Does a custom builder have leverage if... (home, neighborhood)

[eagle]

Does a custom builder have leverage if they own a lot that we buy and we must go with them? I know some communities may have a few builders to select from, but would think this would still be the case as they probably would not compete against each other too much (so they all make good profits). My question - it seems to me the builders would have a lot of leverage against me in terms of pricing. Is this the case? In other words, if I am locked into a lot and I must go with with the builder that owns that lot, they could charge me much more vs. say bringing my own builder.

[PDXmom]

Originally Posted by eagle

Does a custom builder have leverage if they own a lot that we buy and we must go with them? I know some communities may have a few builders to select from, but would think this would still be the case as they probably would not compete against each other too much (so they all make good profits). My question - it seems to me the builders would have a lot of leverage against me in terms of pricing. Is this the case? In other words, if I am locked into a lot and I must go with with the builder that owns that lot, they could charge me much more vs. say bringing my own builder.

I am no expert. However, my sister was in your situation. They found a lot that they liked in Chatam Co but wanted to use a different builder. The custom builder who initially owned the lot sold it to my sister's preferred builder who then built a home for my sister & hubby. Now I don't know if they were better off with pricing... but I do know they got the home and builder that they wanted. Good luck!

[VickiR]

Most of the developers have a group of builders for their neighborhood. Thus, they won't allow you to bring in a different builder...usually. It never hurts to ask.

Sometimes the builders in the neighborhood have already chosen a lot. If you choose a lot but don't want that builder, most of the time they'll switch with each other but only the builders in that group.

Vicki