Lumber surcharge??

[Lynn]

We have narrowed our search down to about 3 manufacturers. We sat down with one of the dealers a couple of days ago and got the important questions answered. And got some numbers on the floorplan we liked.
Included in the total price, but not in the base price was a lumber surcharge. Is this standard? I did a search on the net, and the only mention I find of a lumber surcharge is of one being instituted a year ago,(June 2001) and then rescinded a short time later.Any info would be appreciated. Thanks

[r murray]

Yes this is common...It might be different every week..some times up...sometimes down..

The lumber market is such that prices change daily on lumber to the plant..So to offer the best price factories have added a surcharge line..This reflects the increase since the date that it first started..Sometimes years ago...

[Peggy]

Can you give us an idea of how much the lumber surcharge is or how it's calculated?

[rmurray]

This is a forced option...nothing you can do about it...
The amounts vary from manufacturer to manufacturer and there is no comparing it..You should add it to the base price along with the freight to the dealer...Then compare..This option started many years ago when the lumber market could very daily by wide margins...When the lumber market started wild swings in the late 70's...we used to get as many as 2 or 3 price adjustments per week...Now most manufacturers have usually 1 price adjustment per year...and the lumber surcharge varies through the year...It can vary up or down by a few dollars...nothing to worry about in the scheme of things...

There are other forced options also...example..HUD fees...sometime state association fees...in some states there will be tire options...all are forced and not controlable...If you buy the home ...they are there....

Just spec out the home the way you want it...with all options...then do the same with other manufactuers and compare...Decide which of the real options you want...do not worry about those that are forced...just think of them as part of the base price...

I just spent yesterday specing a custom home for a customer (I suspect they have Randy's book) from 2 high quality custom manufacturers...Jacobson and Homes of Merit..The standards and option prices varied wildly...example hardwood floor (exact same supplier)..HOM was 6800 and JAC was 3400...Yet the bottom line complete delivered to our location was only 300 difference...Most of that in the freight since 1 plant is futher away than the other...This is almost insignificant difference in a home that will retail for over 85K

Relax...get your specs they way you want the home...go for it while interest rates are still low...