Our Contractor Keeps Raising The Price Of The House We're Building!
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- Опубликовано: 9 май 2021
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Builder is NOT screwing this guy. Houses are up five digits. He is being totally legit.
It’s not how much money you keep, but how much money you make, how hard it works for you, and how many generations you keep it for
@@Joe_TradingFX chicken nuggets are not nuggets.
@Ryan basically hes saying a bird in the hand is better than two in the bush
I'm happy to see Expert Micheal Marcus mentioned, he is recognized on the google, my husband recommended him to me after investing £1000 and he has really helped us in times of this bad pandemic crisis
Average cost of materials for a house is up $34k. JUST MATERIALS
this situation sucks for everyone, I dont blame the contractor for raising the price.
Sucks for everyone except lumber mills and home improvement stores. They're making a killing right now!
@@DietTimboSlice Lumber mills are making money like a bank robber, but I understand the previous years have been tough on them.
@@DietTimboSlice the stores have to pay more for the product so how do you know they're profit margin is more?
This guy needs to open his eyes to what’s happening around him🤦🏼♀️🤷🏼♀️
Absolutely. Imaging cleaning this guys house? Whining client wouldn’t want to pay
Yep. Stagflation.
Its hard to know whats happening when u are not in construction business
@@johndone8045 Price of lumber and building materials have been in mainstream news for weeks.
Penny wise pound foolish
For once the contractor isn't screwing their customers. Material costs really are skyrocketing right now.
It's just a phase it will die out, and sales will drop when the manufacturing returns to normal and people are working again.
@@leadnsteel1428 I am not so sure. When you print 10 trillion... I think we are about to see massive inflation soon.
@@rick2591 this is the first time they have really printed out money.
@@rick2591 That has nothing to do with lumber skyrocketing. Plywood was 10 bucks a sheet a year ago, now its almost 50.
@@banquetmeal663 It does but it involves multiple variables...
You see, people get the money and then at some point they spend the money. When the velocity of money increases, that is when we see the inflation.
If he’s going to be that tight. He won’t be getting a house for awhile
Exactly!
Lol, yeah people are paying up to 100k over asking here in vancouver Canada.
This guy crying over 20gs doesnt know how crazy things have gotten.
Yeah this guy is being ridiculous. How can you remotely expect the builder to not charge you more as long as it's verifiable with prices as they are. Luckily the builder shouldn't have any problem reselling the house.
The question that wasn’t asked was, in 10 years when the price of this home is 500k to build, will you be ate up you DIDN’T do it now? I wish I had bought this, I wish I had done that all the time but I seldom regret what I do if it’s thought out.
I’m paying off my mortgage this week then I’m 100% debt free!!!! Thank you Heavenly Father for answering my prayers and blessing me abundantly.
Such a blessing! I still hope and pray to buy a home with room to spread out although I'm 55yr. old. Glory to God! The Only true God.
@@lise-annedore8935 It truly was an answer to prayer.
Wonderful news!!!
@@SeanBaker Dave Ramsey is right!
I've got a goal to get this house paid off soon!!! I know it's gonna happen!
He is about to learn the hard way that leaving this deal isn't going to make getting a house somewhere else any easier.
Nope, and the house will already be worth more than the increase by the time it's done too.
The builder is probably praying for this guy to back out so he can sell it for 350k.
It's a bad time to buy really for everyone I wouldn't buy or build I would wait another year or two
Net even close
@@InternetMoneyPE They Haven't EVEN Started to Build the House yet! Did you 'Listen' to the Video OR you can't comprehend.
Bless Dave for sticking up for the contractor on this one. Caller would be unhappy with all home prices, whether he's building new or not.
always someone wanting something for nothing one way or the other.
Contractor isn't raising prices, the material inflation is. Stimulus is. Printing money is. General inflation is.
Yep
100% the guy was buying more house than he could afford and just wants out
its crazy everywhere lol
Why dont people see this. This super hyper-inflation is affecting contractors too otherwise they'd go broke as well. You wanted your "free" money, and get paid while staying at home, then there you go, now youre crying that you cant afford to build your home.
