Free house upgrades when building?

[cpals]

I'm very close to building a house, but am just looking right now and I was talking with a friend who also built his house. He said that his realtor got them a couple free upgrades (I think cabinets or something, not sure) and that they negotiated what he got extra for no extra cost.

I've been doing this on my own and found the builder I like and I am pre-approved for the mortgage of the house, but I haven't sat down yet with the builder to discuss contracts or anything. Is getting upgraded carpet, cabinets, stove, etc typical and how would you go about bringing it up with the builder? Would I say I'm interested, but I'm still looking but if they give me this and that I'd buy?

Thanks.

 

[Dr. Detroit]

you normally only see free upgrades if you are purchasing a new home on land that the builder owns, they build cookie-cutter track houses and to entice new familes they offer free upgrades.

If you are looking to build a custom home that is a one-off on private land you own, I would not think any upgrade would be free.

 

[RedCOMET]

Well, from what my parents experienced with building a new home, get anything and everything in writing from your builder. Upgrades add up, and having documentation will help you keep the cost under control.

 

[D1gger]

Fmr12B is right. The free upgrades are generally only available when you are buying a home in a mass produced subdivision. If you have purchased the land and now have found a builder, you are looking at more of a traditional builder contract. In this case you:

1) can spell out everything you want in the home, including the type of cabinets, etc and then he gives you a firm quote for the project, and you may have some ability to negotiate that price a little, or

2) you agree to pay him a construction management fee, and you pay all of the sub-trade and supplier bills directly.

Both approaches have advantages and disadvantages.

 

[z42]

Usually you can get some free upgrades from tract homebuilders because they may have extra materials lying around that they would rather use than throw out and they will "throw them in" since they are already gouging you on the up front pricing or the interest rate. Real estate purchases are definitely a bartering process, like buying cars, and you shouldn't feel awkward negotiating. Try a phrase like "I'm really leaning towards purchasing a house; are there any incentives you can offer me to make my decision easier?" If the place is selling like hotcakes (love that phrase for some reason, even though I hate hotcakes) don't expect much in the way of free upgrades. But if they are having trouble moving units, you can usually get something from them.

 

[cpals]

Originally posted by: Fmr12B
you normally only see free upgrades if you are purchasing a new home on land that the builder owns, they build cookie-cutter track houses and to entice new familes they offer free upgrades.

If you are looking to build a custom home that is a one-off on private land you own, I would not think any upgrade would be free.

The builder (Maronda Homes) buys lots and then builds specific homes on those lots. I am looking at a specific lot/home combo that they are offering and have already let them know I'm interested (also been approved by on of their required mortgage lenders). So it's not a custom home, but I guess a spec home and they do offer upgrades...

Some of their features or I guess 'upgrades?' that are listed for this specific model:

KNOCK DOWN CEILING
UPGRADE PAD BASE CARPET ONLY
COACH & 2 FLD LIGHTS & APP.OUT
R-30 CEILINGS
10X18 PATIO SLAB
HURRICANE SHUTTERS
ALARM SYSTEM

Some of those seem like standard building while others seem sort of like upgrades.

 

[Greenman]

If the homes are selling well then you won't get anything, if the builder has a few that haven't sold, then they will almost always toss in a few extras.

 

[cpals]

Originally posted by: Greenman
If the homes are selling well then you won't get anything, if the builder has a few that haven't sold, then they will almost always toss in a few extras.

The market is pretty stagnant around here, but I think they're doing okay.