Thursday, November 22, 2012

Contract Signed, Offer Made

My wife and I met with our SR last night.  Very cool that he was willing to meet with us on Thanksgiving eve to sign the contract, he's awesome.

Last post I covered our back story which kind of ties into this post about our "offer".  Like I explained last time with how Ryan Homes likes to operate, we went about it backwards.  I feel that it helped us out a bit and I'll explain.  First, obviously by the blog post we chose to go with a Venice.  Now let me cover the options that we decided to go with:

     What we added:

  1. Elevation B with Partial Stone and Veneer Front
  2. Morning Room
  3. Kitchen Gourmet Island
  4. Granite C-tops
  5. 42" Cabinets w/ crown molding
  6. Upgraded faucet fixtures 
  7. Recessed lighting package
  8. Fire Place with upgraded beige marble fill
  9. Owners bathroom type E w/ soaking tub and shower alternate layout
  10. Upgraded garage door to carriage style with opener and 2 remotes
  11. Flood lights on rear of house

There are a few other little upgrades that we chose but those are the more important ones I think.

Still to add after looking at all the options before the 14 day deadline for change order requests:

  1. Adding the more elaborate tile in the owners bathroom (can't remember the option code) 1095.00
  2. We want to add the utility wash tub/sink in the garage 495.00
  3. A blower w/ remote for the fireplace 300.00
  4. Also, we get for free the standard 10x12 patio but for like 200 difference, we want to do the 12x14
  5. Lastly, we need to confirm how many power outlets are in the garage and also external outlets around the front and rear of the house for Christmas lights.

What we're adding/upgrading with the flooring people and Guardian:

  • Extra cable outlets in the other bedrooms
  • Prewire for TV mount in living room
  • Budgeted for upgraded carpeting and padding
  • Also upgrading the kitchen to a lot better laminate 


What we passed on but wished we could have worked it in but to stay within a decent budget
We passed on the hardwood floors.  They're beautiful but we wanted to use that money for other things like:

  1. Granite countertops
  2. Kitchen island
  3. Upgraded the elevation to be what we think is that beautiful partial stone and veneer
  4. Beautifully tiled bathroom, etc.


Also, I really wanted the banister railing but for something so small, I couldn't justify the 495 dollar price.

Everything else is exactly what we wanted!  We figure that the hardwood floors is something we can revisit a few years down the road.

We were really surprised by our SR last night too when we met up to sign the contract to find out that Ryan Homes is also throwing in for FREE, window blinds on every window in the house for contracts that are signed before the end of November.  Free 1200.00 upgrade! Obviously that's their price and could be done for around 800.00 I think if we had to do it ourselves but shoot, I'll take it!!

So now, to tie back in with what I started with.  Everything that I've listed earlier brought our grand total to about 171,000.00 plus or minus for the NET Sales Price. (185,000.00 to include for the added incentives/discounts) Our offer that we submitted was for 165,500.00  Now obviously we have to wait to see if they accept it but I'm a haggler at heart.  I haggle for EVERYTHING.  This whole process has been fun for me in regards to putting the perfect deal in place all while getting just about everything that we want.
If you are reading this and contemplating a build with Ryan Homes, you need to get familiar with DP.  That's Direct Profit.  Ryan Homes strives to stay above about 21% direct profit in all their builds.  RH will rarely, if ever, negotiate on the base home price (149,900.00 in our case) but obviously their upgrades are way over priced and only adds more to their direct profit margins on each house for those that do not haggle or ask for better discounts.  This is where you have leverage!  USE IT!!  As long as your offer is not completely absurd and fairly reasonable...AND falls in line with their DP projections...they are willing to deal and entertain offers, regardless of what your SR might say.  For the longest time (in the beginning) even our SR tried to say that RH doesn't do offers.  As time went on and my relentlessness to haggle never wavered  he started to cave one day and then I knew I had him :)  Just remember to not take it personal because their job is to gain your business, all the while, obtain the best possible profit margins for the company that employs them.

So that's it.  Today is Thanksgiving and my family and I have so much to be thankful for this year.  We're super excited about the coming days and watching this thing happen.  Our SR said that hopefully he would hear something back on our offer by Friday but if not, should be Monday.  After that he said that we're gonna move quick because we've already done the hard part and that's the whole hurry up and WAIT to get though the pre-approval process and actually get it from NVR.  He said that normally their process is to get someone to sign the contract or proposal to purchase and then they have to wait to get through underwriting.  And with NVR...it takes For-Ev-VER!!!  (those are my words).

I'll update again when we hear something!


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