Pricing Techniques

All builders/dealers have very similar costs associated with building your new home. The major difference in pricing is primarily in the cost of the features that are included with the home. A simple example is gutters and downspouts on a home. No manufacturer includes these when they build the home as they would be too easy to damage during delivery and set-up of the home. If they are included in your home package they are added by the builder on site and would be reflected in the price of the home. We will describe some of the pricing techniques used in our area.

CASH and CARRY: A builder sells his homes at fantastic low prices but does not include anything with the home. The customer is responsible for and has to pay additionally for all delivery and set-up expenses along with all on site work such as the foundation, water, sewer, electric and gas meter hook-up. These expenses are NOT always fixed costs and can cause surprises and cost over runs to the customer. The builder/dealer also requires that the home be paid for in full BEFORE it is delivered to you!

QUICK and EASY: Several builders will include the delivery and set-up expenses in their prices; however, they do not provide any of the on site items to make the home move in condition. These builders may quote you the price of the foundation separately from the house or they may give you a list of contractors for you to contact on your own. Such things as the foundation, connection of the water and sewer lines to the home along with the electric and gas meters can and do add thousands of dollars to the final cost of the home. If you choose to purchase a home in this manner, YOU become the general contractor and are responsible for the proper completion of the entire project. If there is a problem or something is not right, it is your problem and not the builders. Unless you are an experienced contractor, the chance of saving a significant amount of money is very small. The builder will expect to be paid in full when the home is delivered even if the home is not ready for you to move into because the site work is not complete.

BUILDER/GENERAL CONTRACTOR: This is a one stop professional builder that can handle every aspect of the building process for the customer. The process can include everything from obtaining building permits, foundations, wells, septic systems, driveways, garages, porches and gutters. This builder takes pride in SATISFIED CUSTOMERS and will provide the experienced people to build you a quality home and then stand behind their work and that of the subcontractors. In-house warranty service that incorporates drywall repair will be provided at no additional cost to the customer. Your builder is RESPONSIBLE for seeing that the project is completed on time and on budget as well as customer satisfaction. If any problems develop, the builder will solve them. Most banks prefer this type of arrangement because experience tells them that the customer’s needs and expectations are more closely met when an experienced builder is responsible.

New home building is never quite as easy as we would all like it to be. However it does not have to be hard either. You owe it to yourself to ASK WHAT IS INCLUDED and WHAT IS NOT! NEVER assume anything when you are considering something as major as the purchase of a new home.