I contract work in the commercial world and my quotes are only good for so long because of the crazy change in prices. My purchasing team was taking forever to approve a PO for work that involved copper and I constantly had to nag them to approve before the prices changed again.
10k is a very small increase in the bigger scheme of things especially having spent hours and hours researching homes and finding ideal home...
"10 years from now is this all you're going to be thinking about?"
I guarantee it is, because he's going to pay $425k for a house he could have had for $325k but he blew it over $12k in lumber. :D
I am in the construction industry. This is happening and the caller is not getting ripped off.
Same here, I’m in the Ohio valley and I’m starting to lose jobs because material costs are making it unaffordable to build. It’s not going to end well
@@Bishopaaronbeachy give it time to crash, lumber futures are going down because supply is coming back on line
@@Justin-jf4ub that would be great! Can you point me to where I can find info on futures?
@@Bishopaaronbeachy The bible
@@davidr.wilson8194 lol 😂
A lot of contractors around here won't even bid on a job if they can't buy supplies up front. Wood is going up so fast they will loose money.
Or LOSE their ability to not spell LOOSE instead
@@wswillett ...Unnecessary 😏.
@@bhamilton8584 Needed. I'm tired of horrible grammar!!
@@bhamilton8584 absolutely necessary
@@bhamilton8584 But really funny!
its 10 grand on a 300k house that seems like a drop in the bucket
Wait until this guy tries to buy another house down the road a bit, it will even be more money and what will eat at him is that he should have gone through on the first house.
A Ten thousand fluctuation on a 300k plus deal is nothing to get this worked up about. He is just not ready to be a home owner yet, period.
$10K is not the final price. What if it goes up to 50K?
I was thinking the same thing. Also, a $325k house on a 90k salary?? Seems like pinching to make the mortgage payment unless he’s 100%clear everywhere else or 10k wouldn’t be such a bother. To many people thinking (making the payment) & afford are the same thing. No.
@@revnaw639 Agreed, on the free and clear part. If he has no car payment or cc debt, 325k is easily affordable on 90k salary.
@@revnaw639 Agreed, on the free and clear part. If he has no car payment or cc debt, 325k is easily affordable on 90k salary.
You dont pay, they have over 200 buyers ready to buy.
Somebody gonna pay it
Ten years from now when the guy sees what houses cost he won't get over the fact that he bailed over a 3-5% increase.
exactly
Hey scared money don’t make no money
Lumber prices went up like 120%. At least it wasn't steel...that went up 145%!
Lumber prices are up 400%.
When buidling a house, $10K increase isnt really much. Its a normal change order for people
Lumber prices ARE going crazy high right now.
I'm so proud of them!
And in the future it will not
350k house on 90k income...sounds like way to much house for that income in the first place.
it dpends on other factors like if he has other debt, and if he has an emergency fund.... gotta have some leftover after the mortgage is paid
it is to much house even if he is debt free and has a emergency fund
@@dknowles60 how much does Dave recommend then? Because the payment is less than 25% of monthly income if 30 year mortgage?
@@lililililililil9132 Dave doesn’t recommend 30 year mortgage. 10, maybe 15 year.
@@tymccall8417 ah oke i see, ty
That contractor needs to let him out of the contract, it’s too busy to be dealing with clients like this guy
these are some weird times. things change daily but I won't do a job if someone isn't willing to buy all the materials upfront. ill just charge labor at this point man
Next year he will have to pay 30k more for same house.
Highly doubt homes are just going to keep going up.
@@Silidons91 At some point it will pop when...not sure.
Bingo
50k
Maybe he will maybe he will not. Several people I know said in 2007 the same thing. My house in 2009 was half off.
So material’s have quadrupled and the builder only raised his price 3.5% he is praying they pull out lol
"i feel like I'm getting the short end of the stick" LOL
That is true contractors right now are completely unable to lock down prices on lumber.
Copper and electrical components are crazy as well.
We're contractors & we are not currently bidding remodels, additions or new construction because our distributors flat refuse to lock in prices & in many cases can't guarantee enough stock for us to preorder framing packages. In our area most materials are up to nearly double, more on some items.
