Builder Shortage Solutions: How to Find and Negotiate with Builders in a Competitive Market
Are you dreaming of building a custom home but finding it tough to track down a reputable builder? You’re not alone! In many areas, the demand for skilled builders far outweighs the supply. This can make it challenging to even get your foot in the door, let alone negotiate a price that fits your budget.
I get it this can be frustrating but don’t worry, we’re here to help. This guide will equip you with some ideas and tips you need to find the right builder for your project and negotiate effectively, even in a competitive market.
Ready to turn your dream home into a reality? Let’s get started!
1. Widen Your Search and Be Patient
Think Outside the Box:
- Expand your geographical search: Consider builders in neighboring towns or slightly further afield. A little extra commute for them might mean landing a fantastic builder for you.
- Look beyond the biggest names: Smaller building firms or independent contractors might have more availability and be eager to take on your project.
- Consider a consulting service– These companies work with numerous contractors repeatedly and will likely get a response quicker as there is repeat business happening between those companies. Here are a few: Buildzoom, Houzz, Angi and Bark
Play the Waiting Game:
- Plan ahead: Start your search early, even if your build is months away. Many reputable builders are booked well in advance.
- Join waitlists: Don’t hesitate to get on a builder’s waitlist. Projects sometimes change, and you might get lucky sooner than you think. It is not uncommon to see a delay in permits being issued or financing issues that prevent a start of a project. That will create availability for your project!
2. Overcome the Builder Shortage with Strategic Networking
Networking is your secret weapon in a competitive market. Here’s how to tap into the power of connections:
- Reach out to your network: Ask friends, family, colleagues, and even your real estate agent for builder recommendations.
- Attend local events: Home shows, industry conferences, and community gatherings are prime opportunities to meet builders and learn about their availability.
- Engage in online communities: Join local forums, Facebook groups, and Nextdoor to gather insights and recommendations from homeowners who have recently built homes.
3. Make Your Project Irresistible: How to Attract Builders
In a builder shortage, you need to make your project stand out from the crowd. Here’s how to capture a builder’s attention:
- Present a clear and compelling vision: Provide detailed plans, sketches, and inspiration images to showcase your dream home.
- Highlight what makes your project unique: Is it a straightforward build? Do you have flexible timelines? Emphasize the aspects that make your project attractive to a busy builder.
- Show you’re serious and prepared: Get pre-approved for financing and demonstrate that you have a realistic budget.
Need help navigating the financing process? Our Single Loan Construction Program at Waterstone Mortgage can help you get pre-approved and show builders you’re ready to build!
4. Negotiating Builder Prices in a Competitive Market
Even with a builder shortage, negotiation is still possible. Here are some tips to secure a fair price:
- Focus on value, not just the bottom line: Consider the builder’s reputation, experience, communication style, and warranty offerings.
- Negotiate on inclusions and upgrades: Instead of haggling on the overall price, explore options for including desired features within your budget.
- Be prepared to walk away (if necessary): Having alternative builders in mind gives you leverage during negotiations.
- Additional research: Here is another great blog on this topic Cracking the Code – Home Building Resources
5. Building a Strong Foundation: The Builder-Client Relationship
A positive and collaborative relationship with your builder is crucial for a successful project. Here’s how to foster a strong partnership:
- Establish clear communication channels: Discuss preferred methods of contact and set expectations for responsiveness.
- Maintain open and honest dialogue: Address concerns promptly and professionally.
- Value their expertise: Be receptive to their suggestions and advice, while also clearly communicating your needs and preferences.
Conclusion
Finding and negotiating with builders in a competitive market requires patience, persistence, and a strategic approach. By widening your search, networking effectively, presenting a compelling project proposal, and mastering the art of negotiation, you can increase your chances of securing the right builder for your dream home.
Ready to take the first step towards building your dream home? Contact us today to discuss your financing options and get pre-approved for a construction loan. We’re here to guide you every step of the way!
