Tuesday, January 27, 2015
Know Your Numbers
For anyone going through this process of a new home, it is an exciting time for sure. We have one recommendation and that is that you need to keep track of the changing numbers from the initial meeting from all the options you may choose, to flooring, guardian, any custom work you are contemplating... Also, ask detail about the appliance packages and any differences between the standard package and upgrade since the standard most likely includes a slide-in stove and if you want a cooktop then you could be out of luck..know your numbers because you can get lost in all the changes and additions, and always push to have the sales rep to give you the net sales price not just the gross.. Truth be told, the more you know your net number the better you are in tracking to the right number you really need to know.
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I completely agree! I have kept every cost estimate sheet, option list, flooring selection, etc. from the very first time we met with our SR and that has proven to be most helpful! Even if you change models, add/delete options it is imperative to keep everything! We ran into an issue with our SR who told us there was a $5500 lot premium on the lot we chose but it was being waived… Weeks later when we decided on an exact floor plan and features she slipped in the premium. (Also increased the sales price of the house, like we weren't going to notice! Ha!) After about a month and a half of back and forth and getting the district manager involved, we finally got the issue resolved. Thankfully we kept the original cost estimate sheets that did not show a lot premium. (Plus our realtor was a witness to her stating the premium would be waived on the lot.) So yes, to those building or considering to build, KEEP EVERY PIECE OF DOCUMENTATION YOU RECEIVE! It is so important in this process!
ReplyDeleteWow, did your SR argue that he/she never waived that lot premium?!
ReplyDeleteWhat we ran into was that we were not being provided a net number. Just gross. And the gross does not help the Buyer to ensure the numbers match from the MSS. We are committed to the house but we have not signed until we are provided with net numbers. We want to ensure there are no hidden costs. Sure enough, there was confusion on our flooring numbers that my husband caught. It's being looked into, but again, just wanted to write a post to let others know to do their due diligence on keeping track of numbers. Request the net number because things can easily be missed with the gross number. RH really needs to offer this for Buyers before they sign. Also, we had hoped to just get no appliance package & buy our own. We found out the standard needs to go in & they won't just cut a part of the granite for a cooktop stove. And standard is a slide-in. So, we were forced to get one of the three kitchen appliance options that offered the cooktop. We were very disappointed in this because it inflates your price between 4-7K!! It really shouldn't be that hard to make an option to have a cooktop mold cut out for the Buyer. So now we had to increase our house cost with their inflated pricing for appliances. This was never explained in our initial meeting. Furthermore, the systems SUCK. We had a 2 hr appt that could had been 1 hr but the RH system kept booting the SR out and wasn't adding & deleting options. Definitely needs better process improvement on the system end...and in the end we are still waiting for the Media room in the basement to be removed. It wasn't allowing our SR to remove it. So, we are way beyond the 21 days at this point.
I couldn't agree more with your post to keep checking the numbers. Our SR is really friendly and we get along with her great, but there were a few times that we had to push her to correct our closing costs credit. We negotiated $15,000 in closing costs when they were only offering $10,000 in our community, and we had multiple forms, including the original purchase agreement, list $10,000 until we made them correct it. I'm sure if we hadn't noticed, we would have only ended up only getting $10,000.
DeleteWe also had the same issue with the computer program at multiple meetings. For our 30 day change request (which is the limit in our area for changes), we even had to leave without all of our changes in place, because the system just wasn't working. Our SR emailed us the next day with all the correct changes and we signed off after careful review. I wouldn't worry about being slightly over your change request time limit unless they started building.
Based on info I received from a VERY reliable source, Ryan has a finite number for the profit percentage that they want(read as mandate) to maintain. Every penny that they are supposed to make on an option has been carefully bean counted. They only have a small buffer for incidentals. So if a SR in the process of negotiating your price miscalculates or forgets to update a number based upon an internal change, they are on the hook for that and it can get very uncomfortable for them. Also, not everyone is as organized as you would expect them to be, so that can be another leak in the dam. It sounds like she got called out internally for removing that premium and wasnt very forthcoming in cleaning up her mistake.
ReplyDeleteOn my build, I was taken care of extremely well and benefited probably close to $15k in off-the-books perks. A lot of that had to do with the way I managed the relationship with my SR and PM. Dont come off as SUPER nit picky or whiny as that will make them less likely to be flexible when it comes to a last minute preference or snafu on your part. Be as cool and calm as you can, bring donuts to your morning meetings, etc and that will net you the things you want in the long run.
While seeing your house in the build process. Dont feel its necessary to tell your PM about every tiny flaw. Things like how the unfinished drywall shows seams or why is that pipe crooked, will only create a bad vibe with your PM and that is something you definitely want to avoid because your SR deals with numbers which are black and white, but your PM is the one who can help to make nuances happen behind the scenes.
Forgot to add that something you should really look out for are walls that arent straight. I found a few glaring angles in my place that they were very happy to take care of. My friend Sgt. Rich and I put together a nice list of woulda-coulda-shouldas, check it out @ http://myryanhome.blogspot.com/2013/02/its-that-time-of-year-to-review-hints.html
DeleteAlso, at some point your counters, sinks and tubs are going to have their protective covers removed. Pay attention to scuffs and abrasions and have them come in and resurface them if you see swirl marks, etc.