200% you mean
@@justshady 400% you sound like youre 12
prices arent going up
youre being taxed the inflation tax
Yeah supplies are crazy high right now. If the contract says they can raise the price then that is that. You should have confirmed prior to signing.
Haha this caller is silly. He’s not ready for the world.
Prices will NEVER go back to what they were. Not even close. They will stabilize eventually. Maybe even come down a bit but Early 2020 prices are long long gone.
Aside from localized issues (such as discovered builder defects in a planned community), none of the current appraisals will come down. They will only stabilize and eventually go back to incremental growth. Basically means if you have the ability to buy now then swallow that pill and do so because you're going to be paying a lot more for the same thing, or even a less desireable home. Remember, the comments on "You paid a ridiculous amount" vs "You were lucky to buy in before what they are now" is all relative to the period in time.
I’ve been a general contractor for 12 years and i’d never dream of signing a contract that did NOT have a material cost increase clause in it. Our net profits are slim enough that a single unforeseen event would bankrupt us.
All the materials for building a house have increased about 20% and it's only going to go up because fuel costs are going up taxes are increasing and the demand for houses are going up because people want to get away from the city
lumber and steel prices are up 300% and he is tripping about a 3% price increase? what lol? im a contractor and prices of materials rise which means the price the customer pays has to rise. you cant lock in a price and then lose money on the build, thats how you go out of business...
A lot of ppl gonna realize that if the materials aren’t already purchased it’s going up...I bet the house will be 350 if you do it
Inflation is here. Printing money does have consequences
Lol same story here, but our price is under contract and will not be going up!!
Boe Jiden sounds about as brilliant and his close relative. Sure the price may not be going up but the quality of materials and probably labor is certainly going to go down.
@@travisb9130 no sir, I’m a super for a GC and the scope of work and material specs were included in contract. This ain’t my first rodeo
This guy should not walk away from the deal. Houses are skyrocketing.
What goes up most come down though.
Caller doesn't sound very bright..
Starting a house build
without paying attention to what is happening around him...
I'm thinking he has sand in his ears...
Is it really that hard to believe, that someone doesnt care about news/politics and wants to just live their life, and maybe is some young 20 year old wanting to try getting a house?
@@XFizzlepop-Berrytwist Yes, yes it is. Sounds pretty immature imo, if this person is building a home without counting the cost. How do you not do your homework? Now he's in shambles calling Dave for help lol.
325k built home on a 90k salary is stretching it as well. He can probably barely afford it.
@@XFizzlepop-Berrytwist
Don't want to hurt your feelings...
But in today's day with every thing that's.happening..
Only a fool destined to fail
Blocks the sun out with his finger...
These are times that have never existed before
Every day problems come up
Designed to break everyone except the trillionaires and billionaires...
@@jimh4167
These times have existed before, just not in some of our lifetimes.
History always repeats itself, usually the bad parts of it.
I remember a plague in history wiped out a good portion of people on the planet. XD
But more recent, we had a 2008 crash, we had Ebola outbreaks, Malaria outbreaks.
WW1 WW2, great depression, Korean wars, Vietnam wars.
Its the same concepts happening, just under different names for things.
This is the reality of home building right now. Buyer is going to run into same situation on his next new home unless he can lock in his pricing. There’s currently no end in sight for materials price increases.
At current interest rates it would have cost him an addtional $70-$80 per month. Lumber is up 400% and rising. Harder everyday to source ALL materials. He should buy the home!
Lumber is up like 6x since of November, it’s nuts. Things are going to get way way worse. There isn’t any road let to kick the can down the road .
I don’t understand why this young man questioned the “morality”. He’s in a contract.
Lumber prices are going up like crazy
Why?..
@@HermannTheGreat They are. OSB that was $12/sheet a year back is now mid/high 40's.
@@patty109109 2x4's went from under $3 to $10 each. Its insane and it is the due to supply.
Because nobody can find the "tuba fours" Dave talks about.
@@ThePeterDislikeShow I'm starting a new band and all the musicians are going to be playing tubafores.
Just wait until this happens to groceries, gas, and other goods. You think it’s bad now...just wait until the summer. At least we don’t have mean orange tweets right???
