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New construction experience **Going for it!!**

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Xistaben2
New Contributor

Re: New construction experience **Going for it!!**

I'll have to check into that.  I have a "low voltage" to schedule, which I am not sure if that is separate from electrical.  I got the actual prices for the data runs and they are taking people to the cleaners.

 

They install RJ11 (telephone jack) as standard to the family room, kitchen and master bedroom, additional telephone jacks are $90 each.  The kicker is, they use Cat5e cable for those runs and for those who don't know, Cat5e is your standard ethernet wire.  They charge $115 per data jack (RJ45) and none come standard.  There is maybe a $0.30 difference in the price of the connector and each run is $25 more for the same cable.  I emailed the guy back and told him that I work in IT (which I do) and I asked him what the $25 upcharge buys me?  What's to stop me from having him run the $90 telephone jacks to all the other bedrooms, keep the ones that come standard, then switch them all out after close saving close to $200 (literally $2 per termination and about 30 minutes worth of work)?

 

He hasn't emailed me back, but he is out of his mind.

Message 11 of 34
Chickenpotpie
Frequent Contributor

Re: New construction experience **Going for it!!**

Nice! 

 

But if I can make one suggestion?  behind the walls, please no cat5e.  Go with cat6  or better to futureproof your house.  7 is whats available now, which automatically downgrades to 5 if needed.

Message 12 of 34
Xistaben2
New Contributor

Re: New construction experience **Going for it!!**

I've thought about that as well - pretty sure Cat6 runs are like $145 per run which I can understand an increase there because Cat6 is a way more expensive wire than Cat5e, but $145 is still an overcharge.

 

Future proofing with Cat6 should be sufficient as it is capable of 10Gbps (depending on how you terminate and length of cable (less than 160 some ft)) which should be enough for many years ahead.  In actuality, I don't need any RJ11 and I wish I could get a credit for not wanting them even though they come standard.  I would then take the credit and put it towards Cat6 which would be worth it to me.  I might ask him on that.

Message 13 of 34
StartingOver10
Moderator Emerita

Re: New construction experience **Going for it!!**

^^^ You are now seeing one of the downsides to new construction.

 

Extra's are expensive. Not necessarily because of the cost of parts and labor - but because any change is a hardship to a builder in that there are bound to be errors as it deviates from the norm so costs are based on actual costs + builders overhead + the probable cost of having to redo the change + profit and a discouragement (for lack of a better word) factor. Naturally, the builder's design center doesn't tell you that - but from a practical POV you are paying top dollar and more for the convenience factor of not having to mess with the change after closing.

 

If you can rewire at a later date for less money and less hassle then don't pay the builder for extras.  In general, if you can change something after closing it is better to do it later if you have the cash and the desire to do so. if you don't want to wait to make the change or it is difficult to change a particular component after closing, then go through the design center. This is a cost vs benefit analysis you need to do on your changes. 

Message 14 of 34
Anonymous
Not applicable

Re: New construction experience **Going for it!!**

What part of the country are you in that new construction semi-custom homes are coming in at $75 a sqft including an acreage lot?  I'm in Texas and we live in a small, about forty lots, dee resrticted acreage subdivision right now.  We bought our 3.36 acre lot in 2007 for $27K and built our 1685 sqft house in the fall of 2007 at a cost of $97 a sqft for $163K construction alone.  We are now looking at building a larger house, about 2600 sqft, on a new 1.36 acre lot we just bought for $68K in a much larger, about four hundred lots, acreage subdivision a few miles away.  The cheapest bid so far for construction alone is almost $130 a sqft.  With the lot and construction we are looking at $153 a sqft and you have to really keep tight reins on it to stay at that price.

Message 15 of 34
MTSN
Regular Contributor

Re: New construction experience **Going for it!!**

I'm curious how far out your close date is, and how far out are you able to lock in your interest rate? I'm in a very similar situation as you - looking at a new build, 6-7 months delivery time, but I'm unfortunately looking at a sell price of over $500k (for a 3 bedroom place - very jealous of your deal!). I can put down $50-$100k, but I'd prefer to put down as little as possible and keep the rest in savings/investments. 5% down like what you're getting sounds perfect, but I'd be worried about the cost of locking in a rate too early. I don't think interest rates have anywhere to go but up, and with the election coming and all the craziness in markets it's hard to say where they will be if I gambled and let the rate float. Curious how you're dealing with it and your time horizon. 

Message 16 of 34
Anonymous
Not applicable

Re: New construction experience **Going for it!!**

PenFed told me a while back I could get a six month or even a one year rate lock once construction starts.  I think they said 1.25 points for a one year rate lock.

Message 17 of 34
MTSN
Regular Contributor

Re: New construction experience **Going for it!!**


@Anonymous wrote:

PenFed told me a while back I could get a six month or even a one year rate lock once construction starts.  I think they said 1.25 points for a one year rate lock.


Wow that's expensive on a $500k+ property! It makes some sense though as it's fairly considerable risk to transfer for 12 months. 

Message 18 of 34
Xistaben2
New Contributor

Re: New construction experience **Going for it!!**

As far as the area, I will be building in a subdivision in phase 3 in semi-rural Georgia.  The land is under USDA if that is any indication.  The funny part is, I inquired about utilizing a USDA loan, but I make too much money.  It seems the cap is at like $83k a year...  So the people who qualify for USDA will have a hard time qualifying for the cost of the house and the folks that qualify for the house won't qualify for USDA.  Funny ol world.  Because I went with the elevation with bay windows, if I keep my budget at $300k, which I found will be doable, that puts me at $84.50ish a sqft.  Final sq footage in the plan is 3551.  Without the bay windows elevation, it is 3511.

 

I have design rescheduled for Monday, but they let me onto the online catalog to make a wish list.  House is at $283k, so that gives me $17k in upgrades.  The builder quoted me $10,000 give or take for 3.5" engineered hardwoods to cover the entire downstairs, wood stair treads and hardwoods for the upstairs hall.  If I go Monday and the materials are acceptable, I am without a doubt using $10k for that.  The other $7k I have planned out for kitchen cabinets, extra drawer space, upgraded marble in all the bathroom counters, cat 6 to all bedrooms and family room, wrought iron stair spindles and level 4 light fixtures.  Puts me right at $17k.  Also called about hidden costs of landscaping...  sod is provided in the cost of the house, so no extra, irrigation is my responsibility, which is fair.

 

I will have to ask my LO on when I generate lock.  It is def a concern of mine, but the est completion is January 31st.  They had to pull new permits, because they had plans to build a different floor plan for the lot before I contracted it.  Once they have that and my design appointment is complete, it's off to the races.

Message 19 of 34
Xistaben2
New Contributor

Re: New construction experience **Going for it!!**

Another update, had a long exhausting day of design today, but we got it all settled. Of course we went over budget (DW made sure of it haha), but not too bad. It was difficult to get the upgrades we wanted without having to upgrade other things as a prerequisite.

The big ticket items though were hardwoods on the entire first level, wood stair treads stained to match floors and the upstairs halls as hardwoods as well. We had to make some tile upgrades in the shower in order to get the frameless glass shower in the master, I ate it hard on that. In the end though, we went with ivory white cabinets full extending and dovetail. A soft gray granite in the kitchen, soft gray subway tile backsplash with white grout. I think it will look amazing when it is done.

Bathrooms we kept the secondaries the standard tile with the standard marble, in the master we put money into upgrades tile, a gray with carerra marble for the vanity counter. Some misc other things like flood lights and whatnot that nickel and dimed it.

End price for the house is $304,100.

Message 20 of 34
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