rate for materials to ensure that you pay the lowest cost you can.

Even negotiating just a small discount can help you save a significant amount of money in the long term, and if you’re able to negotiate on both the build price and the land price of your house and land package in Clyde north, you may find yourself saving a nice chunk of money. This money can then be put into your budget for any unexpected costs that may arise during construction.

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Alex John

Alex John

Hi, I am Alex John, A blogger and online marketer at AsiaPosts.com.

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