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"The Pleasure of a Cheap Price is Usually Replaced by the Pain of a Poor Product". Main Idaho Real Estate Insights
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Boise Real EstateOne discussion I have had a lot lately with people is the power of the lowest common demoninator. It seems way too often that the basis of decision making is based on the simplest factors.

For example, it is my experience that most people in the industry would rather spend $1,000 on an ad in the Idaho Statesman and expect nothing than spend 1 hour calling past clients and developing those relationships for referrals. Here is why that is so interesting- at least 60% of the business in construction and real estate is referral based! So why do people spend money chasing people they don't know when most of their business comes from referrals? It is simply easier.

So why do people search for homes based on how many bedrooms, baths and based on a price range- it is easier. Schools are becoming a much more important factor in the decision making process but how many people actually go visit the school and meet the teachers?

How many people decide they just like the builder, which is important, and just move forward? It is easier than asking tough questions. Your going to spend hundreds of thousands of dollars and you just liked the builder. Really? It's just that easy?

Just a reminder to do your homework? The benefits are compounding.

Trey Langford
Founder

 
Posted by tlangford at 3/3/2009 2:07:00 PM
Comments (5)
Re:"The Pleasure of a Cheap Price is Usually Replaced by the Pain of a Poor Product".
Trey- I think you need to remind readers the list of "tough questions"...

and answer me these please
? Should I competitively bid my project to several builders or negotiate with one builder?
? How do I analyze competitive bids on home construction projects?
? Should I insist on a fixed lump sum or is it OK to have a time and materials contract?
? Why do so many people have home construction nightmares?
? Why are there so many problems on a construction project?
? How can I minimize the problems associated with a home construction project?
? How do I avoid overruns?
? How do I avoid being taken advantage of on change orders?
? Why are so many builders and subcontractors evasive?
Posted by on 3/3/2009 11:52 AM
Re:"The Pleasure of a Cheap Price is Usually Replaced by the Pain of a Poor Product".
? Should I competitively bid my project to several builders or negotiate with one builder?

Are there even any questionable builders left? I would suggest finding one that has your same philosophies and design characteristics.

? How do I analyze competitive bids on home construction projects?

You have to compare the construction specifications list of each builder. This list tells you exactly what you are getting in your new home.

? Should I insist on a fixed lump sum or is it OK to have a time and materials contract?

Time and materials is a lot more time consuming for both the builder and homeowner. The lump sum is more efficient and this time savings is passed onto the homeowner.

? Why do so many people have home construction nightmares?

Because their builder does not have an efficient construction system in place and/or is not a great communicator.

? Why are there so many problems on a construction project?

There are actually very few. Again this comes back to the builders construction system.

? How can I minimize the problems associated with a home construction project?

Choose a builder who is highly communicative and has a proven system.

? How do I avoid overruns?

The homeowner chooses if there are overruns or not, not the builder. As long as you stick to the construction specifications then there are no overruns.

? How do I avoid being taken advantage of on change orders?

Ask past clients of the builder if they felt taken advantage of. It also comes down to finding a trustworthy builder.

? Why are so many builders and subcontractors evasive?

This is not a fair question, because most are not. Keep in mind that the days of any-joe-shmoe starting a building company is over and that these companies were weeded along time ago.
Posted by on 3/3/2009 3:19 PM
Re:"The Pleasure of a Cheap Price is Usually Replaced by the Pain of a Poor Product".
Home building is NOT a viable business/industry right now. Why are folks fooling themselves in thinking that they should keep building?
Posted by on 3/4/2009 1:37 PM
Re:"The Pleasure of a Cheap Price is Usually Replaced by the Pain of a Poor Product".
What is viable right now? Medical- they are cutting back because people cannot afford them. Technology- not at this time. Insurance- no. It all flows downhill and when the money runs out everyone loses share along the way.
Most small businesses are diversifying and adapting. You do what you have to to survive.
Trey.
Posted by tlangford on 3/4/2009 1:59 PM
Re:"The Pleasure of a Cheap Price is Usually Replaced by the Pain of a Poor Product".
Is working at Ford, GE or even MGM viable right now? What about for your dentist? The city, county state or Federal government? Food industry or soft drink company?
Sorry to go on but the statement just sent me into a tail spin.
Posted by tlangford on 3/4/2009 2:03 PM

 

Michelle Penick, Boise Idaho Real Estate Agent

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Michelle Penick

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