New Construction Communities - Can I Request Standard Equipment and Upgrade Options/Prices Before Submitting an Offer? (incentive, countertop)
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I have recently looked at two new construction communities in my area and am seriously considering preparing to submit an offer on one of them in the near future. However, I'm starting to learn that almost everything is an option. My fear is that even though the base prices on the communities are attractive, the upgrades can add serious $$$ to the cost.
I am not one to purchase things (not even groceries, let alone a house) blind. While the sales agents have offered ballpark figures for some items I inquired about that were obviously upgrades, I need way more info than that before I consider an offer.
Would I be out of line to request a full list of base equipment for the homes and a full list of options with accompanying list prices before submitting an offer? I don't want to get nickeled-and-dimed to death after signing a contract, and that's my big fear (especially with one of the communities). I want to know exactly what I'm spending, and while I expect to have to add small things here and there, I cannot get into a situation where I'm spending $500,000 on a house I thought would cost $350,000 because the sellers kept everything a secret.
BTW, if it helps, the builders are Ryan and Pulte. (Ryan seems to be the bigger nickel-and-dimer, but the Pulte community is in a nicer town and has a higher base price.) Thanks for any info or advice. This will be a first house purchase for me and my head is swimming.
Hopefully, you have not provided your name/contact info to either builder.
If you have, then "good luck".
If you have not, then hire a buyers' agent. One who specializes in dealing with builders. The builder will pay for that agent's services to you. Crazy, I know.
I do not believe a real estate agent is necessary for new construction especially in a development unless one is a real novice. A lawyer prior to signing anything yes, but not a real estate agent. The agent will be by the builder but that is money (typically about 3%) I can use to deal with on the price.
Few developments will deal on the base price, stripper home. There will be a lot of wiggle room in the options. I say go with the options you want and start to deal there.
My last two purchases (and two prior ones) were new from developers and they had an options list (quite lengthy) to pick from.
I guess it depends on the builder and maybe the geographic area? I got a full price list for all of the options before I made an offer so I could at least ball park everything I might want to do to the house and have a better sense of what my real closing price would be before I signed a contract. The two main exceptions were flooring and tile work - meaning that because there were so many variations in that, they couldn't give a price until I had actually gone to the design center and picked out what I want. But I knew the general pricing for that, and figured if they builder price was too high, I would just wait and do it after closing and I could still estimate about how much it was going to cost to get my house the way I wanted it.
There was no wiggle room in the pricing, btw, but I bought in an extremely popular area in a very hot real estate market. That will definitely be location specific.
In 2000, we built a new house in a new neighborhood. The builder was Centex, and we asked for the complete option list, with prices, before we signed anything. It was many pages, but it let us decide what we could afford to add, in regard to upgrades.
Yes, most builders nickel and dime you. I see many $500k+ houses that come with cheap laminate countertops as standard.
Our first house, years ago, was a Pulte house. I am very surprised that they did not offer you a list of upgrade costs. We knew going in exactly what each upgrade would cost.
Not sure if it's the same now, but Pulte will use their own contract and not the standard contract for your area. They won't move on the price, but they may offer some free upgrades. Big builders such as Pulte and Ryan don't do much negotiation. The price is pretty set. Occasionally they will offer incentives such as free upgrades, a basement, etc.
Our first house, years ago, was a Pulte house. I am very surprised that they did not offer you a list of upgrade costs. We knew going in exactly what each upgrade would cost.
Not sure if it's the same now, but Pulte will use their own contract and not the standard contract for your area. They won't move on the price, but they may offer some free upgrades. Big builders such as Pulte and Ryan don't do much negotiation. The price is pretty set. Occasionally they will offer incentives such as free upgrades, a basement, etc.
I'm in total agreement with this. Ask for the upgrade lists with vists.
Rule of thumb that I have heard and read repeatedly. When looking at new construction, take the base price and add 20-30%. That's ballpark.
Now, I'll be blunt. If you're doing this without your own realtor, you're foolish. If they won't accept th@t you insist on using your own realtor and they are going to pay, walk away. (And I'll bet they call you in 3 days if they think you're a serious buyer)
Furthermore, (unless you are looking at a spec home) you don't "make an offer" on new construction. They TELL you the base price, they they add the cost of upgrades and lot premiums. You MAY be able to negotiate sone incentives on those upgrades or a reduction on a lot premium. But ultimately, they set the price and you take it or leave itl
Location: Finally the house is done and we are in Port St. Lucie!
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When you go in to talk to the sales person, at that time you talk about what upgrades you want, what you will take as standard. They price out the options you want. You get the base price with your choices and then you can, and do, start taking things off your wish list to get the price to where you are willing to go.
You do not have to commit and you can take your time (we took a few days) to think things over.
Remember, the model home is going to be loaded with upgrades.
The other thing you want to double check is the plot premium. At least with my builder, every plot had an extra fee added, with the most desirable lots having the highest fee, but even the less desirable ones still had one.
We did but that was 2001. Had our own GC on site everyday to make sure we got what we paid for the 48 pages of upgrades.
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