Fool ^
Food has already gone up
@@jphickory522 nah, I’m spot on.
@@Jane5720 I honestly haven't noticed any food at my Costco going up. Ground beef is still $3-4 dollars a pound, chicken is 2-4 depending what you buy. I typically don't buy meat unless it's $3 a pound or under, just my personal rule.
Go long cryptos and the Bureau of Labor just released the CPI of 2.6% for the past 12 months so no inflation lol
This happened to us too. Getting a barn built and materials went up about the same percent this guy quoted. It wasn’t their fault, materials are going up. They have to make a living too. Don’t expect it to go down anytime soon with the worker shortage. Until people go back to work they can’t produce and distribute enough for everyone.
It's almost like manufacturing trillions of dollars out of thin air had some consequences.
Yep , same house I passed on 2017 is now double the price
Yes, it absolutely does, but this isn’t one of them.
FACTS!
Or as if a pandemic made it impossible for lumber mills to work at full capacity??
@@IINK9 So the pandemic prevented people from working to create the supply, but the pandemic did not prevent the construction work that demands the lumber?
I also doubt lumberjacks were avoiding work. These are tough guys and they aren't likely to be scared away from work like some soft urban hipster.
I knew I was blessed, but I didnt know how much. Thank you heavenly Father and Lord Jesus that I closed 12/29/20.
Closed 12/31/2020. 🍻
6/19
05/16/20 thank God
Closed April 2020! Glad we got in when we did.
Yeah, me and wife say the same thing. We signed a contract to build a new home in Feb 2020 right before a pandemic and quarantine was announced. Everyone thought we were crazy because we sold our previous home at the same time. It all worked out. Closed in oct 2020.
I'm an electrician and can tell you supplies are through the roof.
Wood has gone up substantially, its ludacris.
Tell homie to go to Home Depot and buy a 2x4
yup. $85 for 5/8"" plywood per sheet.
@@charliedillon1400 For real? Oh my!
@@charliedillon1400 lol. I can furniture grade plywood for cheaper than that.
I like Dave here making a rational decision not based on emotions. He gave the man a thoughtful response.
Building a house for 315-325K on a 90K household income without doing any analysis on the cost of building materials... Please help Dave 🤷♂️
Even without the price of building materials going through the roof, a $325K home on a $90K income is out of line. A $90K gross income is about $65K - $70K net at best. He should be looking at a home more in the $250K price range at max. Right now is a terrible time for a buyer - especially on new construction. Existing homes are going for 10 to 20% over list and flying off the shelves. I’d stay in a rental for the foreseeable future and let this calm down.
@@aeromedical6750 that's too logical and you wouldnt need to be calling Dave with that logic lol
I don't like that its been two months and they haven't broken ground. My family got scammed by a contractor and he always had an excuse of why he was taking forever.
Permitting is taking 2-3 months in my area. We literally cannot break ground. Everything is backed up.
3.5% raise seems like a good deal. I am a contractor we’ve raised prices over over 10-15% because of materials at this point.
This is the disadvantage of stimulus people don't want to work because they can stay at home and make more money.
Now companies cant find labor's to make and manufacture the products which create a shortage and scarcity
Now prices are going up
This has nothing to do with stimulus. Lumber supply is slow to respond to demand spikes because you have to wait for trees to grow. Simple as that. Has nothing to do with people willing to work. It has everything to do with waiting for trees to grow.
@@DavidJao Log prices aren't up. Milling is where the bottle neck is.
You remember when dave said we will see inflation, and I said it’s already here... then one of his lap dogs got mad and told me I don’t know what I’m talking about.... I think that’s the caller, guy is oblivious to what’s around him 😂😂😂😂😂😂😂😂😂
Guy with no idea how building a house works is mad at the rate of inflation happening. You can’t build a house tomorrow for what you quote today. Prices on everything are going up every week.
BIG inflation coming.
It's already here . How big are you talking ?
@@immelting9834 YUGE
This is happening everywhere. Same thing when we were looking at building a new house. Lumber prices went up and so did wait time on supplies
You have a platform, a message to deliver, continue to do so effectively. The politics, the personals that people know about you...WHO CARES? As long as no one is endangering or violating you, your safety or your family, let haters hate but don't stray from the main thing which makes your platform so useful. Everything else is fluff and we're not here for it. Keep up the good work, Coach!
