"This quote is overcharging you by 3 million yen"—The one thing a site supervisor says you should never tell a home builder

Is your dream home really priced fairly?

"I've finally decided to build my dream home."

From the moment you make that decision, many people start losing money without even realizing it.

I have been involved in dozens of new construction projects every year for over 10 years as a site supervisor for wooden houses. I also hold licenses as a first-class architect and a real estate notary.

Based on that experience, I will say this clearly.

**There is always "negotiable cost" in a housing quote. And many homeowners sign the contract without knowing that.**

Today, I will tell you everything about "how to read a quote" that no one in the industry has ever told you.

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## What you should know first: The profit structure of housing companies

Do you know how housing companies make their profits?

Simply put, it's like this.

```
Amount paid by the homeowner
　└ Housing company profit (gross margin 20-35%)
　└ Payments to subcontractors and craftsmen
　└ Material costs
```

**The average gross margin for major house manufacturers is said to be 25-35%.**

For a 30 million yen house, 7.5 to 10.5 million yen is the housing company's profit.

I'm not saying this is bad. It's natural for a business, and it's also the price paid for branding, warranties, and after-sales service.

However, there can be a difference of several million yen in the final payment amount depending on whether you negotiate knowing this fact or sign as told without knowing it.

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## What is the "one thing you should never say"?

Let's get to the main point.

There is one thing that people who are about to build a house accidentally say to the salesperson that drives up costs the most.

It is—

> **"I'll pay any budget."**

The phrasing varies from person to person. "I want my wife to choose what she likes," "I just want the best," "I don't really care about the budget limit"... it's all the same.

The moment they hear this, the salesperson is doing a victory pose in their heart.

**Why? Because housing quotes can be "inflated" to match the budget.**

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## The top 5 "items prone to inflation" that I have seen as a site supervisor

Based on my experience of looking at hundreds of quotes on-site, I will list the items where there is particularly large room for negotiation.

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### 1st place: Miscellaneous expenses/Site management fees (The most important to watch out for)

"Miscellaneous expenses" or "site management fees" quietly written at the end of the quote.

**The market rate is 3-8% of construction costs, but some companies add 10-15%.**

For a 30 million yen construction project, a 5% difference is a 1.5 million yen issue.

Just asking, "Could you tell me the breakdown of the miscellaneous expenses?" often opens the door to negotiation. Be careful with companies that cannot answer.

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### 2nd place: Exterior construction (A trap often left for later)

The quote for the building itself often does not include exterior work (garden, parking lot, fences, etc.).

**If you think, "I'll do the exterior later," you will be billed an additional 3 to 5 million yen after the handover.**

Always have the exterior quoted at the same time as the building and compare the total amount.

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### 3rd place: Lighting, curtains, and air conditioning

The list prices of housing companies are often set close to the manufacturer's suggested retail price.

**If you use "owner-supplied" items, where you buy equivalent products yourself and have them installed, you can save 200,000 to 500,000 yen just on lighting in some cases.**

However, be sure to check the installation costs and warranty handling.

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### 4th place: Ground improvement work

This becomes necessary depending on the results of the ground survey, but **even if you are told "ground improvement is necessary," the cost varies greatly depending on the construction method.**

800,000 to 1.5 million yen for general small-diameter steel pipe piles. 200,000 to 500,000 yen for surface improvement.

If it is determined that improvement is necessary, always ask, "Please tell me the multiple options for construction methods."

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### 5th place: Accumulation of additional options

"Would you like to make the windows larger?" "How about floor heating?" "Why not use solid wood flooring?"

They are added little by little at every meeting. Even if each one is 100,000 to 300,000 yen, it is common to realize that **the total of options has exceeded 3 million yen**.

**Judge upgrades based on "whether you will really use it every day."** Investments in things with low frequency of use have low cost-effectiveness.

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## 3 ways to identify a "fair price"

### Method 1: Always get comparative quotes from multiple companies

Get quotes from at least 3 companies. This alone will give you a sense of the price.

However, "cheap" does not mean "good." It is counterproductive if the reason for the low price is "because construction quality is being lowered."

**What you should look at is whether they can explain "why it is that price."**

### Method 2: Do not compare only by price per tsubo

The figure of "700,000 yen per tsubo" changes its meaning completely depending on what is included.

- Is it including exterior work?
- Is it including ground improvement?
- Is it including lighting and curtains?
- Is it including consumption tax?

**When comparing, always align by "total amount."**

### Method 3: Check the "quantity" in the quote

It is difficult to check whether the quantity of materials is correct, but such questions are effective.

"What is this temporary construction cost for?"

"Which manufacturer is this unit price from?"

Companies that can answer are trustworthy. Companies that get stuck for an answer need to be checked.

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## The iron rule when negotiating

Finally, I will convey the mindset when actually negotiating.

**Iron Rule 1: Seek "clarification of value" rather than discount demands**

It is more effective to say, "Please tell me the basis for this amount," than to say, "I want you to make it cheaper." Costs that cannot be explained are easier to cut.

**Iron Rule 2: The final quote stage before the contract is the decisive moment**

Negotiation after handover is almost impossible. Before you stamp the contract, it is the only time to win.

**Iron Rule 3: Always ask, "What will change if I cut this cost?"**

Make a decision after accurately grasping the disadvantages of cutting. There is usually a reason for what a professional says, "It's better not to cut this."

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## Summary: Knowledge is the strongest weapon

Buying a home is the biggest purchase in life for many people.

But unfortunately, no one teaches you this at school.

There is only one thing I wanted to convey in this article.

**"What you don't know costs the most."**

Just by knowing the common sense of the industry, your dream home could change by several million yen.

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## For those who read this article and want to know more

I provide housing construction consulting services on Coconala.

- Review/check of quotes
- How to read drawings/confirmation points
- Parts to look at in the contract

I provide advice from the perspective of a site supervisor, standing on the homeowner's side.

If you are interested, please check my profile.

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If you would like to consult more about this topic, I also accept it on Coconala. I would be happy if you could at least register it as a favorite◎
→ https://coconala.com/users/6200861

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