You will need to learn specifically how your Builder works on this one! Your sale agreement will likely specify a period of time that is to be used to make your choices and see what he offers.
An established Builder will have his or her own method of doing the figuring. Commonly, a Builder will fill out a selection sheet, an'Exhibit', or a 'Counter Offer' once he sees what you're choices are. This will let you know what the additional cost increase will be for the upgrade, and the price given will cover the gap between what comes standard on the home and how much the difference will be to provide the upgrade. However, if you are removing something from the plan, for example if you don't want a gas fireplace and one was offered as a standard ammenity, the Builder will offer to trade for an equitable item, or offer to subtract the amount from the sales price. Keep in mind that Builders get dicounts from their suppliers because they buy in quantity, so the credit back to you won't be for the full retail price that you might be expecting. You may also expect to pay a fee for a change order if you change your mind once building is under way, since changing materials and plans with the sub-contractors does incure a cost in both time and money!
The first six months of 2009, 75% of my home sales were in new construction in my small region. Then our area kind of ran out of new construction. More is being built now, which is good news for our economy. But with my sales, I've had the opportunity to work with a number of Builders, and these are the most common arrangements that I see.
Happy House Building!
Sandi Siron, Principal Broker, ePRO
ERA Universal Realty, Hermiston OR
Office: 541 567-8303 Mobile: 451 571-1221
Maybe a better way to put it is that the credit is already figured in and you are only paying what the builder says is your cost to go with your choice. That is the way it normally works.
The answer to this question can vary depending on the builder.
I work with a builder who offers a credit towards the kitchen, bathrooms, etc...he will tell you what that credit will offer (ie cherry cabibets, granite, tiled backsplash, etc).....then you go to his vendors (or you can go to your own) and select what you want.
If you choose levels above those he allowed, then you pay the difference. This way, yes, you are getting a credit for what was offered, and only paying the surcharge for higher end choices. The homes I am describing are custom...not development homes. Other examples - he gives a certain allowance for lighting, including so many recessed lights per room - if you want more than the allowance provides - you pay the difference.
Another option - my friends just moved into a new luxury condo building..they took a monetary credit for the kitchen and bathrooms, and had their own designer use that (and a lot more) to complete the interior finishes.
So - one answer doesn't necessarily fit all............that being said - .generally, no, you won't get a credit - you'll simply pay more, or the difference of the costs involved, for the upgrades.
Enjoy your new home......
I wish you all the best with your new home!!!