We are building a new home with approx. 2500 sq ft hard wood. floor. The builder's sub finished laying the floor, sanding, applied the stain and 1st coat of poly in a satin. While visiting the house I observed that there are numerous pencil sized holes throughout the flooring. Additionally I noticed two larger holes approximately 2" by 1/2". When I asked the foreman about the holes he said "there are different types of wood, and the builder used this type of wood - "natural white oak". We were previously told that all holes and gaps would be sanded and filled, not to worry. Now we are told this is a natural look instead of the hardwood looking like laminate. We are so disguseted with this. I feel like he got the cheapest wood he could find and it's too soft. We have had hardwood before, and have never seen anything like tghis before at a previous home or at anyone else's home.

Could you please tell me if this is common and if it is is it normal. Oh we were told they could fill the two larger holes if it bothered us. If anything spills on the floor it is going to seep into the holes. Suggestions??????

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Sounds like he may have used #1 or #2 common grade, which is a lesser grade but still a seviceble floor. You should look in your building contract to see which grade of flooring was specified. If it wasn't specified, that's a big mistake on your part to allow the builder to select your flooring materials. Or anything else, for that matter. Because of course he will find the lowest cost product he can. Now white oak is a hardwood and it doesn't matter whether it's #2 common or clear quartersawn, the hardness will be the same. What you're probably noticing are all the flaws in the wood that are characteristic of a common grade of flooring. The foreman is correct that those floors are usually filled. You can request that they trowel fill the floor to fill all the holes and voids and that should have been done from the begining, IMO. You should take your concerns to your builder and architect to find out exactly which flooring you actually got and which flooring was specified in the architechural plans. When I do "take-offs" for a builder for flooring, most times the flooring is specified by the architect. If not, I ask the builder to clarify which grade and species he wants me to use and I note that in my proposal. To me, sounds like this wasn't paid attention to by you, the buyer, and the builder supplied the lowest cost flooring he could. A give away is using white oak as well, which is often about 10% or so less than red oak.

Sounds like a 2 common floor which will have some open knots but they should have been filled before the floor was completly sanded. If the knots are too big for your taste ask about replacing the boards, its should be done prior to the rest of finishing for optimal results. It's normal for a floor to have some filler knots are not the problem I would be worried about, the real worry about two common is when they through the wind shake at you( boards seperating lengthwise along the grain) I see more of this in two cvommon than anywhere and they will be a problem in the future.

Pencil sized holes sound like worm holes, not knot holes. This is also characteristic and should be filled. Wind shake is often caught during sanding and removed. Wind shake also becomes visible in the future, and boards are replaced. Wind shake is not a common complaint we see as inspectors.
You also said the wood is soft? the more character and knot holes, the harder the wood;;; as a general rule. Why are you saying the wood is too soft?

Wind shake is seen most often in solid wood and I can bet if you buy some solid two common oak your are going to get some, you might not see it now but wait untill a year or two of movement goes by then make that statement. I donty think many people would call in an inspector to replace two or three boards, they call the installer back and just have it done. I would imagine in the land of concrete slabs the reason you dont see it much is due to the fact most of the floors are eng or laminate.