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Having a new home built (1 Viewer)

STEADYMOBBIN 22

Footballguy
Afternoon,

Were looking to move and have our eyes on a new home development still in phase one. We spoke to another couple who bought and they gave us some input. I asked how firm the builders were on the price and they said they would work with you/you could bring it down a little.

I know all about stopping by and hiring inspectors during the building process, what I would like is some advice from others about negotiating with the builders. 

Ill hang up and listen. Thanks in advance.

ETA - We have an agent (my FIL) and we let the builders know. 

 
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My BIL being a plumber who works in new construction, I have this advice. One builder in my area does anything and everything to cut costs. 

In my area of Minnesota, not sure about other areas, code is not 18” for walls, it’s 21 or 24 (I forget). This builders walls are all at that wider spacing for studs. They also go with the widest door joists allowed by code. So their homes have bouncy floors too.

This builder also instructs plumbers to save every inch of pipe humanly possible. For instance, the PVC pipe for the furnace, if it saves a few inches of pipe, send it out the front of the house instead of the side or back. Looks be damned.

So, when choosing a builder, check out the models and measure the stud walls to make sure they are 18” and check for bouncy floors. And if you know anyone in the trades, or an inspector, talk with them as well.

 
My buddy is building a house and he's a nerd so he read the contract word for word. Found a clause in there that indemnifies the builder for anything that goes wrong with the house after the occupant moves in. He had a lawyer loo it over and they got that sentence removed. He also found a lot of things that they agreed on, and agreed on a price, then the subs would boost the price and they'd try to get more out of him.

Hire a lawyer to look the contract over, most people just sign and build.

 
Don`t go cheap to save a few grand.   If you do you will be painting, replacing windows and fixtures in 5 years and end up spending more. Work with the builder to get upgrades on windows and doorwalls.  Believe me the builder is not your friend...they are there to make money so they usually don`t give things away. Cheaper things they put in the home the more cash in pocket.

 
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My BIL being a plumber who works in new construction, I have this advice. One builder in my area does anything and everything to cut costs. 

In my area of Minnesota, not sure about other areas, code is not 18” for walls, it’s 21 or 24 (I forget). This builders walls are all at that wider spacing for studs. They also go with the widest door joists allowed by code. So their homes have bouncy floors too.

This builder also instructs plumbers to save every inch of pipe humanly possible. For instance, the PVC pipe for the furnace, if it saves a few inches of pipe, send it out the front of the house instead of the side or back. Looks be damned.

So, when choosing a builder, check out the models and measure the stud walls to make sure they are 18” and check for bouncy floors. And if you know anyone in the trades, or an inspector, talk with them as well.
In most areas any load bearing wall should be 16" on center.   Other wall can be 24" OC, but most builders just do 16" on everything.   Some of the big production or penny pincher builders will try to save a couple bucks and do 24.   

 
Know all the extras you want prior to signing.   Once you sign you lose all your leverage and you have to pay whatever they tell you for upgrades. 

 
In most areas any load bearing wall should be 16" on center.   Other wall can be 24" OC, but most builders just do 16" on everything.   Some of the big production or penny pincher builders will try to save a couple bucks and do 24.   
Thanks for clarifying. You are correct.

 
I remodeled kitchens, bathrooms, and basements for a few years   Stop by the house every day to keep an eye on everything from day one including the foundation and drainage system   Water kills houses.  Make sure you are there for all insulation work   It's so easy to skip insulation in some walls. Be sure you know exactly what trim, countertops and fixtures are going in before its in.  Same with windows and doors.  Be sure plumbing is not on outside walls unless absolutely necessary and it is a short run from floor to sink.    

Did I mention to be there every day?  I don't trust most contractors at all.  

 
I remodeled kitchens, bathrooms, and basements for a few years   Stop by the house every day to keep an eye on everything from day one including the foundation and drainage system   Water kills houses.  Make sure you are there for all insulation work   It's so easy to skip insulation in some walls. Be sure you know exactly what trim, countertops and fixtures are going in before its in.  Same with windows and doors.  Be sure plumbing is not on outside walls unless absolutely necessary and it is a short run from floor to sink.    

Did I mention to be there every day?  I don't trust most contractors at all.  
every day is a must.  Question everything that you think is not right asap.