What’s the difference ? He’s gonna pay a little more to build or get in a bidding war on a already built house
I work for a pool remodel company and this conversation was a tiny beacon of hope in this massive sea of people who assume that we are spawns of Satan because we have to change things about their projects that are completely out of our control. I don’t even know this guy and I just got a sigh of relief from him 😂
I am a contractor, and this really sounds legitimate. Materials are up several hundred percent around here. I wouldnt even consider building a house right now. I had a client walk away recently and I wasn’t offended at all.
He’s going to regret Dave’s awful advice to walk away for $10k. He won’t find a house for under $350k or so.
Dave gave the advice because the caller feels he's getting ripped off.
It's all about the caller's attitude, not Dave's.
Dave didn't advise him to walk away. He just sad it's not morally corrupt to walk away and recognize that this guy is in a mental place where he won't get over it. It's not Dave's place to convince him to stay.
The price will continue to go up.
Guy was deadset on cancelling the deal anyways. Dave could barely convince him that he's not getting shafted and the lumber shortage is a real thing.
Guy is going to get a reality check… A better question would be: “Since you are not getting ripped of, and apparently you have no idea what materials are actually costing; 10 years from know, are you even going to notice an extra $10k for a house that has already gone up in value?”
Idiot
“This is going to be the best year to build a house”
Me, in the construction business: HA🤣
Well let’s figure the caller is putting 20% down. by the time closing comes around his mortgage will be around 290k putting them at 2000 a month plus taxes and insurance which I’ll gestimate at 400 a month for escrow. Puts him at 2400 ish on a 15 year loan. If he is a true Dave listener is what he will do. That puts him at 45% take home for his payment. He should not have signed the deal in the fist place. He was buying too much house for his income.
That’s exactly what I was thinking. He can’t really afford this house comfortably. If $10k (could end up more) is gonna break him, he needs to be looking at something much more affordable.
I think 90k is after taxes not before.
@@kickandblock even so that puts him at to large a payment if you follow Dave’s recommendations. His total payment should not be more than 1875 on a 15 year mortgage. Dave recommends your home payment be less than 25% of your take home.
The cost of lumber right now is HORRIBLE!!! Prices have increased ten fold.
Ho boy. This caller... lol. Dude if you pay like 10k over original, that's nothing. Some places are going for like 60k+ over asking on houses being bought!
Even 100k in Cali
You’re the homeowner wanting the home, that means you take the risk. Why would a builder take a risk so you can have a home you want?
Lumber is going up but the price of cutting trees is the lowest ever. Someone is really driving up the cost
The loggers are working daily and have been in most areas. The saw mills that pay 10-15 / hr are in need of labor to run the saws and stack the lumber. Very hard to find people to work physical labor for lower wages when can make that sitting home on unemployment.
@@Bamapride1985 Yep that's what I heard too, it's the lumber mills that are causing the pricing shift not the lack of trees.
This caller doesn’t understand anything.
Making 90k a year this deal falling through is a blessing for him. This guy doesn't need to be building a home
@@joshgeorge7 why? 300k mortgage will be about $1500, vs his $7500/month income. This is the same boat I’m in, I feel very comfortable with a $1500 mortgage.
@@gabe1254 1500 plus taxes and insurance. That’s about 2400/mo
@@gabe1254 thats because you a short sighted and don't know what you are talking about
In the grand scheme of things this is like an extra $27 a month increase on his mortgage. Just build the house
I recently built a deck for my mom. A $3 2x4 is now going for about $7. Lumber prices are crazy right now.
I think it's immoral to expect somebody to build a house for you based on prices of lumber from a year ago. Especially if it was in the contract. Canceling building the house, sure. But to expect somebody else to eat the costs just because you don't want to is ridiculous.
I don't think that's his issue I think he's concerned about them having the ability to raise the price to whatever and blaming it on rising lumber costs. He doesn't want to get lost in the numbers of rising prices.
