Building a new home? Advice!?

How much money do you need to put down before the home is done? (Builder says 50% of ';upgrades'; due before closing)


Building a small rail around a patio $1600, is that a lot?


Small dog run $750?


Builder borrowing the money with my credit?Building a new home? Advice!?
You have two decent answers already, but there is a little more that needs to be added.





From your description, it sounds like you do not have a construction loan. In some cases when having a house built you get a loan for what will essentially be the entire cost of the house and you give approval to give money to the builder to finance the next portion of the construction.





It sounds like you have picked a model and have made some upgrades (personal touches) to the property. The builder wants 50% of these upgrades paid for, by you, before closing because if you can't complete the purchase for whatever reason, they figure they can get about half of the improvement cost out of the next buyer.





Personally I think those 'upgrades' sound expensive and are easy enough to do on your own once you own the house. I had a significant amount (80 linear feet) of full sized fencing done for $1200. The dog run also sounds overpriced. The kind of options you want to pay for are things that are almost impossible (or very costly) to do afterwards. Making sure there is rough plumbing for a bathroom in the basement if you ever want to finish it, hardwood flooring, etc. are options or upgrades that are probably worth it at the time of construction.





I don't believe the builder is borrowing they money with your credit, but I don't really understand that part of your question.Building a new home? Advice!?
If the builder doesn't have enough money to do the construction then you need to find another. You should have a construction loan that you can pay him as he completes a certain % of the work. You should also ask to see all invoices for the material used, make sure he used them and that they are paid for. I have seen people use a builder and after the home is complete a lein is placed on the home because not all of the material has been paid for. Then the buyer has to try and go after the builder. You should find a different builder.
never give any builder one penny in advance--if you can.





YOU should be using bank $ and


not your own!!! AND


make sure you get a copy of the


contractor's license # and


run a BBB check on him/her


before hiring and


lastly--like big companies do--


get a full total expected price


in advance and completion date.





PUT in your contract,


15% less for every day late and


10% more for every day earlier--


or something like that.





and then, see if you can


find a neutral party who is an expert


to review the job as it is being


finished.


[ideally, watching the job be done


as an unidentified person so your


contractor does not get itchy.]

natural facial