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tracik3

builder loan questions

tracik3
11 years ago

We were just going over the list of costs and were wondering if some of these are normal.

1. we pay $325 for a port a pot for the contractors?

2. the builder is getting a loan for construction and we are buying house from him. We have to pay the interest on the builder loan until we actually buy the house?

3. We pay the closing cost on the builder loan?

Thanks so much!

Comments (13)

  • whallyden
    11 years ago

    All three of those would need to be paid for one way or another.

    Under our fixed fee contract, I'm being billed for a port-a-potty, paying interest on the construction loan and responsible for closing costs.

  • nini804
    11 years ago

    I think $325 is pretty good for the whole build for the potty...and that is great that the builder is getting the construction loan....you'd be paying the interest and closing costs anyway if you had the loan. Maybe there is a con to this scenario, but I can't think of one.

  • Beth Parsons
    11 years ago

    We, too, have a fixed fee contract, carry our own construction loan and are responsible for paying for each and every cost associated with the build, including the portable toilet. I think it's pretty par for the course. :)

  • brickeyee
    11 years ago

    One way or another those items must be paid.

  • agentslim
    11 years ago

    We are paying for the toilet too, its fairly common.

  • gaonmymind
    11 years ago

    Make sure the extra costs are within the purchase price and not addition to. Everyone pays for this stuff but it should be under the total purchase price umbrella.

  • pbx2_gw
    11 years ago

    Strange but we had noticed there is no don john on our build.... No stipulations or charge to us in the contract either.

  • brickeyee
    11 years ago

    "Strange but we had noticed there is no don john on our build...."

    Sounds like a contractor thumbing there nose at OSHA.

  • angela12345
    11 years ago

    Yep ... Make sure the extra costs are within the purchase price and not addition to. Everyone pays for this stuff but it should be under the total purchase price umbrella.

  • User
    11 years ago

    You did not say what kind of contract you have with the GC but whatever the case you would pay directly or indirectly for the portapotty unless you have an alternate facility available.

    You pay for everything used on the site that is not included in the GC's normal overhead cost. Do you think he owns one of these things and a trailer to bring it to your site and can dump it legally? Be happy he hasn't added a markup to the cost of this item.

    The financing cost is similar. That cost must be paid for by you one way or another and it can't be added to the GC's overhead so it is a separate line item. Any pass-thru cost that is not marked up is an advantage to you.

  • tracik3
    Original Author
    11 years ago

    We are paying him 10%. What ya'll are saying makes sense. I guess I just never thought about some of these things. We did also notice that he was charging us 12.5% when we negotiated 10% spoke to him this morning. He said it was an over site. And also we paid a draftsman for the plans and he had a $912 charge on there for plans, also an "over site". So, we are suppose to be signing the contract at the end of this week. We are going to be sure and go over it really well before signing.

    Some things we were surprised at how cheap it cost and others at how much it cost.

  • angela12345
    11 years ago

    Tracik, when you say you are paying him 10%, that is 10% on what ... the original quote or actual costs during construction ?

  • PRO
    Window Accents by Vanessa Downs
    11 years ago

    Please be careful - sounds like you are going to have to keep a close eye on his charges to you if he's already making "oversites".

    There were costs we had to cover that we were unprepared for (we'd never built before and we did a cost plus build and these were items not included in our estimate.)

    Fee to set up temporary electric & water meters, monthly fee for the big garbage bin, monthly fee for porta potty, blueprint fees, custom mailbox with light that is mandatory for the neighborhood, and the list could go on!