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re: Builder Asking About Budget on House?
Posted on 3/2/14 at 8:12 am to guttata
Posted on 3/2/14 at 8:12 am to guttata
quote:
You should be looking for a flat fee builder. Someone who says I will charge you x amount to build that house. I've never understood the % guys. Why should they make more money just because you picked more expensive hardware or better flooring?
If I were a home builder, the only way I would ever do a "flat fee" project is if the buyer agreed that once we signed the contract, the next time I would see them would be at closing. Flat fee means fixed and final scope, and an inflexible project schedule. Otherwise you're going to need a clear understanding of how change orders will work and what the builder will charge for them.
The problem with the "expensive upgrade" scenario is the builder typically incurs added project management overhead with custom items. Lead times are longer, provisions have to be made for installation, finishing, etc. An elaborate chandelier that you had imported from Italy is a much more complex install than a cheap pendent you picked up at Lowe's.
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