I currently work for a national new home builder. I am in the Phoenix market, which as you may know, is 'back to normal.' Either way, it's a tough sale due to the market and the plethora of choices buyers have.

I have a potential buyer who left me money (is serious about the home) and wanted to find out if I we could add prewire for a security system and surround sound, add some more tile and change the countertops from laminate to stone. Now, the house is still being framed (done framing today) so there is no electrical work done yet. After speaking with the head builder in the community, the design studio and my direct manager - we will not accomodate ANY of the changes!

I already have plans to go into general real estate because I feel to restricted with this builder - and this has pushed me over the edge!

WHAT WOULD YOU DO if you were the buyer or the buyer's agent? The builder wants to get the house done by the end of September and this would push it into October ... September is the end of the fiscal year and that is why they won't budge.

I am in a place where it's hard for me to explain to the buyer that we won't do ANY of the changes without a real good explanation. What do you think the builder should ideally do? It's unfortunate that the builder is putting it's stockholders first and it's clients second!!!

Okay, I feel a little better now that I vented, but I need some professional opinions!

I am not sure why these changes would push back the completion date.

The guys who would run security or surround sound wires can do so seperately from the electrical folks. As for the countertop and extra tiling work, I could see where an argument might be made that those items could pose a delay.

I would think you could get the ok for at least some of this.

My experience with this kind of thing as an agent is pretty limited. I have had folks buy homes in the process of being built (but never in a large development) where changes like this were made at the stage you indicate with absolutely no impact on the completion date. Hell, in one case, the future owner actually went to the site and ran wires for a home network himself.

I am pretty familiar with construction issues, I have a contractor or two in the family who I bounce this kind of stuff off of. Having said that, it leaves me wondering why this is such a problem.

I think I would get a specific breakdown of what is going to cause the month delay. It can sometimes take a while to get the precut stone counter top. The extra tiling might take some time. Find out what the long poles are. See what you can get done and still stay within the completion date the builder wants.

Focus on getting the things done that are a HUGE pain in the butt to get done after the drywall goes up.

R

I'm assuming that the buyer is willing to pay for these changes (upgrades)?

We build homes also and there are always change orders. The change from laminate to granite at least shouldn't add on that much time to the job so I would say the builder just wants to "crank em out" by building a cookie cutter house. But he's the builder so he can refuse whatever he wants.

Only the buyer can answer the question on what to do. How badly do they want the sound system, the granite and more tile? Personally, if I were them, I'd walk away. Why build a house when you can't get what you want?

As for your feeling restricted, I can certainly see why.

The reason it will take longer is because yes, the stone countertops take longer to produce ... but are not measured until after drywall is complete and cabinets are ordered.

We do not allow buyers to do their own wiring, electrical due to legal issues.

It's sad, to me, that the customer-service experience will be hindered and I know the buyer will not go through with the deal - If I were her I would not either!

Maybe she can be a client of mine tomorrow, when I join the world of general real estate!

I use to be a PM for a construction company and what the builder is doing is pretty typical with spec homes actually. Divosta is really strict about it. You get this color house, these cabinets and countertops. If you don't like it change it after you buy it. I've finished a home and the next day there are new painters, countertop and cabinet people in there tearing the stuff out. Great way to get new cabinets for your garage!

You have to look at it from a builder's point of view. What happens if the buyer backs out or can't get financing? Running those kinds of wires really is a pain and it will add days to the schedule.

Ah yes, I agree to look at it from the builder's point of view. I've done that and can see it will push the house into the next fiscal year. It will also result in one less potential sale. The house is still being framed so what's the big deal??? - at least that is what the buyer will say and can you disagree?

I've brought up changing the countertops after closing and adding the tile - but who wants to buy a house only to tear it all up after it's finally closed? Even if the buyer did back out on this deal, many of our home buyers are looking for these additional features so it would not hinder a future sale. The buyer is more than financially capable to follow through.

I agree with Concepts, the main reason for building a home is to get the details you want...if the buyer can't be accomodated then it would be just as easy to find another builder OR buy existing and get it much cheaper since they can't pick out their stuff anyways.

Josh

You don't let me do my own network wiring and I don't buy your house, plain and simple. The shoddy workmanship done in most home networking/phone wiring is poor at best, I see it all the time, wires stretched and pulled around rafter supports, wiring that has been bent/kinked, etc therefore degrading the solid copper wiring and the signal it carries especially if you're going to be using it for high speed. In my former life I did network wiring and the way these guys throw this stuff in is comical at best. No thanks, I'll save having their "network guy" come out and do it myself and do it right.... besides, I don't know about out there, but here phone/computer/network wiring is not inspected since it's low voltage, so it doesn't really have to meet any standards.

Josh

Not being accomodating this early in the process for such a usual request would be a red flag to me- and I would let my buyers know to expect more hassles from the builder later in the process. As far as delaying a month in your current market, I would think the builder should be happy to have a buyer at all. Better to have it close in January than have it sit empty 'til spring.

If I were the buyer I would walk. I am currently having a house built and the builder had no problem accomodating any of my unusual request by getting estimates and if I wanted it done so be it. The only requirement was that I paid half of any non structural upgrades over 10,000.00 I thought that was fair.

Ben,
I am also a custom builder and could understand the builders attitude if it was later in the construction phase but it is still early and these are just minor changes. Especially the wire for security and sound(that should have already been done regardless in my book) and the countertops are an easy one and would not change the production schedule at this date.

Guess this bulder just does not wnat to make this sale.

You asked what someone would do as the buyer's agent. I'd find out how committed the buyer was to the upgrades. Would they walk from the purchase without them? I'd evaluate whether sales are sluggish at the development. I'd try to figure out how much unnecessary expense the buyer will incur to install the upgrades after moving in compared to if they went in during the build stage. Certainly, I'd push hard to at least get the sound system wiring inside the walls and ceilings, even if not connected to speakers, during the build phase. I'd ask for a price reduction to offset the higher costs which the buyer will incur later due to the builder's inflexibility.

I think the key to establishing guidelines is disclosure. If the builder has a policy of: within 30, 60, 90, 120 etc. days, this action has to happen during the construction process. After those dates (30/60/80/120 etc.), any change order will cost $xxx. After xxx days no change orders will be accepted.
Once these guidelines have been established in writing in the contract, every buyer knows where they stand and will accept the consequences.
In the absence of detailed guidelines in the contract, the builder will leave themselves wide open for lawsuits.

We're having a house built in Phx right now, and like Pikes Peak said, when we signed, we were given a list of no-turning-back dates for change orders. It's my understanding that there are a number of reasons why changes can't be made after a certain point -- ordering matching tile may add additional time to the project, delaying close; scheduling subs to come back to do additional work may delay closing, etc. It's all about the bottom line, it is afterall a business.

Buying new is rarely an easy process. but the client doesn't have to buy new build either. You pretty much have to understand going in that there will be headaches, and as a buyer, it won't be easy to get your way if it deviates from the norm.

I've handled public relations for many homebuilders prior to becoming an agent, and have quickly learned that the builders aren't very accomadating for buyers. While there is a customer service element to it the basis of the business is building and selling homes. There's never much wiggle room for a buyer especially given that these are tract homes -- not custom homes.

If I were you, I'd just stick with what your company says -- don't burn any bridges. It sucks for the buyer, but until you're a free agent you're still a representative of that builder and you still get paid by them to sell their homes under their terms (within legal boundaries, of course - I hope!).

Best of luck!