It's a Big Red Flag that you think that. the pricing that you're being given by the successful guys is ''out of line''. Building costs more than buying existing. You need to do a lot more research befor you are ready to talk to builders. Beware of allowances. They will eat you alive on the cost overrun front. You need to know what the items that you want to use cost, not the builder's seconds from a discounter.

Charles, there are some good out of the box suggestions in that article. Thanks for posting.

Sophie, I probably should have said I don't want to pay the overhead/commission premium of the big guys. There are plenty successful smaller and mid sized builders that I'm trying to seek out. Although they are more spec homes I can see past sales history and get a pretty good pulse of the market.

I'm a bit further in the process than I may have eluded to as well. I already have copies of proposals with all the bid items outlined in the contract and there aren't many allowances in the contracts. I'd have most items outlined in the contract to begin with. Some lot improvements, lighting and flooring is about as far as I'd go for allowances.

Re builders -- since I opted to go with a kit home, I had names of GC's who built these homes. I went and saw homes they'd constructed - make sure the homes are finished, and not still under construction, although you should look at a few of those too - but the main thing is to talk with the home owners, and if something is still under construction, they're not likely to be as forthcoming as someone who has lived in a place for at least four or five years. (They still need the guy to do some more work!)

The houses I found most informative weren't the high end SHOW houses. Ask to see something in the range you are looking to build.

In my case, the two GC's I liked - I chose the one that seemed the hungriest to me. He returned phone calls on a regular basis. Plus, he's also an independent wood worker with a truly creative bent, and I am nearly certain to be hiring him for cabinetry that wasn't in our contract.

He's been following through on communication, even with contract signed and all. (There are things you still need to check and follow through on -- this would be true with ANYONE you sign aboard.)

We are at the choosing a builder time too. We have put out requests for 4 bids. 2 have come back so far. they are approx. $88000 apart.

The higher cost builder has "allowances" that are way too low. Ie) I've priced a kitchen with a company regularly used by builders around here and its approx $21000. Its not fancy. Its budgeted with the more expensive builder at $15000, So Id already be $6000 over. I mentioned to higher builder that my big splurge for our build was going to be windows. There are approx 21 windows in our build. Hes allotted me an allowance of $8500. There is no way I am going to meet those budgets and Ill go over and its already high.

Other guy charges a set fee and basically just contracts out the work. A little more scary however he has lots of references and is known for telling you like it is. No allowances but gives you a ballpark low-high range depending on your finishes and friends and colleagues who have used him highly recommend him. A little more scary since nothings really written in stone but hes given us an estimate and its still 65000 less than builder A and thats with higher end finshes.

Still waiting on a couple more to come in.

I've been interviewing builders as well. Keep my interviews short.

One builder priced at 160k project - another priced at 380k, another priced at ~480k.

Offered 10% Overhead and Profit builders 2,3 stated no way. Both hated that I have the cost from a foundation company - they tried to double it. The 1 - builder only one house so far. Not sure if I should GC. I am familiar with trades. Know pretty much reliable amigos: framers, carpenters, drywallers, painters, siding, roofers. Can buy and install my own HVAC and electrical, plumbing, finish carpentry.

So I am working with a fourth builder. Not very impressed. All prices coming out of the builders are heavily padded. Still thinking of GC-ing however it is problematic with the banks[may be forced to avoid these].

What the bloody hell.My advice to you is avoid any builder that can not show you moderate or low priced projects.

I am thinking of doing my own bids to at least to see if $160k guy is full of it [even if he can get me an envelop that would be worth it]. Saving 300k over builder 3 is very tempting.

I now have my top two builders keeping an eye out for a third to vet out.

One is more custom, I feel there is more trust working direct with the owner as well. However not as much of an opportunity to walk the floor plans as they don't have models for show only in progress houses that won't match my plan. They shy away from contacting homeowners (similar past plans) as it gets to be an inconvenience for the homeowner. Which is understandable as they focus more on the relationship. The builder's reputation is quite phenomenal.

The other is priced $30K less for a comparable home. Higher volume, have to work with a sales rep but I get to walk models. I'll have to take a fine tooth comb to ensure proper finish as its the only thing I can pinpoint that would signify the price deviation as I've already credited/subtracted bid items. The subs they list are well known and the builder seems to have a good reputation.

Are there small things that are often overlooked and but really impact the quality or price of the home?

An example that is obvious to me is windows. I think folks overlook the fact they are getting a builders grade single hung but in reality would want to get a better quality window that is double hung (perhaps not for some people). But bottom line it can effect the price of a home by $10 to 15K