When you go to design center and pick upgrades, triple check that everything makes what you want on the contract. Write it all down as you go. Don't rely on their person.  I've seen granite counter tops for an island left off.  

 
ghostguy123 said:
This will be a process I never take part in unless I somehow become filthy rich and want to build something that simply cant be found in an area I want.  

I cant imagine putting myself through this sort of headache.
Please convince my wife of this.

 
Had a friend once that had home built....his advice DON'T EVER DO IT....never, ever,ever. As a previous poster said, not sure why anyone would want to deal with this nightmare. 

 
1. They will tell you that you can save money on price by getting the agent out of the deal.  Don't do it.  They are lying.  They build in agent fees as a different part of the cost structure.  So when they cut out your FIL, the agent onsite really get paid more than usual through a back-door deal by making you unrepresented.  You want to be represented, you want your FIL to get paid for his work (I assume he is good and adds value), and of course they are the ones paying him so why wouldn't you want him.  Again, they will tell you they can cut the price by cutting him out.  Don't buy into it.  That's the onsite agent trying to get more.  They will negotiate regardless of how much they pay him.

2.  The amount they will negotiate is based mainly on where they are in the community build out.   If they are just starting, you should focus on getting options thrown in for free.  Like wood floors, upgraded appliances, etc, etc.  If they are nearing the end and want to get it closed out, you can negotiate more.  You can also get better deals on the lots that don't sell, but of course this hurts you when you try to resell as people didn't want those lots for a reason.  Get the nicest lot you can without paying an extra lot fee.  End of the month is a good time to be in there.  They may not have hit their monthly quota and the builder's agent will be more pushy with the builder to get things through.

3. Above advice from another is really good.  You need to go at least 3 times a week.  Builders use all kinds of contractors.  Some good some bad.  You need to see everything, because once that drywall goes up you have no idea what they screwed up behind it.  I would suggest having a home inspector go by twice.  Once after the framing, electrical, and plumbing are up (before drywall).  Once at the end of construction.  don't let the builder get away with ignoring anything they find.  If the home inspector thinks it's an issue, it goes on the list for the builder to fix.  If you have things like nail pops, don't let it slide.  The builder needs to fix those.  be tough on them. 

It's not a terrible process, but you have to be tough every step of the way through it.  

 
Had a friend once that had home built....his advice DON'T EVER DO IT....never, ever,ever. As a previous poster said, not sure why anyone would want to deal with this nightmare. 
In a way that is true.  The first owner usually corrects all the flaws. My sister had a home built and it looked beautiful.  A year later when everything settled her drywall was cracking everywhere...she had to have that all repaired and repainted...plus a bunch of little items that were not done correct.

Many of these rough carpenters are just that ..rough.  Lots of rough edges.

 
check on stuff already built by these guys-really check & if need be ring a door bell on one or two.

seriously.

 
Had a friend once that had home built....his advice DON'T EVER DO IT....never, ever,ever. As a previous poster said, not sure why anyone would want to deal with this nightmare. 
:shrug:  My wife and I both thoroughly enjoyed the process. Building site was less than 2 miles from our old house, so every day (or almost every day) on the way home from work, I'd call and she'd be ready to jump in the car and pop over to see what had been done that day. Caught several mistakes while they were still easy to fix (mostly modifications to the original plans that the guy in the office had marked but the crew on site didn't catch or understand). It was actually fun watching what we wanted go up. As an added benefit, I got to see where stuff was being located in the walls, so I know what lines run where for future projects.

 
As a residential architect, I always get interested/excited by these threads and then less so when I find out it's a builder-spec house, which is a different and less personalized thing than I'm used to (of course, you're saving having to pay my fees in the trade off of not getting something designed exactly to your short and long term needs... among many other things).

lots of good advice in here, especially about checking in regularly to make sure they're building according to contract. of course, that means the OP has to know enough about the process and their contract to know if they're building according to it. so step one is to know exactly what you're supposed to get and how it's supposed to be realized.

