How Much Will It Cost?
Home pricing is a complex subject. Here’s how we answer the most common question.
One question we get a lot is “What’s the per-square-foot cost of your homes?” Some potential clients come with numbers they found on the internet. Others quote Realtors who appraise and advertise houses by the square foot.
It’s an understandable attempt to simplify a complex subject—but when it comes to custom homes, this approach is too simple.
Production builders do often price homes by the square foot. What the potential client may not have considered, though, is that these companies are simply product manufacturers. They build the same plans over and over. Like car manufacturers, they offer relatively few models and limit the number of options available for each. This allows them to calculate the cost of each model and option to the dollar, leaving little to the imagination.
Custom building is different. Professional custom builders rely on proven management systems to finish a home on time and budget, but creating an accurate budget is as much craft as science. No responsible builder will quote a per-square-foot price without ALL the information, because doing so would risk misleading the client.
That’s because a custom home is not a product—instead, it’s the physical realization of a particular client’s dream on a specific site. Each client’s dream is unique, so the only way to estimate the cost of making it real is to ask dozens of follow-up questions.
These questions start with checking assumptions about what the client means by square footage. Do their assumptions include the garage, or the front porch or attic space? Also, do they understand that prices for excavation, utilities, permits, and engineering vary greatly, depending on the site and the jurisdiction?
Once the assumptions and variables have been clarified, we ask for a general overview of the home they’re envisioning. Is the floor plan complex or simple? Is it a traditional two-story colonial with dormers and intricate moldings or a modern structure with a flat roof, lots of glass, and minimal trim?
Finally, we need to define the level of interior finishes they want. Some people give a nondescript answer like “medium” or “nothing over the top.” This is a good place to kick off a more detailed conversation about expectations. A professional builder can help refine those expectations by starting with easy questions, like the client’s preferences between two levels of plumbing fixtures, flooring, windows, or exterior cladding. The answers will tell us what to ask next.
After sorting through the topics above, we may be able to show plans and photos from similar homes we have built in the past. And we can often provide a ballpark estimate of what it would cost to build that home with their finish specifications on their site.
The key word is “show”—we can’t do it over the phone. The clients need to spend some time with us before we can provide a realistic idea of what they can get for their budget. Regardless of whether they ultimately decide to build with us, this is time wisely invested.
Building Success 101
Q: Why do so many products need to be ordered ahead of time?
A: Manufacturers and dealers stock a lower variety of products than they once did. There are various reasons for this—for example, just-in-time manufacturing and inventory management—but the bottom line is that a lot of items can’t just be picked up at the store. The order-to-delivery time can range from a day to a several months, depending on the product and the manufacturer. That makes timely selections crucial.
By: Bryan Phillips