Do y'all see anything that looks off??

Yes—For $1.2 million, why aren’t you building a custom home?

This is a builder who has started the build already. These were given to us as part of the package.

$20k for kitchen appliances seems reasonable to me. We have (Bosch) a double wall oven, 2 dishwashers, chimney hood, warming drawer, drawer micro + a Capital Rangetop for about $9K all-in. We used an existing fridge, but for $10k you can certainly get a very nice fridge - maybe not a 48" subzero integrated, but something quite high end. And that leaves $1k for a wine fridge (no idea how much those are) if you want one.

Main floor wood tile up to $3.50/square foot seems rather low.

cox5694 Where are you building this home? Building material prices are skyrocketing, fueled by recent political events.

It's not unusal to set allowances even for a custom home. We set a few realistic and several laughable allowances too if only to keep me in check and then blew most if not all. Be prepared to go 25% over for a home that size unless you intend to use really cheap stuff. Let's assume your living space is 4500sf, with a 1000sf garage. Depending on the quality of build and finishing materials I'd guess (don't claim to be an authority for all states) anything between $180-$400/sf. Taking a median of $250/sf, 4500x$250 = $1,125,000 (not including land, permits, etc.). You can see where I'm going with this.

If you can make it within your intended allowances, I would not want my DW to see this post.

GET RID OF ALLOWANCES, PICK ALL YOUR MATERIAL!!!!!

I would say get more details on the property fence as the list does not have any amount allowed. The materials used vary greatly in price. For this price point you might want something in wrought iron with some masonry columns and that will be pricy.

I would say that lighting jumps out at me - one nice chandelier / fixture and you've eaten up 25% of your budget. Landscaping also seems low for this $$$ house. Simply specifying "Delta" for plumbing fixtures seems weird - and not sure I'd be happy with Delta in a house of this $$$ (however, admittedly, I have not looked at Delta faucets in years)

And get a little more detail on the fence.

CPArtist

Thank you for laying that out, these are almost the exact questions I had but I wanted to be sure I was being reasonable.

The builder has already started the house, we are entering into contract and this was part of it.

CPA addressed it all very specifically.

My question is whether you live in a HCOLA or a LCOLA.

$900,000 for a house in a high cost area may very well have finishes with some of these allowances, which to me seem mostly too low (as well as too vague). But since the house is 5000 sq. ft I am assuming it is a more moderate to low cost of living area, and then the finish allowances seem really low.

"The builder has already started the house, we are entering into contract and this was part of it."

How has he started with no contract? If you do not have exact model numbers and details for 90% of your list, run! That house will cost you 1.6 by the time you are thru. Maybe more. That is not the way to build a house, that is the way to get steamrolled. Period. Stop.

We do not own the lot, the builder owns the lot. He is building the home that is for sale. We are at a point where he has only poured the concrete and would like to enter into contract to purchase the home after it is built.

The neighborhood is in a HCOLA

5509 sq ft is a large home. I am surprised a builder of that size home would spec 2*4 exterior walls. My husband's only 2 requests on our home were: Large deck and 2*6 exterior walls.

A $900,000 house where I live could easily have a $10,000 fridge in the kitchen, so something about this house strikes me as a lot of volume with builderish finishes.

I guess it depends on what you want. I work for someone who lives in a house that they paid about $2M for. The items that were brought in, like cabinets, counters, appliances and fixtures are higher quality. but the Build quality (millwork, doors, level of finish, etc.) is much the same as my niece and her husband paid $300K for in a much smaller builder house in a redeveloping neighborhood. I feel like my employer got Volume for his money, but not a great deal of quality. That's fine for a lot of people. It depends on what you want. What do you think of the finish quality of this builder's other houses?

It sounds as if this is a production build in a development. There won't be a lot of room for options. This does not sound like a custom build. Is there a model home in the subdivision with examples of the described items or a showroom with samples?

What is described sounds more like marketing than a contract. A contract would read Delta Faucet (Model Name) in XXX finish and tell you how many. It doesn't make any reference to the plumbing fixtures or brand. These aren't really allowances, they are production packages. Specificity is your friend. You want everything described down to the model number and number of items. You should be cross-eyed by the size of the specification list.

Let me give you an example. They describe sprinklers, they didn't say anything about wiring or control boxes with timers and electrical supply. Those cost money. They also don't provide garage door openers.

This is going to cost a lot more. I would blow through that $20,000 appliance package in a New York minute. Get the details nailed down before you sign on the dotted line.

JELD-WEN is fine. I've used them in the past in custom builds. I prefer the wooden with vinyl clad. It's a better grade. But, that's me.

I would not sign anything this generic and vague.

Will you be happy with $100 Home Depot toilets?

What about kitchen cabinets? Will they have cheaper doors or more expensive drawers? Can you design the kitchen yourself or does he have it laid out already?

Two Subzero integrated columns will get you close to $20K right off the bat. What appliances do you want?

In my area you can add another 9.5% in sales tax ... you get nothing pretty for that "allowance"!

HCOLA.....Los A. CA? Already poured the concrete. That sounds like a slab foundation. The absolute 'cheapest' way to build a house!!!!! MORE profit for the GC!!!!!

$255k for land doesn't seem like HCOLA to me. But building in CA but in a cheaper region might be like that.

For all the shock, this is very common in my area. Builder was doing a spec house and now a buyer wants in before he is done. No big deal. Spec houses are what most people live in and they are $1.2M all the time. In my area, they are bought all the time after being done.

Robin - it certainly could be a poured concrete basement or tall crawl which would be the most expensive foundation. And I am building a custom house with a slab - oh the horror.