I'm on site 1x (per typical contract) to as many times as needed per week to make sure my design is getting realized per my drawings and specs. this alleviates the need for my clients to have to do this- and most of them are too busy for this to be a reality any other way. I've always thought of having the architect on board useful in the obvious ways (personalized design) but also as a means of acting as part of tripartite system of checks and balances with the contractor. We're all working for the client to get this thing built on time and budget- and there are times when the contractor is a useful foil to potentially expensive ideas that we might offer. the opposite is often true with potential time/cost saving or even design ideas from the contractor that screw up the personalized design. I'm also fortunate to work in the super-high end side of things, so work with contractors and subs that are all top of the game and have yet to cut corners on anything I've worked on- we work together on many projects, often for the same client or their friends... so it behooves us to make the client happy, sometimes at the expense of losing money. given these relationships, I don't have to operate with as much distrust towards the process as it sounds like is required for these builder  houses.

 
Had a friend once that had home built....his advice DON'T EVER DO IT....never, ever,ever. As a previous poster said, not sure why anyone would want to deal with this nightmare. 
Isn’t early every house built by a builder at some point? You may not have to put up with the hassle but you get to see the entire thing built from the ground up. When you buy a loved in house you have no idea what’s going on behind those walls.

 
Isn’t early every house built by a builder at some point? You may not have to put up with the hassle but you get to see the entire thing built from the ground up. When you buy a loved in house you have no idea what’s going on behind those walls.
I think that gives us a good idea what's going on behind those walls.

 
If we go this route we are all covered on the stopping by daily thing. I’m a former home inspector and former construction supervisor so I know exactly what kind of subs these builders use and what I’m getting into. I am these builders worst nightmare. I will be all over them and thy won’t know it until they start production. 

We we are leaning on just getting the bump outs and added square footage, recessed lighting and getting no upgrades.  I’ll just bring in my own subs after for the solid surface counters and tilework after they shove in the builders grade crap. 

 
I have twice walked away from new builds and bought spec instead....

The most stressful, frustrating, tedious, expensive (more $ at every turn) experiences ever.

 
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As a residential architect, I always get interested/excited by these threads and then less so when I find out it's a builder-spec house, which is a different and less personalized thing than I'm used to (of course, you're saving having to pay my fees in the trade off of not getting something designed exactly to your short and long term needs... among many other things).

lots of good advice in here, especially about checking in regularly to make sure they're building according to contract. of course, that means the OP has to know enough about the process and their contract to know if they're building according to it. so step one is to know exactly what you're supposed to get and how it's supposed to be realized.

I'm on site 1x (per typical contract) to as many times as needed per week to make sure my design is getting realized per my drawings and specs. this alleviates the need for my clients to have to do this- and most of them are too busy for this to be a reality any other way. I've always thought of having the architect on board useful in the obvious ways (personalized design) but also as a means of acting as part of tripartite system of checks and balances with the contractor. We're all working for the client to get this thing built on time and budget- and there are times when the contractor is a useful foil to potentially expensive ideas that we might offer. the opposite is often true with potential time/cost saving or even design ideas from the contractor that screw up the personalized design. I'm also fortunate to work in the super-high end side of things, so work with contractors and subs that are all top of the game and have yet to cut corners on anything I've worked on- we work together on many projects, often for the same client or their friends... so it behooves us to make the client happy, sometimes at the expense of losing money. given these relationships, I don't have to operate with as much distrust towards the process as it sounds like is required for these builder  houses.
I’ve worked with a GC who does imaculant work, he’s also insanely expensive. He’s probably the type of guys you’re dealing with. It’s fun to work for and with good contractors like that. I’ve seen the worst and I certainly appreciate it.  

We are very early in the process so we will look at all options. I’d love to work with a custom home builder but the wife needs convincing. 

 
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Isn’t early every house built by a builder at some point? You may not have to put up with the hassle but you get to see the entire thing built from the ground up. When you buy a loved in house you have no idea what’s going on behind those walls.
I’ve had both my houses built. Lived in the first about 9 years (NoVA, I think you are in DC area) and then built my current house where we’ve been for 13 years. We’ve been pretty happy. We live 15 minutes away when we built the first one with a bigger builder. Some options but we were in our 20s so didn’t know everything we liked. We loaded up the second based on our experiences. I would have liked to have been onsite more with the second house but we were 8 hours away. We had a great agent and did a framing/regular inspection and he actually said it was built well. Semi-custom home and overall we’ve been really happy. We got to do things like a 3rd floor in a plan that didn’t have one, but they’d done a custom one in that model.

