Down Payment??

[richard]

When ordering a home what is the normal ammount paid at the time of ordering?
Do you pay a percentage and hold some back until it is set up to ensure the work is done correct?

[rmurray]

Deposit policy will very a little from dealer to dealer...Most will require from 5 to 10% deposit to play the order..They will want to have an understanding where the rest of the money is coming from as well..Most buyers here will suggest you hold back some until the final inspection and delivery..I see things as a dealer does..we will request full payment prior to delivery..but usually after the home is in from the manufacturer..This gives you a chance to see if it is the right floor plan and colors...We would require full payment prior to the home moving to your land..Sometimes we have arranged bank or attorney managed escrow accounts with draws on a predefined schedule..
You should not expect a dealer to build a whole home on your location without a reasonable assurance that he will be paid when he is done..
Be sure EVERY detail of your deal in in writing...Be sure every detail (including colors and upgrades) are covered in your purchase agreement also be sure all details of land prep are covered and who will do them are covered as well..It is not unusual for purchase agreements on custom ordered home with land prep to be 5 to 12 pages long...

[tngilmer]

Any chance you could send me a copy of such a purchase agreement? My wife and I are on the brink of custom ordering a home and the purchase agreement provided to us by the sales center was only one page. I have bought all the books (Grissom, etc.) and done my due diligence but I have not found an example of such a detailed purchase agreement as you describe anywhere.

[rmurray]

Sorry..I work for Palm Harbor Homes..who customizes about 90% of all sales with custom orders..Our experience has developed detailed purchase agreements which cover every detail of the deal...It will be 5 to 12 pages long and most often there is an addendum of the 4 page factory order confirmation...Which details all standard features..all color choices and all upgrades...The detailed purchase agreement comes from custom order experience and forces us to be sure the customer under stands every detail of the process...and the home...

Most often prior to actually ordering the home our office manager does what we call a warranty close which covers every detail of the timing..delivery schedule, Specific warranty information of every item in the home and a video of the whole set up process..This close involves another 20 pages of information even covering the event of bad weather..details about insurance coverage while the home is on the road and while being built on the property..

To some it is a overwhelming process..Takes hours to prepare and hours for the customer to review and sign..but it DOES eliminate any miss understanding and risk of all parties...

Unfortunately all this is company paperwork and I cannot send it to you...Of course you can redo your plans..find a Palm Harbor owned dealership who are highly skilled at custom orders..

Your other alternative is to consult an attorney who is skilled in custom building...Of course..now you hold the money and you can demand the dealer include every detail of the purchase even if he has to write a new forms and pages..