Howdy, Ags. So my wife and I are building in the hill country close to New Braunfels. We have finally finished our final home plans and the builder is sending the plans out for final pricing. I expect to get the final contract and pricing in around late November or early December.
However, we are extremely concerned with the supply chain and labor issues we are seeing and hearing about. There is also an escalation clause in the preliminary contract that I do not like seeing in today's economy. We would likely start the actual build around January or February. They estimate 10-12 months for the build to reach completion. So here are my questions:
1) What are the odds that the builder would take out the escalation clause? I am highly doubtful that they would, but does anyone have any information on this?
2) Does anyone that is in the industry have any general information and advice on this issue? Would you still build or would you hold off, and why?
The price has already increased $50,000 in the last 6 months. We do not want to sign a contract and then be hit with a $100,000 price increase in March if things in this country take a turn. I used to think once you sign the final contract then you would be locked into that price no matter what, but that clause changes everything.
I would like to point out that I bought a nice house in South College Station back in 2019 for a great price in today's market. We have no issues staying put and not building, so right now we are really torn on what to do since we do not know the future. But the house plan and lots we are building on are more of "the dream" place for us. Any advice is highly appreciated. Thanks!
However, we are extremely concerned with the supply chain and labor issues we are seeing and hearing about. There is also an escalation clause in the preliminary contract that I do not like seeing in today's economy. We would likely start the actual build around January or February. They estimate 10-12 months for the build to reach completion. So here are my questions:
1) What are the odds that the builder would take out the escalation clause? I am highly doubtful that they would, but does anyone have any information on this?
2) Does anyone that is in the industry have any general information and advice on this issue? Would you still build or would you hold off, and why?
The price has already increased $50,000 in the last 6 months. We do not want to sign a contract and then be hit with a $100,000 price increase in March if things in this country take a turn. I used to think once you sign the final contract then you would be locked into that price no matter what, but that clause changes everything.
I would like to point out that I bought a nice house in South College Station back in 2019 for a great price in today's market. We have no issues staying put and not building, so right now we are really torn on what to do since we do not know the future. But the house plan and lots we are building on are more of "the dream" place for us. Any advice is highly appreciated. Thanks!