I’m sure they went cheaper in some cases but they also exceeded our expectations in terms of the wood floor stain/color. Dog has pretty much trashed it at this point so we’ll likely redo it when we sell. Anyway, it’s definitely more effort than buying an existing house but we were able to have it pretty much done as we wanted. Biggest thing we did was really amp up the 3rd floor last year. Haven’t had to redo a bathroom or kitchen or bedroom until this year (doing master bath but just tile and shower). 

 
I’ve worked with a GC who does imaculant work, he’s also insanely expensive. He’s probably the type of guys you’re dealing with. It’s fun to work for and with good contractors like that. I’ve seen the worst and I certainly appreciate it.  

We are very early in the process so we will look at all options. I’d love to work with a custom home builder but the wife needs convincing. 
custom home builder... architect? even the best contractors I'm working with- the guys who are fantastic at "getting" design intent and carrying it forward with unresolved areas- they're not much use at tailoring the design of a home to a person/family... building it, sure- but not designing it- even if they have somebody on staff who they say does these things. that said- there are some great design/build outfits out there that do both- but you're paying the fee (minimized in the combo, I think) for both.

 
1. They will tell you that you can save money on price by getting the agent out of the deal.  Don't do it.  They are lying.  They build in agent fees as a different part of the cost structure.  So when they cut out your FIL, the agent onsite really get paid more than usual through a back-door deal by making you unrepresented.  You want to be represented, you want your FIL to get paid for his work (I assume he is good and adds value), and of course they are the ones paying him so why wouldn't you want him.  Again, they will tell you they can cut the price by cutting him out.  Don't buy into it.  That's the onsite agent trying to get more.  They will negotiate regardless of how much they pay him.

2.  The amount they will negotiate is based mainly on where they are in the community build out.   If they are just starting, you should focus on getting options thrown in for free.  Like wood floors, upgraded appliances, etc, etc.  If they are nearing the end and want to get it closed out, you can negotiate more.  You can also get better deals on the lots that don't sell, but of course this hurts you when you try to resell as people didn't want those lots for a reason.  Get the nicest lot you can without paying an extra lot fee.  End of the month is a good time to be in there.  They may not have hit their monthly quota and the builder's agent will be more pushy with the builder to get things through.

3. Above advice from another is really good.  You need to go at least 3 times a week.  Builders use all kinds of contractors.  Some good some bad.  You need to see everything, because once that drywall goes up you have no idea what they screwed up behind it.  I would suggest having a home inspector go by twice.  Once after the framing, electrical, and plumbing are up (before drywall).  Once at the end of construction.  don't let the builder get away with ignoring anything they find.  If the home inspector thinks it's an issue, it goes on the list for the builder to fix.  If you have things like nail pops, don't let it slide.  The builder needs to fix those.  be tough on them. 

It's not a terrible process, but you have to be tough every step of the way through it.  
Very good post.

I've done about a dozen build jobs for buyers. The only one that reduced price was because they only had a few left in that community and wanted to move sales team to a newer community.  Most builders have incentives.  Could be design room credits, closing costs credits, etc...  Have your agent call and ask about what they are offering. No ask. No get.

And at least 3 days a week for sure. Question anything that comes up that you think is not right.

Also make triple sure that the design upgrades you want are on the contract.

 
If we go this route we are all covered on the stopping by daily thing. I’m a former home inspector and former construction supervisor so I know exactly what kind of subs these builders use and what I’m getting into. I am these builders worst nightmare. I will be all over them and thy won’t know it until they start production. 

We we are leaning on just getting the bump outs and added square footage, recessed lighting and getting no upgrades.  I’ll just bring in my own subs after for the solid surface counters and tilework after they shove in the builders grade crap. 
Wouldn't it be cheaper to just delete those items from the builder's contract than to pay for them and then pay to have them torn out for the good stuff?

 
Wouldn't it be cheaper to just delete those items from the builder's contract than to pay for them and then pay to have them torn out for the good stuff?


your take seems logical to me too.
Are you allowed to do that? I assumed most builders don’t or won’t let other subs in their job sites. They need to pass the county inspections before that can happen, right? 

Were talking a large developers, Beezer homes in this instance.

Im not even sure we’re going the new home route but I’m gathering information now. 

 
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Are you allowed to do that? I assumed most builders don’t or won’t let other subs in their job sites. They need to pass the county inspections before that can happen, right? 

