Anderson Homes, LLC

For those of us in the real estate and construction business, change orders and extras are part of life.   Almost everyone wants to change something, such as fixtures, tile, windows, counters or cabinets, or trim.   Building a house is the biggest project most of us will ever assemble.   Of course, there will be some changes and course corrections.

Changes are almost guaranteed in any home building project, and so it is an important issue that should be considered when hiring a home builder.   Unfortunately, it’s one of those issues that most people don’t address adequately in their initial meeting with their builder.

Before we go any further in this discussion, I want to add this little note that I hope will capture your attention.   Almost every builder or his salesmen gets good at persuading you to sign a contract.   Let’s face it, they’re in business to make a buck, and in order to do that, they must get good at selling themselves and answering all your questions with the right answers.   If they were not doing that well, they would have been out of business long ago.   Included in this group of persuasive builders and salesmen are 1.) good builders, 2.) mediocre builders, and 3.) many not-so-good builders.   (How’s that for diplomatic!)   What is the point?   Clearly, it is your job to discern the good from the bad and the ugly.

Back to the subject at hand – extras and change orders.   It came to my attention some years ago that some builders take advantage of their customers when a change is requested during construction.   I heard a story recently of a change order and the builder wanted $11,800, but the owner found out he could hire an independent contractor to do it for $3,800 (which still had a profit built in).

I heard of a change order for a window that should have been about $800, but the builder wanted the homeowner to pay an additional $6,000.   Many years ago a client shared a story with me about an elderly couple in their 80′s in Sequim who hired a contractor to build a deck around the back of their home.   During construction, they decided to have the builder make a change, extending the deck to the ends of the house.   The builder did it, and then told the couple they owed him another $80,000, in addition to the original contract price.   I wish this couple had come to see me before they paid the $80,000.   They did not want any conflict, so they just paid it.   There are many examples like this out there in the real world.

See, once the builder has your signature on HIS contract, and construction is proceeding, he’s got you with respect to any change orders.   Now that is perfectly okay if you have a fair and reasonable builder who will not gouge you for any changes you want to make, but if your builder uses change orders as an opportunity to pick up a big profit, you are up the proverbial creek without a paddle.

This is a very real issue.   It should be a major issue when you hire a builder.   Just be discerning here, because words come cheap now in sales.   Honesty and integrity are a bit rare hese days.   Did you notice?

Possibly Related Posts:

• Home Builders – Change Orders and Extras