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Updated almost 4 years ago on . Most recent reply

User Stats

166
Posts
44
Votes
Johnny L.
  • Colorado
44
Votes |
166
Posts

Every Contractor Is Treating Me As A Client And Not As Developer

Johnny L.
  • Colorado
Posted

I'm currently trying to build my first infill spec home. I have most of my soft costs figured out and have a piece of land I'm ready to go under contract on and have vetted. I now need an estimate on the cost of what it would take to build the home I have plans for. This is where I'm having a problem.


I've contacted about 9 general contractors and home builders and they either don't respond or the bid they give me back seems to be priced as if I'm a client building a custom home (I guess I technically am). I make it clear that I'm an investor/developer looking to sell the home once it's built. The plans I have are simple. Cost-effective. I do tell them that I will be building several of these a year if this first home works out but still nothing.

I can see why they're charging me as if I'm a client building a custom home to live in because why should they lower their price just for me? They're getting plenty of business from custom clients so why take my work for less? I guess I'm struggling to find where I fit in here in terms of making a profit. Yes, ill be taking all of the financial risks but so are their custom clients.

How can I better approach these contractors to make it possible to use their services and still make a profit? Or am I just approaching the wrong ones?


Thank you all!

Most Popular Reply

Account Closed
  • Eastern Michigan
144
Votes |
81
Posts
Account Closed
  • Eastern Michigan
Replied

When you go to sell the house if an "investor" wants to buy it, despite no history of them being an investor or guarantee of future sales- are you going to lower you sales price?  It would seem to be the same logic you are using on the contractors. 

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