NBR: need advice on construction of new house

shaadi

We are buying a new construction. We agreed on the house specs, but we found out there is a new lot available (slightly bigger and flatter), so we want to change the lot in our offer before signing the P&S. All lots were originally the same price, just that this nicer lot was under agreement and the deal fell through.

If we switch the lot, the builder wants to charge $15K more because the engineers will have to redraw the plans. Is that reasonable? I don't want to break the deal, I really like the neighborhood, but I also don't want to be fooled.  15K sounds too much.

TIA

lizzie53084

Bwaa?? That doesn't sound right at all! I don't know anything at all about this kind of stuff but how drastically would the plans have to be changed just because you are getting a larger/flatter lot?? I could be way off but I say somebody is trying to cheat you.

eminbmore

Is it a custom built house? Or did you pick from one of the offered floor plans? I feel like if it was a custom build, maybe they could charge you a fee... but otherwise that is ridiculous. 

tiniestjohnson

We are building now too.  I would ask for a proposal from the engineers.  They will need to redraw SOME stuff, and restamp drawings, etc. but I doubt $15k worth.  Ask for the proposal and the breakdown.  I would assume $5k more, max.

ameliasmom

eminbmore:

Is it a custom built house? Or did you pick from one of the offered floor plans? I feel like if it was a custom build, maybe they could charge you a fee... but otherwise that is ridiculous. 

This was my immediate thought.

jculp

15K is quite a large amount of money for a lot change.  Is part of it a premium for the better lot?  It realldy depends on price of home when trying to figure out what you are dealing with and where/location you are.  Here in Indianapolis a lot premium doesn't really go over 5k, usually due to corner lot, pond, woods...  I would ask if the 15k is for the redrawing and is there any room for negotiating on that fee.  I'm a Real estate broker and I have dealt with some custom home builders who are sticklers, but usually they will wave/discount this fee.

shaadi

Hi jculp,

we are in New England and the house price is $700K, so I feel 15K is too much. The house plans are slight modifications from the builder's floorplan and the lot switch does not involve any changes on those.

The builder is saying that the lot is better (so maybe he wants to charge a premium), but when we were choosing the lots, all were equivalent from a price point of view. So I don't quite get it. For the builder, this is a deal breaker. I feel he is just annoyed that we changed our minds.

eminbmore

So, IMO - if the builder is being this much of a PITA now, it's signifying more problems to come.  When we built (last summer) we had an awesome experience, our builder was very responsive and any time we had an issue they bent over backwards to fix it.  I feel like if they're being this hard to work with now, what are they going to do if something goes wrong during the build, and are you in for more surprises/hidden fees, etc.  KWIM?

ameliasmom

shaadi:

Hi jculp,

we are in New England and the house price is $700K, so I feel 15K is too much. The house plans are slight modifications from the builder's floorplan and the lot switch does not involve any changes on those.

The builder is saying that the lot is better (so maybe he wants to charge a premium), but when we were choosing the lots, all were equivalent from a price point of view. So I don't quite get it. For the builder, this is a deal breaker. I feel he is just annoyed that we changed our minds.

I think you have to be prepared to walk away (if you haven?t signed anything or put any money in yet).  The housing market has not recovered enough that a builder will want a buyer walking away IMHO.  I think his tune will change if you indicate that you are walking.