Most importantly, dont fill out the survey until you are completely satisfied with the build quality. As this is the item that helps PMs keep their job. As it going up, I can help with some Ravenna specific tips.
Sorry Steve, I'm not the type to brown-nose. It's their job. Period. It's our house. Period. We can try and make requests as much as we want. We are paying good money for it. If I find any requests I made that were not granted (which this hasn't happened to me) & I see other neighbors getting it after the fact, you better believe I will say something. The way you suggest reads to me that the SR & PM can pick & chose who they will "favor". That just doesn't sit well with me & I can't think that's happening a lot with RH or Buyers would be reading more about this & this could make RH suffer in the long-run with supplying perks to one Buyer over another.
DeleteI wish I had my project team members come to me with donuts when I was in Pharma to get a deliverable met. I just don't do that style. This is a working relationship. You can be friendly but being best friends with your SR & PM will just make you seem not as "serious" when it's time to make demands/requests because you've already established a more "flexible" relationship. Just my opinion and everyone operates differently but when I'm paying over a half million dollars on a home , I'm making sure I'm the boss of my own home. ;-)
:) No apologies needed, it was just my approach...you know, honey vs. vinegar. Im not saying to let things slide that are obvious flaws (like your accounting issue) but the way the build process works just isnt as perfect as people think it is. Some people have even gotten banned from visiting the build without supervision, which is completely within their rights because they own the house before you do, safety, liability, etc. If youre a daily visitor to the build like I was you will see a lot of in transition work that wont look pleasant but it will be taken care of. So to that point, it really wont benefit you to go out of your way to point out the fact that there is some drywall mud on your counter. It will be cleaned before closing. I bought the same house you did so I'm familiar with how much it costs. I'm just trying to help you manage expectations so that it isnt frustrating which it very easily can be.
DeleteMore to my point is that Ryan is not a custom builder. Every 2x4 and foot of trim has been accounted for to give you the model you chose. Yes, this is a business transaction, and with that premise, yes, you will get your house and it will look like its supposed to and you will get what you ordered. My approach to being "serious" actually got me everything that I asked for in addition to some preferential things, way after the fact.
Perks produce an uptick in satisfaction. Just trying to help you get yours. Good luck.
Sterling-
ReplyDeleteIf you read through our blog you will see that WE were the husband and wife team from hell. We were lied to early on by our SR and that left a nasty taste in our mouth. She tried to be buddy buddy with us in the beginning but in the end they are NOT your friend. Demand everything in writing and triple check it. If you see mistakes no matter how small call them out. Do not let them cut corners when you are giving them several hundred thousands of dollars.
I would never kiss ass for some freebies. I also wouldn't turn cheek if I saw something that was wrong with this house. We wanted them to know from the jump that we meant business and would not tolerate lies or inconsistencies.
We brought an independent home inspector.
If you read our blog the worst part was the PM trying to slide a cabinet through that wasn't flush. He knew from the beginning that it wasn't. He also knew that we were doing after market granite. He never said anything. Well, when the inspector caught it the PM ADMITTED he knew it was off and didn't want to fail his QI inspection "cause he didn't have another kickplate to fix it." He essentially could have cost us a ton of money with an unusable slab of granite but we were able to stop the fabrication and figure out a remedy. All things we SHOULD NOT have had to do.
So be proactive. Who cares if you are nit picky or whiny. You have to deal with the house for the next 30, 40, or 50 years. Ryan will be gone from your sub and who will hold your hand when you have issues? Your family. Not Ryan.
Sorry to go off on a rant. We have had a mediocre (at best) experience with a lying salesperson and a PM(who for the most part I respect and trust except for his one lie) in the end you have you and your chosen "army" by your side. In our case our "army" was a lawyer and a home inspector!
Good luck!
Wow! Sounds like I had a rare experience, no lies, no deception, got exactly what I wanted and then some. Come to Virginia! :-)
DeleteSteve, we'd love to. Ha. That's what I have seen, is that there can be very varied experiences among different communities. The one thing I will say, is despite some iffy drywall work and other small issues, our house is overall solid and we live it. I would say we were polite but firm. We held them accountable, but usually did it in a nice way. As an example, we brought the bricklayers coffee and doughnuts for when our brick started going on. We know a lot of the Trades get dumped on, and these guys were extremely appreciative. We were constantly on scene and were aware of everything that was going on. We stayed very involved, but let them do their thing, but we interjected when there was something we didn't like. We also did compliment when it was warranted too. I wouldn't say we were ever rude or lost our cool, but they also knew we weren't a couple to mess with. It's very important to keeps tabs on the whole process, from building, to pricing all the way through to the mortgage. It's your house, and you stay in the driver's seat.
ReplyDeleteThe financials were not a problem for us and so far the PM has been great. But, we are certainly not qualified to know good construction from bad. So, we decided to hire an inspector who will inspect the house for pre-drywall, final walk through and the 11 month review. Best of luck to everyone!
ReplyDelete