Can I Negotiate Option Prices?

[AZEdC]

I will have to let the seller know what options that I want for the new home that I will have built. Are the prices for options negotiable? If so, do you have any negotiating tips?

Thanks for any advice.

Ed

[Rich]

Your best bet is to get rid of the option pricing and actually choose an item for them to put in. For instance, instead of having an allowance for appliances.. you can say I want a Viking stove (model#xxxxxxxx), a Sub-Zero refrigerator (model#TC700-1), etc. You should price these up before going into the negotiation. If you do not choose what you want in the house - the allowance either won't cover it or it'll be over what you want to spend. If it's over what you want it's more difficult to get that money back. I've even heard of some builders using the allowance prices to negotiate other change orders... goes something like this.
There is 10000 for appliances - we have a change order for 2000. We'll just take the money out of the appliance budget to cover it. Well you end up with a washer / dryer that can wash 2 pieces of clothing and a refrigerator that couldn't fit a turkey in it.
My advice, as stated above, is to get rid of the allowances and put a specification together that states exactly what you want in the home. Then there are no holes in scope. They know exactly what you want, and you know exactly what you should be getting.

[grumpydasmurf]

Something I have learned in my life: Everything is negotiable.

I prefer pricing the way Rich is recommending. It's more time consuming but more accurate. Also you can compare pricing easier if everyone is bidding the same things.