From the Builder’s Desk; July 19, 2020
Every production builder has their own standard plans
Dear Les,
I have always wondered how production builders decide which plans to make “standard”?
Answer:
Easy: Which plans fit on the lots? Sounds weird, but with the changing lot sizes governed by the desire for property owners to maximize their return, and from developers who are trying to get as many lots out of their higher and higher priced land, it leaves the home builder trying to fit buyers’ favorite plans onto available lots.
But all lot sizes remaining constant, the builder will pick as his “standards” those house plans that both he and his buyers select most. In most cases he’s already fashioned a series of plans that fit a particular buyer group, so already the plans are narrowed to fit first time buyers, first time move-up buyers, empty nesters, etc.
Dear Les,
Why don’t production builders employ interior designers to work with the home buyers?
Answer:
Generally, builders don’t employ interior designers to work with buyers. Buyers who can afford, or choose to afford interior designers, already know who they choose to work with. Others will work with the architecture firm, as often the architects will undertake “interior elevations” that help spell-out interior options that otherwise are not readily visible. Also, sometimes the architect envisioned a particular “look” that is lost once the building process is completed. Lastly, there is the issue of cost. Many buyers have outdated furnishings and their designer or architect will choose $20-$40,000 on interior furnishings that may not fall within the buyer’s budget -particularly if they’ve blown their budget on the house itself.
Dear Les,
Why do builders exact so much “non-refundable” deposits?
Answer:
This is a tricky/sticky issue. With inexpensive homes, the builder can be pretty well assured that if the house doesn’t sell to one buyer, another will come along to snatch it up. So for inexpensive homes, the builder really doesn’t need to charge much for a non-refundable deposit. But the higher the price of the home and the more specific amenities the buyer has selected, it becomes tougher and tougher to find a replacement buyer. Therefore, the more exacting your tastes as a buyer, and the more specific your interior design choices, the more difficult it would be for the builder to find an alternative buyers, should you change your mind or suddenly get a job transfer to Bango Bango. The price range for non-refundable deposits will range from $5000 on the low side to $100,000 on the high side.
f you have real estate-related issues you’d like to discuss with our resident retired builder of 30 years, please email him directly. There’s no cost to you. Your question may even be featured in the next installment.
Contributing Editor, Leslie Savitch
Former home builder, Coach for people in transition
Les@createanoasis.com
The information on this blog are based on personal opinion and experience. It should not be considered professional financial, real estate or legal advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial or real estate professional.