Changing model after signing contract
Deepti Nemani
3 years ago
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Comments (11)
Mark Bischak, Architect
3 years agochispa
3 years agoRelated Discussions
Did you sign a contract before...
Comments (11)I will just speak of my expereince. We are building a custom home, we first went to the bank and found out what we would be approved for. That gave us an idea of what we could spend. The bank also gave us information on how the loan process would go (which has been a nightmare this past week with one thing after another popping up, mainly because of issues with seperating the land) We found our builder, which had a model that we liked, but needed to shrink it a bit to meet our budget, which the builder happily did and drew up a new floor plan that was almost exactly like the one we went through. He also supplied us with a spec list (17 Pages) that spelled out many of the material/items (not everything though) The next few weeks I emailed him daily with getting prices for certain upgrades (8' sliding door instead of 6', whole house surge protector, etc, etc) It must have been 20+ items he priced out for us. We went over the list and decided what to add to the house and what we could afford, still giving us a little room incase our allowance go above what is given (Cabinents/Appliances/Flooring/Landscaping/Lighting). I also found our "Credits" for items that I planned on buying on my own (Toilets/Kitchen Sink). He re-wrote the spec list to include the items we wanted, and gave us the quoted prices in the emails. He gave us a Contract and told us to look it over, I researched it and found it was a very general contract that did not "Favor" the builder (BE CAREFUL THERE) I seen that there was a few things missing (Start and End Date) I also added a clause about if an item/material was not stated on the spec list, that the same item/brand/material used in the model home we toured would be included. The builder was happy to add these items and we signed the contract. Our builder only requested 1% of the total cost to build in order to start, so your 15% seems very high IMO. That covered his cost for the revised floor plans, that he paid for in hopes we went with him, starting the permit process, and getting the lot staked out. Our builder submitted the permits to the city(which take around 2 weeks to be approved) We should be closing on our Construction loan soon (next week hopefully) We just locked in our 120 day build Mortgage rate and couldn't believe how low it is right now. I have been keeping our builder updated on the loan process and he stated once he gets the green light he will pick up the permits and start. In your case Jenwrens, it seems like things are being rushed on both ends. I assume the zoning board needs plans to review, but you shouldn't have to sign a contract in order to get the items needed for the zoning board from your contractor. Research Research Research, this forum is a great place. Get all your prices before you sign the contract, otherwise you go through the Change Order process and who knows how much the cost of an item might be marked up once the contract is signed. My .02 would be to Meet with the bank, find out what the zoning board needs, research the builder/contractor (references etc)get a more defined/updated spec list, before even looking at the contract. I like the idea of having a lawyer look at it, just make sure the lawyer specializes in real estate or builder/buyer contracts and has some experience. Going into talking with bank, builder, zoning board, make sure you get a list of questions (research) and not only have questions, but have an idea on how you want the question to be answered, followup with additional questions if the answer isn't something your hoped for our thought would be the answer. My builder stated he hasn't had anyone in his 10+ years that has gone as far as I have in researching him and his company (a good thing IMO) I also like the idea of getting an architect, if you can afford it, which we couldn't. If you have more follow questions let me know, I don't know much, but I sure have done my research on things and am in the process now and can relate....See MoreKD changed sink mfg after contract signed
Comments (9)Can I please just thank EVERYONE that replied to this?!! So...it does make me feel so much better that you all too have experienced the Total Freak Outs. I've gone away for a couple of days to make myself halfway normal again, and it worked. For now. And yes, AYERG73, "It's unnerving to trust someone about a choice you might not fully understand all the details of and pay them only to have them change it" yes yes yes it actually is a matter of "can I trust this person that has a lot of my money" and I don't know the why's of everything that he does...wish he would explain things better, but there you go. I hate to be such a cynical skeptic, but you do hear horror stories. And yes, macybaby, my husband has indeed gently and not-so-gently brought me back to earth with "call someone and ask for a therapist--you have GOT to trust this KD...he works for a reputable company and comes well-recommended, so stop trying to think he's trying to screw with you. Now go see a therapist!" HA too funny. Thank you all so much!...See MoreBuilder trying to increase price after signing contract.
Comments (11)Here’s the catch. Materials costs have risen dramatically and increases are still happening. Even if the contract doesn’t have an escalations clause (it likely does), and the builder is compelled to construct the house at the original price, it is the customer that will end up paying in the end. An experienced builder knows the cost levers better than you do and the loss of margin from higher materials costs will be mostly made up for by reducing other costs like labor and materials quality. Unfortunately it’s becoming expensive to build now and it’s hard to keep quality at a high level without changing specs or compromising somewhere else....See MoreBuilder Increasing Cost After Signing Contract
Comments (30)I don’t think you are alone in prices rising. Bite the bullet or walk away. Everyone is over a barrel thanks to fossil fuel production being shut down on FEDERAL LANDS. So we are importing fossil fuel from all over the world. Barrel costs have gone from 40 dollars a barrel to 70 a barrel in 6 months, and rising. Everything moves on fossil fuel transport. Everyone is in a pinch..... your builder needs to survive and you need a house. This is the new reality. Your builder is passing his costs on to you.....as is every other contractor in the nation. Just be grateful interests rates are amazingly low. A long term low cost mortgage will save you a lot of money long after you have moved into your home! Good luck....See Moredan1888
3 years agoFlo Mangan
3 years agoLouise Smith
3 years agoDeepti Nemani
3 years agoMark Bischak, Architect
3 years agolast modified: 3 years agoDenita
3 years agoDeepti Nemani
3 years agoLindsey_CA
3 years ago
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