Negotiations with builders?
Lizzie
9 years ago
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Comments (9)
Michelle
9 years agogwlake
9 years agoRelated Discussions
Builder fixed fee question?
Comments (3)We had that around here back in the day. Fee would be 18% and they would also bill the supervisor's time which usually came out to $30k or so. Now 15% is more normal and I believe all the builder's that charged supervisor's time are bankrupt. Hubris extends to other things..... You should certainly be looking. I would expect that central CA is not a crazy expensive place for these things - you should be able to be in the 15-20% for total GC build. I'm sure that CA is still CA in the PITA factor for building....See MoreBuilder not follow contract, compensation?
Comments (3)This problem is absolutely caused by our builder gave his contractor "wrong design plane". My husband and I finally decide to deny the compensation and ask our builder bring back the elevation as shown in design document we signed. So now it need to take one more month to correct this problem. And we need to pay more attention to prevent shoddy work in the future....See MoreLong Term Lock or Float
Comments (6)In your post you state "There are still questions about when the builder will start building". Based on my personal experience I can tell you that if building has not started yet it could be unrealistic to expect a 6 month turnaround. I contracted to build a new home in June 2006. At the time the expectation was that the home would be complete by the end of 1Q07. I had a home to sell, and the contract was non-contingent. A building permit was not issued until March 2007 due to various challenges with site development. That June, with the home fully framed out, I paid 1% for a 150 day lock with floatdown option. (If you remember, rates were spiking very hard that month). The 150 days came and went, and the home was not complete-I was unable to close on it. We ended up having to walk away from the deal. That turned out to be the best decision we ever made and the neighborhood has basically gone under with only 2 homes occupied by owners and a dozen others in various states of non-completion. We had NO reason to think that the tide would turn-the builder appeared to have deep pockets, having completed a very high end recreation facility in the community before any closings had taken place. I was fortunate that the lender was able to use the 1% towards closing costs on the home we bought instead. If I had it to do over again I would have taken my chances with rate, and I think that in the current environment rates will likely stay very much in their current range as a worst case scenario. There is simply too much downward pressure on rates as a result of the markets....See MoreFlat Paint Used In New Construction
Comments (21)From the OP's description, they are considering purchasing a home that a builder is constructing on speculation (dare I say "spec" house?) on a builder-owned lot. By definition, it's not a custom home. That said, most builders will entertain some level of customization/personalization in exchange for price increases. I doubt any builder will agree to turning your choice of painter loose in their home before you take ownership of it. If the builder will entertain changes, it's simply a matter of agreeing on a contract price and signing a purchase agreement that includes those changes and cost increases or decreases. Typically, the builder will want a contract deposit, plus the cost of any such changes paid at signing of the purchase agreement. So, if you walk away from the deal, they aren't out the cost of the changes. A local real estate attorney would be a good resource to review any proposed agreement and advise you accordingly. Best wishes....See MoreVith
9 years agolast modified: 9 years agohouses14
9 years agoSpringtime Builders
9 years agoLizzie
9 years agoMatteson Custom Homes
9 years agoLizzie
9 years ago
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