I love Dave's laugh to open the call. 😂😂
Sorry but $10k even 20k isn’t worth losing a deal over
NOT the Time to BUILD Period!!!!
Horrible time to buy.
Unfortunately that’s the nature of the beast unless your contract says explicitly how much you will be charged for your materials. But right now, building material prices are so unstable and high that you can’t really avoid it unless you have a contracted dollar amount for your materials.
This guy is living in a bubble, everyone knows it’s skyrocketing right now everything !
This is such a small increase, but obviously the caller isn't really worried about the $10k.
Plus material cost.
Ya I think he maybe has more going on... maybe he doesn’t want to buy the house because it’s already over what he can afford
For once I'm on the contractor's side, the price increase is actually reasonable given what lumber and other materials are doing right now. BUT are they going to raise the prices at every step just to raise prices?
The caller is so oblivious to his surroundings. He's in for a rude awakening
So giving out enhanced unemployment and stimulus checks caused the price of everything to go up? A third grader could have figured this out
Literally no connection what so ever😂😂
@Brandon Juber shortage of supplies due to demand has nothing to do with Stimulus, etc..people love to throw that fallacy around...
As the Contractor I'd be a little suspicious of the Mortgage lender who all of a sudden prints a Denial letter. That is the most shady part of this entire call. Contractor is Good. This caller needs to loosen up his budget and realize these things happen in life and that mortgage guy...is the most concerning IMHO.
Yup, I would blacklist that lender. Guy just needs to talk to the builder and see if they can come to a resolution instead of playing games. Builder might even let him out of the deal at no cost just to get out of the hassle of dealing with the customer
It’s gonna stink when this guy pays $400k in 2022 for a house he could have built for $325k in 2021...but at least he’s saving $10k.
This guy is better off just buying a house than trying to build one
I am a real estate agent and all of my local builders have refused to give me plans and even ranges for the houses. It’s real! Soon, builders will stop as appraisals will not keep up with the costs of building homes. And if you are a VA loan borrower building....good luck.
Just Google Warren Buffet inflation warning
You are looking at hyperinflation type price increases on materials. Maybe supply will increase soon. Maybe. We don't know
Hyperinflation is an exaggeration. Other than that I agree, captain.
Totally agree with Dave. I’m currently building 17 units all 1M+, lumber costs are out of this world and the customer is having to eat them.
I wonder how this guy will feel about it in a year when it costs him another $50K.....
I'm guessing he knows he's at the top of his housing budget and is going to panic if they raise the price. It's pretty common knowledge that wood and housing materials are sky high right now. It sounds like he needs to back out now and wait.
Yeah man, I remember when I was younger. I thought I was hot stuff, got into stocks, and absolutely failed. Learned my lesson. Moved on to safer investments, such as playing at the casino.
The deal didn’t change. He literally agreed to everything the contract outlined, including the prices potentially going up. Reneging on a contract you agreed to is clearly morally wrong. Nobody wants to deal with people who don’t keep their promises.
Also getting the financier to write a letter saying finance is denied even though you can afford it is called lying
He may not be able to afford it now
i literally just went through this with a planned RV purchase. We walked away from it without cost to ourselves or the dealership and we are happy. We just didn't want to look at our RV every time and feel bad about the deal. So we walked.
I just finished construction on a duplex that went $70k over. Half of that was material costs and the other was the city jumped in and insisted we have a more expensive driveway than we had planned. I was unhappy of course, but the duplex is now assessing at $250k more than it was when we started the project in October. Keep a macro view and don't obsess over the $10k I would say. Walking away from a house that is $10k over probably has a higher opportunity cost than eating the extra amount.
Juancho says hi from Miami
Que bola Juancho? From Miami.
I'm a contractor and wood is up 300% it changes every day. Now is not a good time to build a house if you can hold off
$90k income/ $315k house, wasn’t affordable to begin with. No way should the loan qualify after price increases.
My dad is a general framing contractor of 40+ years, he has never seen the supply chains to do this. He too has had to raise materials costs with clients on bids, don’t think he’s done it on an actual contract, and he is losing clients left and right. I truly feel horrible for contractors in this situation.