Expert: Jessica Bryan - 8/14/2007

Question
QUESTION: Jessica - Going through the upgrade process in a new construction/development in Arizona.  My husband has asked the builder/design center to either back out or account for the standard items that we are eliminating or upgraded.  I know they charged us the retail price for items such as sinks, oven, tiles etc.  However, is it normal for them to have to deduct the price of the "standard" item from the upgrade?  My husband was not joking when he told them if they couldn't do it - to put the eliminated or replaced items (sliding glass doors, light, oven, etc.) in our garage since in fact we paid for them with the price of the house.  He was not joking.  Is he right?

ANSWER: Dear Mary;
If the items haven't been installed then the builder should probably be able to provide the upgrade for the difference in the two prices. However, if the standard item was already ordered then the builder should be able to give you that item since you already paid for it.  I would discuss this with the builder.  Each builder does things differently since there are some that only build a few homes and order as they go.  Others, that build in quantity can easily switch standard appliances to another home.  It depends on what has already been paid for as well. If you feel like you have already paid for these items and want them delivered to you and then you want to pay more for the upgrades, discuss this with the builder and see what he says.  In most areas, the standard or upgrade must be installed in order to get the final inspection and certainly to get the loan.  A lender won't fund without the home being completed.

~Jessica Bryan

---------- FOLLOW-UP ----------

QUESTION: Thank you Jessica - That was fast!!  

In our case the home is part of a development.  They have not yet started construction and I'm still in the upgrade choosing process.  For instance a 36" Stove I'm getting is upgraded from a 30" and I know for a fact the price of the stove is just a little marked up from prices I've seen on the internet - Same goes for 4 upgraded sinks and sliding glass doors, tiles, flooring etc..  We are eliminating a wheel stop,eliminating two medicine cabinets and eliminating a dining light and microwave and another sliding glass door for asthetic purposes.  Also upgrading cabinets and from the looks of it they are charging full price without taking the standard items into consideration.

I don't believe they have these things "in stock" as some of our conversations have brought up "ordering" from sources and how some are faster than others at getting the materials to them.  

I don't mind some commission prices and shipping put in the price but I would like to see some credits or at least some paperwork accounting for the difference between the standard and the upgraded option. I did ask and was given a vague response that they'll back out some pricing - but - I get the feeling that it is one of those things that if you don't ask - you don't get.  Also writing to you because I anticipate some resistance after we had a "casual" conversation about this yesterday.

I just wanted to be prepared.

Answer
Dear Mary;
Yes, it is a good idea to be prepared when having any discussion with the builder.  I am sorry to say that there are some builders who have less scruples than others and may "forget" to credit you if you don't ask.  In fairness, I know that there are some costs for upgrading from the standard materials that has nothing to do with the cost of the items.  I worked in new home sales for many years and the builders explained that when there are changes there are often errors and the workmen put in the standard features.  Then, they have to change them out and there is labor and cost associated with it.  Also, some upgrades require extra reinforcement, enlarged space or additional bracketing, etc.  Any change order has to go through the office which requires additional paperwork, time and supervision.  Consequently, builders will charge for the change regardless of the cost. (Even if it is to omit something.)  I would like to give the builder the benefit of the doubt,but I also think that you are right to check everything very carefully and ask lots of questions.  You should be happy with the answer the builder gives you or discuss it further.  This situation sounds more like the builder is trying to make unfair profits.

~Jessica Bryan