Among the more appealing features of new construction is the chance to customize or add - a fireplace here, a skylight there, a door shifted three feet to accommodate grandma's couch. Builders call them options or extras.
The trade-off, however, is the sense of betrayal that often sets in when buyers feel that the builder is luring them into taking these upgrades or customized touches as a way to squeeze out more money.
For example, some developers cram the model unit so full of tantalizing extras that it is tough to imagine that unit stripped of those options.
It's easy to overspend when you don't know what is included and what is not. Signs are supposed to be posted. But frequently they are missing or barely visible. And by the time the buyer realizes that the marble floor in the bathroom, for instance, is not part of the basic package, it's disappointing to think of living without it - especially since this kind of enhancement, negotiated when the contract is signed, can normally be included in the mortgage, avoiding any additional cash outlay.
In other instances, buyers become outraged because a builder will demand cash for these options up front, which seems unconscionable to them, given the thousands of dollars they are forking over and the 10 percent cash deposit they are putting down.
A deeper understanding of the ''extras game'' is clearly warranted before any buyer gets down to serious negotiation.
The main reason different attitudes prevail is that developers use extras for different purposes. In a softer market a builder may toss in an extra or two as an incentive. When the market is strong, extras are often looked upon as a way of enhancing profits.
Further confusing the issue is the fact that some builders consider extras merely as annoyances that slow down an assembly line. So instead of encouraging the buyer, they give him excuses why they can't move that door, for example. Other builders may have the sort of setup that makes it easier to accommodate individual differences.
Buyers should decide whether they are willing to pay more, if a change or addition seems enticing, and how to cut the best deal. Checking with the lawyer they intend to use for the transaction is often an excellent way to gain ideas and plan strategy.
For example, before assuming that a fireplace will cost $1,500 more it pays to try to see whether it may be included. The higher the price, the more likely the builder will be to throw in some customized changes free of charge.
Changes or additions might be traded for an agreement to put down a sizable amount of cash, thus avoiding mortgage delays.
Options can also frequently be traded for a willingness to pay the full asking price. While it is usually impossible to get a builder to negotiate on the sticker price, he is often amenable to throwing in, say, an extra skylight or better kitchen cabinets - especially if the development is just getting off the ground.
Though a prime attraction of these extras is the fact that their cost can be paid out over 30 years, as part of the mortgage, a discount may often be negotiated if the buyer is willing to pay cash up front. If the builder wants $10,000 more for a deck, try offering him $2,000 up front and $7,000 at closing.
When adding options it is vital to make sure the contract clearly states that the item will be completed by the closing date or you might wait for months afterward. The contract should also include specific language. A deck, for example, should be described by its dimensions and type of wood.
Insisting on completion by closing also provides the buyer with leverage. For example, he can demand a postponement if the item has not been completed satisfactorily.
Since it is often nearly impossible, when walking through a model unit, to figure out what is part of the basic package and what might be considered an upgrade or option, it is extremely important to ask. If those details are overlooked the buyer may be dismayed when he discovers he is buying a no-frills home that bears little resemblance to the jazzed-up version that attracted him in the first place.
One final thought on extras: For the person or family trading down to smaller quarters - empty-nesters, for example - extras can sometimes make up the difference needed to bring the lower cost of the new unit closer in line with the sale price of the former family home. Doing so can lessen or even eliminate the capital gains tax that might otherwise have to be paid on the differential.
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