Thread: Inside dealing?
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thomas rush thomas rush is offline
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Default More about this house

wrote:
Thanks, Thomas, for your prompt reply. This is in response
particularly to Thomas, since he said he lives in NW Harris Co.
(Anyone else is, of course, welcome to reply, and you can either
reply on the board or E-mail me.) The builder is Pulte, and it's in
Seven Meadows in South Katy. It's in Cinco Ranch, and it seems to be
an in-demand neighborhood.

We were told that we'd receive a limestone elevation (everyone on that
street receives one, as it faces Fry Road). (That elevation has now
been put on the house.) We were told that elevation would be free
(value of $10,000), and that we'd receive an additional $5000 off for
going through Pulte's mortgage company or paying cash (which we intend
to do, if we purchase the home).

We were then led to a model home, and my wife asked the salesman if
they're going to use the same materials that are in the model in the
home we are considering. He said they'd use materials of equal quality.
In the model, they showed us a nice dark granite countertop. We asked
if we'd be getting that. They said that no, the model we'd be getting
(the Thoreau) had a "tan" granite countertop. We were shown nice cherry
cabinets, but alas, they were out of the cherry; we'd be getting
maple. (He said that maple held up better than cherry anyway.) And the
closet shelves they had were wire shelves, just like we have in our
apartment. The salesman tried to hang from them, and show us how
sturdy they are, but they bent under his weight, and he's not a very
big guy at all And last time we went, we saw that they'd already put a
cheap-looking front door on the house, even though he'd said nothing
previously about a door having even been ordered. Also, the carpet in
the model home was nice and thick and plush, but the carpet sample that
he showed us was this rough-feeling thin carpet made of recycled Coke
bottles. It doesn't take an expert to evaluate the quality of the
samples vs the quality in the model home. It's plain common sense;
people can tell from looking at and feeling these materials. We said
that since, if we took the home they're building (since we like the
direction it faces and everything), we'd have to rip some of THEIR
stuff up and put in our own stuff (and the salesman said that it'd be
cheaper to do that anyway), we'd need a discount off the price of the
house. The salesman said ("I think we can take a few thousand dollars
off").

When we got back to the office, he said, "The only way I can take any
off the price of the house is if you use a realtor. Now, do you have a
realtor?" We said. "No". He said, "I know a realtor who would take
the normal 3% of commission, and then return 1% of that to you. He'd
also return the $2000 bonus (from our marketing fund that we use for
realtors only) to you. That should be enough to compensate you for not
getting exactly what you want, and you should be able to make any
changes." However, they'd offer this deal to anyone who doesn't have
a realtor; therefore, this is not really compensation for inferior
materials. There is a huge gap in quality between the materials they
showed us in the model home and the samples they showed us, even though
the materials they're putting in the house we're considering are
supposed to be upgrades, and we feel they're charging us an "upgrade"
rate for standard features.

We wonder if they'll continue to cut corners, even after we've signed
the escrow contract (which we will this Friday)..

Does this sound honest? We chose Pulte because of their reputation;
we've never purchased a house before.


I look at bbb.org, the better business bureau and find Pulte has
an... well, you can look it up, too. They have a good reputation
with exactly whom?

There are real advantages to buying an existing home. You know
what's there, can make use of a real estate agent to help you
understand the neighborhood and the builder's quality there as
determined by lots of residents.

You know... I can pretty much guarantee that 15 - 25% of all
possible homes you could look at will face the same direction
as this home does. I can guarantee you can find another floor
plan that meets your needs at least as well as this one does.
There are lots of homes in nice subdivisions in Houston, and
many of them built in the last few years.

Keep in mind that builders have been making a bunch o' money
for a few years now. And their cost structure probably reflects
the good times. Now when the market is slowing down and costs
for raw materials are rising, they're being pinched. Can't sell
homes because too many used homes are on the market cheaper,
can't build a home cheaper because raw materials and overhead
are higher... what would you do? You'd find a way to put
cheaper 'stuff' in the house, so it still looked good, on the
surface at least, no?

Suppose you went to an agent (and make sure you pick one who
is experienced as a BUYER's agent, and that you're signing an
agreement with them to that effect) and asked to find 5-year-
old homes in a neighborhood not too far from this one, in your
price range, with your requirements. What if he or she found
you just what you wanted, and all the landscaping was in
place, and the builder had a good rating with the BBB, and
your neighbors were happy with their homes? Heck, what if
you went looking for foreclosures, or homes about to be
foreclosed on that you could save the owner from that trauma?

Or, sure, you can sign a commitment to pay someone a couple
of hundred thousand dollars when you're already worried about
the quality of their work, their honesty, and their business
practices.