When can a builder provide a realistic estimate?

17 years ago

We built a home 8 years ago, and we're gearing up to start building another home. During our first home build, we got ballpark estimates from 5 builders just using the internet renderings. We moved forward with one builder who was able to honor his original estimate after we ordered the full drawings and the builder's in-house architect made minor modifications for code.

Fast forward to the current time...We got rough estimates from 3 different builders by sending them a stock internet plan and desired features (flooring, windows, etc.). Of course, the one builder that just could not give us a number is the one who is the sole builder in the neighborhood that we've now decided is the best location for us. He's going to live in the neighborhood and its relatively small (end result will be about 30 homes) so I'm trying to not hold the "sole source" issue against him. So far seems like a very nice upstanding builder, and he gets rave reviews from other in the neighborhood.

Issue: We told him that we have a strict upper ceiling of $625,000. At first he said there was "no way" he could build a home in this neighborhood at that price, but when we drilled down to the details he conceded that it's probably possible with the type/size of home we want to build. Still no price estimate, though. Then he had us walk through a home that was similarly sized (4 BR ranch + FROG) and told us that if we can keep our main floor of the ranch to a similar size then he thinks he can build within our budget. He sent us to an architect that he works with pretty consistently to have a basic plan drawn up. We thought this basic plan would be used to finally nail down a price...guess we were wrong. When we called today to report that the basic plan is done, he said we should go back to get more detailed plans showing joists, etc. so he can do an accurate pricing.

I personally would like a ballpark at this point just so we can know whether we need to throttle back on some features like the roofline, windows, and materials (or basement?!) before we go too far with these detailed drawings... The good news is that the builder is bearing the cost of architect at this point; cost is passed thru to us only if we go forward with a contract.

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Comments (3)

marthaelena
17 years ago
...and if you do not agree with the builder - Do you know how much you'll need to pay the architect?
I think you have to be careful or talk about this before you go any further. I think that if everything is not clear, you'll be in the builder's hands.
mainecoonkitty
17 years ago
From very similar dealings with a number of builders, I think you need to be very careful about the builder low-balling the ballpark cost estimate just to get your business and then half-way through the build, telling you that you're going to be way over budget. The only way to get an accurate estimate is to make as many of the material and finish selections, nail down a plan, and have him price it out with those included. Otherwise, it's nothing better than an educated guess on his part. You need to be as detailed and specific as possible to make sure what he quotes you is a realistic price.
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mel_bc
17 years ago
I have only had one building experience...we just moved in 2 weeks ago. I can't imagine proceeding with the build without knowing the costs. I would have to know if we had enough money to complete the build. Our builder took our plans and had budget drawn up which outlined all costs..ie windows, drywall, framing etc. He sent the plans out to get estimates from all of the subtrades so that he could get us an accurate estimate. The estimate seemed a little high but he explained to us that he could have given us a lower estimate in order to attract business as many builders do but that was not his way of doing things. In the end the build was less than estimated and he passed those savings to us. I would do a little more research in order to find someone who could give you an idea of how much it would cost to do your build.