Posted by Mike in DE. on January 31, 2004, 3:12 am
I've been looking at new housing developments and one of the salesmen
told me he was the one who decides what to charge for lot premiums.
This guy was a jerk and I think he was just trying to sound important.
Is it true that the salesmen set the premiums or is this a decision
that is decided by someone else above him?
Not really a question of high importance, but I was curious.
Also, is it common to negotiate the lot premium or is this usually
taken at face value?
Thanks,
Mike
Posted by ameijers on January 31, 2004, 9:18 am
> I've been looking at new housing developments and one of the salesmen
> told me he was the one who decides what to charge for lot premiums.
> This guy was a jerk and I think he was just trying to sound important.
> Is it true that the salesmen set the premiums or is this a decision
> that is decided by someone else above him?
> Not really a question of high importance, but I was curious.
> Also, is it common to negotiate the lot premium or is this usually
> taken at face value?
What the heck is a lot premium? They tack on an extra fee for the 'good'
lots or something? All the buyer needs to care about is the bottom-line
cost. Prebuilt or built to order, have them cost out the lot/house/features
you want, and name their price. If the price they name is too high, make a
counteroffer. All they can do is say no, and they need you more than you
need them.
Personally, I'd shy away from a new development home. Heard too many horror
stories. If I had the money, I'd go with a custom one-off from an
independent. If that was out of reach, I'd go with an existing house
somewhere. But that is just me, YMMV.
aem sends...
Posted by v on January 31, 2004, 4:38 pm
On Sat, 31 Jan 2004 14:18:26 GMT, someone wrote:
>> I've been looking at new housing developments and one of the salesmen
>> told me he was the one who decides what to charge for lot premiums.
>>
>>
>What the heck is a lot premium?
I too once asked the same thing. Not a term I hear in my area. The
lot costs what the lot costs (if you buy a lot). The house & lot cost
what they cost if you buy a house upon completion.
I have been developing lots on and off for 20 years and never had
anything I called a "lot premium". What part of the country (assuming
its US) do 'they' do this, and how does it work????
Who the heck "sets" anything. They can ask, you can offer, the two
sides come to angreement or not. What is "set"????
-v.
Posted by D. Gerasimatos on January 31, 2004, 7:17 pm
>I too once asked the same thing. Not a term I hear in my area. The
>lot costs what the lot costs (if you buy a lot). The house & lot cost
>what they cost if you buy a house upon completion.
>I have been developing lots on and off for 20 years and never had
>anything I called a "lot premium". What part of the country (assuming
>its US) do 'they' do this, and how does it work????
I have heard this term here in California. It is used in new housing
tracts. All of the houses of a certain floor plan cost the same price,
but there are certain houses in the development that cost more because
of the lot. It might be the size of the lot (bigger) or that the lot has
a view. These houses cost more and the reason is that the lots have a
premium. There is (obviously) no reason the house itself costs more, since
it is identical to the others.
A buyer chooses his house and his elevation. He then chooses a lot. He
will be informed which lots have premiums and which are "standard".
Dimitri
Posted by Mike in DE. on February 1, 2004, 9:40 am
Exactly. I am in New Castle county Delaware (Northern Delaware). Not
all builders do this. A perfect example is this devoplment I just
visited, thier lots rangs from .20 of an acre to .40. They want
$30,000 extra for thier .40 acre lot.
dim@soda.csua.berkeley.edu (D. Gerasimatos) wrote in message
> >
> >I too once asked the same thing. Not a term I hear in my area. The
> >lot costs what the lot costs (if you buy a lot). The house & lot cost
> >what they cost if you buy a house upon completion.
> >
> >I have been developing lots on and off for 20 years and never had
> >anything I called a "lot premium". What part of the country (assuming
> >its US) do 'they' do this, and how does it work????
>
>
>
> I have heard this term here in California. It is used in new housing
> tracts. All of the houses of a certain floor plan cost the same price,
> but there are certain houses in the development that cost more because
> of the lot. It might be the size of the lot (bigger) or that the lot has
> a view. These houses cost more and the reason is that the lots have a
> premium. There is (obviously) no reason the house itself costs more, since
> it is identical to the others.
>
>
> A buyer chooses his house and his elevation. He then chooses a lot. He
> will be informed which lots have premiums and which are "standard".
>
>
> Dimitri
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> told me he was the one who decides what to charge for lot premiums.
> This guy was a jerk and I think he was just trying to sound important.
> Is it true that the salesmen set the premiums or is this a decision
> that is decided by someone else above him?
> Not really a question of high importance, but I was curious.
> Also, is it common to negotiate the lot premium or is this usually
> taken at face value?