Troubleshooting Common Home Buying Problems
Building a house or buying one under-construction is quite an exciting experience as you get to make it your own. At the same time, there are several factors to take into consideration, and one of the most crucial factors is the financial aspects related to the completion of a project. Unfortunately, a lack of knowledge here can cause more damage to your prospects of completing your home quickly and within budget.
As experienced custom home builders, the team at Farwes Homes Ltd. has come across a host of client issues that could have been avoided if the client was more informed about the process and situation they suddenly found themselves in.
To ensure that there is more awareness created, we have listed three of the most common home buying problems and how to troubleshoot them.
1. Misunderstanding the difference between how an allowance works compared to an upgrade item.
When it comes to buying a home, all too often as a first-time customer, you may not understand how an allowance works compared to an upgrade item. To simplify it, when it comes to building, an allowance is similar to what a parent (the builder) would give a child (you) at home. The child gets a certain amount a week to save and use it as they wish. When the time comes to purchase an item, they do so with the money they have saved. The parent will not buy the item that the child wants. This means that if you want a specific item for your house, you can purchase it using the allowance provided. What you can not do is ask for an allowance and also insist that the builder buy the required item.
An upgrade, on the other hand, simply means that the item you want to purchase for the house is better than the one that the builder usually uses in their construction. In this scenario, you have to pay the builder the difference between the cost of the item they would typically purchase for you and the cost of the item that you want if it priced more than what is allowed.
2. Expecting a “Builder’s Package” to be installed but also wanting to purchase material using your allowance.
A situation like this usually leads to a stand-off and ill-feelings, which is why it should be avoided. Similar to problem number one listed above, you cannot ask for allowance and also tell the builder to purchase the upgrade items you want. For example, a customer is given a choice between a lighting allowance and receiving the “Builder’s lighting package.” The customer chooses to purchase his own using the allowance. However, he insists that the “Builder’s lighting package” must be installed as well. This situation contravenes the contract and forces builders to involve lawyers so that the system can be correctly explained to the customer. This outcome is both time-consuming and delays the project’s completion.
3. Failing to understand that an upgrade costs more.
To ensure your home décor is one of a kind, you may want to use unique elements. This can cause you to drift from an allowance to an upgrade item. When changes like these occur amid a project, you may not realize what happened and be under the impression that your allowance will cover your new needs. But, to acquire an upgrade item, it costs extra, which can cause issues. So, to prevent this from becoming a problem, builders often have customers pay for the upgraded item as soon as they get a price on it. Otherwise, the item is not purchased.
For more information on challenges faced when buying a home, reach out to the Farwes Homes Ltd. We provide you with a custom home builder in Port Hope, ON, and help you construct the house of your dreams. When we work on a construction project, we are transparent with our processes and costs so that you are aware of what you are getting into. After all, your house is the largest investment in your life, and you want the security of a well-built home with superior quality and excellent resale value.