Replies

1. 
   Rich_ | Nov 17, 2001 09:57am | #1

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   It really depends on the size and quality of the house and the cabs, wouldn't you say? Of course, you could say "avg spec", but it's your money. You also should mentally project how this may effect the relationship you have with the builder now and what the ramifications of a sour deal could mean to your business. Having done this a couple of times I can only say 'beware'.

   You have to determine what the cost of the cabs would be normally and then factor in the time you'll have to wait until the house sells. What if the house is slow to sell because of 'customer issues' or the market is slow? Will your money be tied up in that? Just be prepared to not see that money for awhile.

   The above and that you're entering into a de facto partnership with the builder is the downside. The upside is this helps cement a good relationship 'tween you and the builder and you may come out ahead if you get the right percentage. Add no less than 2% to the builder's price of the cabs.

1. 
   Michael_Rimoldi | Nov 18, 2001 12:30am | #2

   *Buddy, I'm not sure I completely understand your arrangement for the sale of the house and your part for the cabinets but... I would just build the cabinets as a sub and charge the builder outright and get paid when the cabinets are installed and forget trying to make a little more when the house is sold. If its just a spec house, I don't imagine they'll be any special design of the cabinets so I wouldn't hold out for money over the long run... OR..... Work out with the builder that you will build custom cabinets for the new owners upon purchase and then they can pay any extras they want for upgrades on the cabinets. This could be a big selling point for the new owners and also a plus for a sale as its a spec home with some custom features available...Mike

2. 
   Buddy_Wester | Nov 18, 2001 12:30am | #3

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   What would be the cost of cabinet/countertops as a percentage of the total cost of a house. I am thinking of furnishing a spec house with cabinets and taking a percentage of the sale of the house. Has anyone done this? Any thoughts would be helpful. Thanks