Q. Do your customers normally have overruns or overages?

A. Nationally the average homebuilder has overages that equal approximately 10% of the contract. Most professionals in the industry and most bankers will tell you to budget an extra 10% for overages.

   I have found that in our area that due to the procedure used with allowances that most folks go well above the 10%.

   However we have customized our pricing method much like we customize our house to fit our client. Rather than give simply a “standard” allowance figure for different items, we try to spend a little more time with you the client, on the front end and learn what your taste are so that we can give you allowances and a final price that will be sufficient. We call our price a “realistic price” or a “true end price”. With this in mind our “average” client now stays within 3%-4% of the contract price.

Q. What do you include? Is it truly a “turn-key” job?

A.
· We help you find a “favorable for building” lot if you don’t already have one.
· We help you with the design of your home.
· We give you a budget dollar amount (this is approximate).
· We draw the blueprints.
· We then do a contract with a final price.
· We have the lot surveyed.
· We submit and pay for all paperwork and permits as it relates to regulations and requirements set forth by the development, state, county, and/or city.
· We include worker’s compensation insurance, general liability insurance, and builders risk insurance.
· We include septic/sewer system, utilities, and utility bills (water and electric) during construction.
· We clear the lot.
· We construct the home per blueprints, specs/contract, and customer’s satisfaction.
· We bring in topsoil, sow grass, plant shrubs, and pour the concrete drive.
· Yes, we build “turn-key” homes.

Q. What is your price?

A. This is a good question but hard to answer. Because every home is different and because every homeowner’s taste is different we feel it can be somewhat of a disservice to generically throw out prices. After seeing some form of a house plan (it can be as simple as a magazine clipping or scratched out on paper) we can then give and approximation. However it is best to meet the client, get to know their likes and dislikes and then work on a price.

Q. What is the payment method?

A. $3,000.00 due when signing the contract.
20% due when ready “to start”
25% due when house is “dried in”
25% due when the drywall is complete.
20% due when cabinets are installed.
10% and overages are due when house is closed.

Q. What if we live out of town during the construction of our home?

A. Typically 80% of our homeowners live out of state and are building “long distance”. Because this has been the trend for so long we have arranged our business and/or process around long distance owners. We do things such as take photos throughout the different stages of construction and email them , so you are always up to date on the progress of your home even if your not here.

Q. What is “cost-plus” building?

A. “Cost-plus” is signing a contract that says you and the contractor agree that the contractor is to receive a certain percentage of the cost for him / her to oversee the project. The contractor gets billed for something (this is the cost) and then adds his/her percent (this is the plus) to it and you write him a check. The percent usually runs between 15% and 22%. In other words if you agree on 15% and you build a house that the contractor says cost him $200,000.00 you will have paid him $230,000.00.

Q. Will you build “cost-plus”?

A. I suggest that it is not in the best interest of the owner. Would you sign a contract with Wal-Mart, Sears, or Exxon that said for you to pick out what you want, then they would figure the cost, and add their percentage and send you the bill. In all sincerity this is the best and safest way for the Contractor. However, due to the reputation by association we are really reluctant in building “cost-plus”. “Cost-plus” opens the door for unnecessary materials being used, excess waste, for subcontractors and suppliers being allowed to overcharge, and for bogus invoices. Unfortunately, a few contractors have given “cost-plus” this kind of reputation and we would rather not be in that mix. However, I will add that building cost plus is a trend that a lot of builders in our area are moving toward and we too may be forced to consider this option in the future.