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naive and unsure about what to do...please educate me!

10 years ago

We are planning on beginning construction in September. We have been working our our builder for a little under a year now, designing our house. We just got funding in order and got a lawyer involved to handle the closing. This lawyer after reviewing our paperwork tells be that he thinks that we are paying too much for the house (he has not seen the specs or anything at this point) just that it is a lot of money to spend on a house. (this is my first time working with this lawyer in this firm). I was a bit thrown here and it made me second (or third or fourth) guess everything. So he offers to review our specs and contract. I send it to him and he then tells us that he just handled a home for someone that had many more things then our house includes and cost significantly less. He thinks that we are paying about $100,000 more then we should!! that is significant.

Ok, yes we are probably really stupid but we did not get any other bids for the house. we really like the work that this builder does. He also built a house for a friend of mine who couldn't say enough nice things about him. Time kind of got away from us. I don't even know what the right thing to do here is. I don't want to look back or even feel right now that we are being taken advantage of which is how the lawyer is making me feel. We have never built a house before. Is it normal to know how much the builder is making on a project? Is that something we should have asked up front? is that something I should ask now? And if so what percentage do they usually make?

Oh and I asked the lawyer who built the house that he quoted me specs on. and he said that he GC'ed it....that made me think two things (1) conflict of interest and (2) he probably knows what he is talking about price wise to some degree although I've never heard of him and therefore know nothing of his work and if he does it part time, he must not know the best subs and all of that. Oh and one last thing. The banks appraiser was right on with its valuation of the house and what we are paying for it. Please give me your thoughts.

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