Were talking a large developers, Beezer homes in this instance.

Im not even sure we’re going the new home route but I’m gathering information now. 
yeah- they need to have electrical and plumbing inspections before closing the walls up. 

but that shoudln't affect finish work like tiles and counters. my DOB doesn't know or care what the finishes are. but like I mentioned, this builder stuff isn't my world- so I'm just operating at best-guess "logic". Given that I'd imagine that if you presented different finishes, your builder would be happy to install. dunno about bringing other subs in though... might void their warranty. 

 
Your FIL just made free money.  He won't have to do much of anything except show up and collect a check.  Tell him you expect a really, really nice Christmas gift.

 
The best advice I can give (we built 3 years ago) and it was advice that we were given.  If you are going to cut any costs, make sure it's something you can replace/change later (cabinet hardware, fixtures, etc). 

DO NOT cut upgrades that are structural or would be a big expense to retroactively change later.  9 foot ceilings, basement walk out, 3rd car garage, recessed lighting, etc.  My neighbor cut the basement walkout from his build and hates himself for it.

Unless you really want to do a lot yourself (hardwood, tile, counter tops), just have the builder do it.  Trust me.  It's not worth the hassle.  The whole point of building a house is so that it's move-in ready from Day 1.  Otherwise, buy a fixer upper.  Unless you just absolutely hate all of the options the builder has for finishes.

ETA: We had a really good builder with a huge showroom for selections (eg - ~40 types of hardwood), so YMMV.

 
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I’ve worked with a GC who does imaculant work, he’s also insanely expensive. He’s probably the type of guys you’re dealing with. It’s fun to work for and with good contractors like that. I’ve seen the worst and I certainly appreciate it.  

We are very early in the process so we will look at all options. I’d love to work with a custom home builder but the wife needs convincing. 
We moved into our custom built house in November of 2017.  Overall it was a very good experience they key is getting a good builder.  Our builder has been around for over 20 years and did a great job walking us through the process and had an online calendar with all of our numbers so we can see exactly where the cost was and what percentage of completion it was at.  Also very helpful they had common upgrades built into the initial quote so we were only a couple of $1,000 over and that was due to us making some changes.  We recently had our 1 year warranty walk through and they came back and fixed a few dry wall cracks and some nail pops that happen as a house settles.  Our house wasn't cheap but not crazy expensive either.  I'd definitely build again (if necessary) based on the experience we had.

 
The best advice I can give (we built 3 years ago) and it was advice that we were given.  If you are going to cut any costs, make sure it's something you can replace/change later (cabinet hardware, fixtures, etc). 

DO NOT cut upgrades that are structural or would be a big expense to retroactively change later.  9 foot ceilings, basement walk out, 3rd car garage, recessed lighting, etc.  My neighbor cut the basement walkout from his build and hates himself for it.

Unless you really want to do a lot yourself (hardwood, tile, counter tops), just have the builder do it.  Trust me.  It's not worth the hassle.  The whole point of building a house is so that it's move-in ready from Day 1.  Otherwise, buy a fixer upper.  Unless you just absolutely hate all of the options the builder has for finishes.

ETA: We had a really good builder with a huge showroom for selections (eg - ~40 types of hardwood), so YMMV.
Good posting though depending on the layout of your house a basement walkout may or may not be necessary.  9 foot ceilings are a must and I agree on everything else here.

 
My BIL being a plumber who works in new construction, I have this advice. One builder in my area does anything and everything to cut costs. 

In my area of Minnesota, not sure about other areas, code is not 18” for walls, it’s 21 or 24 (I forget). This builders walls are all at that wider spacing for studs. They also go with the widest door joists allowed by code. So their homes have bouncy floors too.

This builder also instructs plumbers to save every inch of pipe humanly possible. For instance, the PVC pipe for the furnace, if it saves a few inches of pipe, send it out the front of the house instead of the side or back. Looks be damned.

So, when choosing a builder, check out the models and measure the stud walls to make sure they are 18” and check for bouncy floors. And if you know anyone in the trades, or an inspector, talk with them as well.
This x 100.  Electrical shortcuts as well.  The GFIs in our master bath are wired to a GFI in the downstairs guest bath of all places.  Guess where all the hair dryers and curling irons are?

