Let me explain to you the nature of track (residential) home construction. The developer ( I don't call them builders because they don't actually do any building anymore; everything is subbed out ) put out to bid ALL phases of a subdivision. Lowest bid wins the contract. With floor covering, the typical contract costs the developer ZERO, NADA, NOTHING. Here's how it works. The flooring contractor bids the "job" with the bare bones basic floor covering. The cheapest vinyl and carpet the FHA will allow: no hardwood or tile; that's an upgrade. Unless it's a 4x4 finger block parquet entry. But the flooring contractor gets an exclusive on the delelopement. Meaning, no other flooring contractor can work there before a home closes. The buyer must take possesion and close escrow before he can hire his own contractor to work in his house. Before escrow closes, it isn't his house! So the flooring contractor, along with the tile contractor and cabinet company and others, gets to set up a "design center" in the offices or elsewhere. Here, the buyers get to see the "junk" that the home comes with or what they can get as an upgrade. Well, since the flooring contractor gave the developer all the basic flooring for nothing, he charges the buyer big time for the upgrades to make up for that. Almost double market price. The developer often gets a piece of that action, as well as the realtors. Everyones hand is in the pot, so to speak, on the upgrades. Well, the buyer often knows they're getting reamed on the upgrade price but guess what? You can finance that upgrade (roll it into your mortage loan) and have it done BEFORE you move in. NO hassle to you and it will only increase your mortgage by $75. 00 a month. If you hire someone to do it after you move in, you'll have to pay them now. The $5,000.00 + that you need for furniture and window coverings and landscaping. So it's not too hard to see why many choose to have the developer go ahead and do the upgrades, even though they are paying through the nose for them. Everyone (except the buyers) understand this and count on it. Bottom line: Why do the "developers" charge so much? Because they can!
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