 
Afternoon, Were looking to move and have our eyes on a new home development still in phase one. We spoke to another couple who bought and they gave us some input. I asked how firm the builders were on the price and they said they would work with you/you could bring it down a little. I know all about stopping by and hiring inspectors during the building process, what I would like is some advice from others about negotiating with the builders. Ill hang up and listen. Thanks in advance. ETA - We have an agent (my FIL) and we let the builders know.
What do you and your wife do for a living?

 
STEADYMOBBIN 22 said:
Wouldn't it be cheaper to just delete those items from the builder's contract than to pay for them and then pay to have them torn out for the good stuff?
  

your take seems logical to me too.
Are you allowed to do that? I assumed most builders don’t or won’t let other subs in their job sites. They need to pass the county inspections before that can happen, right? 

Were talking a large developers, Beezer homes in this instance.

Im not even sure we’re going the new home route but I’m gathering information now. 
No offense, but which is it? You’re a former construction supervisor and home inspector or you’re going to waste possibly thousands of dollars installing and immediately replacing brand new low grade fixtures? Again, no offense, but I don’t think you’re as big of a nightmare as you think.

 
Your FIL just made free money.  He won't have to do much of anything except show up and collect a check.  Tell him you expect a really, really nice Christmas gift.
Yeah, I used to have my RE license and he’s been dont it for 30 years. He will give us a good chunk back towards the house. He’s an awesome guy. 

 
doowain said:
The best advice I can give (we built 3 years ago) and it was advice that we were given.  If you are going to cut any costs, make sure it's something you can replace/change later (cabinet hardware, fixtures, etc). 

DO NOT cut upgrades that are structural or would be a big expense to retroactively change later.  9 foot ceilings, basement walk out, 3rd car garage, recessed lighting, etc.  My neighbor cut the basement walkout from his build and hates himself for it.

Unless you really want to do a lot yourself (hardwood, tile, counter tops), just have the builder do it.  Trust me.  It's not worth the hassle.  The whole point of building a house is so that it's move-in ready from Day 1.  Otherwise, buy a fixer upper.  Unless you just absolutely hate all of the options the builder has for finishes.

ETA: We had a really good builder with a huge showroom for selections (eg - ~40 types of hardwood), so YMMV.
Thanks! Yeah this is what I was saying above, if we go new we will go for the most square footage and recessed lighting but stay away from all the other upgrades. 

The high ceilings are a must and one of the reasons we aren’t staying in our current house. (Schools being the biggest reason)

 
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Pipes said:
We moved into our custom built house in November of 2017.  Overall it was a very good experience they key is getting a good builder.  Our builder has been around for over 20 years and did a great job walking us through the process and had an online calendar with all of our numbers so we can see exactly where the cost was and what percentage of completion it was at.  Also very helpful they had common upgrades built into the initial quote so we were only a couple of $1,000 over and that was due to us making some changes.  We recently had our 1 year warranty walk through and they came back and fixed a few dry wall cracks and some nail pops that happen as a house settles.  Our house wasn't cheap but not crazy expensive either.  I'd definitely build again (if necessary) based on the experience we had.
How did you find your builder? 

I don’t like mass builders but the small guys scare me too. 

 
No offense, but which is it? You’re a former construction supervisor and home inspector or you’re going to waste possibly thousands of dollars installing and immediately replacing brand new low grade fixtures? Again, no offense, but I don’t think you’re as big of a nightmare as you think.
I’m not sure what the last line was supposed to mean! 

I did home inspections from 99-2010, Supervisor for 7-1/2 years.

I know how buildings and houses are constructed, I’ve never worked with a new home builder on the negotiating aspect.

Look, I’d love nothing more than to bring in my own cabinets, tilework and flooring but from what I know and why I asked above, these larger builders won’t allow you to just bring your own crews onto their job sites for many reasons including liability. 

I didn’t mean to imply that I’m going to have a house built and then immediately start tearing it apart before we move in, I mean we would just get the base selections and systematically replace things as we go along/over time.

 
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Whereabouts in Maryland are you building?
We really like Clarksville and the Schools there. 

That’s the problem, there are not very many new home builders in the areas we like. 

I would love nothing more than to move into a big sprawling neighborhood with cul-de-sacs, sidewalks and a centrally located pool with basketball courts volleyball courts and the like, but they don’t really do that kind of stuff anymore. 

 
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