I am building a similar price house. Appliance budget $35k which we will exceed. My last build (less money than this house) had a $18k landscaping budget but that included sod/irrigation. Hard to say without lot size though and this is hugely regional.

2x6 walls in the south are not really necessary/standard. I am doing it in NC but it will be one of 3% of houses that are that way. And we are not deep South where it is even less important.

Good luck but shore up some (all?) of those specs. Builder doing a spec house has to make it at least look nice - if he is already under contract with someone, he doesn't even have to do that.

Don't do allowances. Do the work right now to specify the actual items you want (down to the part number and color, providing links to suppliers where it might be in doubt (and to show that you know that a faucet can be had for $200 vs the $400 his brother-in-law's supply house wants to sell it to you for)) and then get an actual price. It will be a couple days of hard work but will save you immensely in downstream irritation and unanticipated cost overruns or change orders.

If this is a builder with finish choices in a design selection area, your choices are narrowed down to what they offer. This is fine. Some people on this site would only consider a true custom build with options to choose any available product and make comments that are hurtful to folks choosing from a builder who has narrowed down to fewer options. If your builder offers choices selected by a designer and in looks that you like, it makes the process much simpler to choose between a few options versus the world of possibilities. Take the comments on this site within the perspective that it may not apply to your situation. :) Have fun picking your finishes! lafdr

That sounds like a slab foundation. The absolute 'cheapest' way to build a house!!!!! MORE profit for the GC!!!!!

Your lack of knowledge is once again showing. Slab foundation may or may not be a less expensive way to build, but in many parts of the country, it's the best way to build. For example, here in FL slab foundation is quite common because no one builds a basement, unless we want a basement that's a swimming pool.

Allowances, in my opinion, are only good if you are the one source the material and holding yourself accountable. Otherwise there is no incentive to stay within that allowance. Is there something within the contract that says what happens when things go over? We are currently getting screwed by this as we face unforeseen overages.

I’ve budgeted $3.50 per sq ft for my flooring in my 1500sf $145,000 house build. That seems way too low for a $1 million plus build.

I wouldn't enter into any contract without first getting a real RE lawyer on top of it. There is a ton load of profit, for the builder, in this. Has he/she told you his overages? A lawyer can deal with that, as well as making sure all the liens are satisfied before you ever buy.

Frankly, there is a lot of cheap materials planned for this property. Allowances are a great way for a builder to make huge, hidden profits. Some of these folks will tell you they "prefer" not to disclose their profits, as they build them into the contract. That's a recipe for disaster.

Laurie is correct. Get a lawyer!

Please listen to @Alison. Allowances are pure evil if going over incurs Change Order penalties. This should be full custom, and probably using cost-plus pricing.

cp....you HAVE NO idea what you're talking about!! I KNOW how to build a house! A slab is the absolutely the 'cheapest' way to build a house!! I know this for a fact! GC's use this to make 'more' profit instead of a crawl space......period!

There aren’t many professions around where folks aren’t trying to maximize profits. I think what you mean to say, is that slabs are most efficient in certain parts of the country. I live in So Cal, where neighbors a stones throw away live in houses in the multi millions. All custom. All on slab. Every last one of them, that I have seen anyway. Would you build crawl spaces here?

Robin - we live in the same general area. Even the most expensive spec and custom builder( that I know of) has switched to slab. It is about air sealing and longevity. Go spend some time in your crawl and ask - "Why would someone want this area?" Now - when the land is sloped, it makes sense. But in a flat area, it just introduces extra cost and steps. There are nice ways to do slabs and not nice ways. The not nice way puts you right on the ground with no elevation - it can seem cheap.

BTW - I am building cost plus and doing a slab.

Allowances are not necessarily pure evil - as long as you have control where things are purchased from. And going over means Change Order penalties? - that is just mean and absurd.

Please tell me my slab was cheaper than a crawlspace - split / thermally isolated footings with non-conductive fiberglass reinforced rebar sitting on a mud pour and leveled. Wrapped in 4" of foam imported from Finland.

After that, a mud pour under the slab. 8" of imported insulation foam. 15 mil Stego wrap vapor barrier and proper taping / sealing. Rebar on 1' centers for a slab either 4" or 8" depending on the building.

I'd have KILLED to "only" pay for a crawlspace.

In the past, slabs may have been associated with less expensive construction. However, indoor air quality issues and energy efficiencies are driving new / better building techniques and that means a slab and putting your "systems" in conditioned space. (and really - all houses with basements are built on a slab!!!)

Making sweeping generalizations don't serve anyone well here.

Back to allowances.

cp....you HAVE NO idea what you're talking about!! I KNOW how to build a house! A slab is the absolutely the 'cheapest' way to build a house!! I know this for a fact! GC's use this to make 'more' profit instead of a crawl space......period!

I'm sorry robin, but your ignorance about current building practices along with your hatred of contractors has jaded you from even learning about current best practices.

Coastal Best Practices

You may "know it for a fact" but if you actually do some reading you'll see that no, in reality, a crawl space is not considered best practices for many areas. As for areas inland, I can't answer that as I've always lived on the coast.

We built a home in an area with unstable soil. The slab was under tension with rebar and cables. There were no pier and beam foundations in this area due to the soil conditions. This included the million dollar homes. You can't make accurate sweeping generalizations. Techniques are local based on local conditions.

We are building a house on a slab. Never heard of anyone doing anything different in our area ever.

Slabs and basements are unique to specific areas of the country. In the South, no basements do to high water table, it doesn't necessarily mean the contractor is trying to go cheap. I live in the Midwest and basements are standard here. Basements and slabs are similar to accents, depends where you live.

It can also be wrong to generalize for a specific area! Many who have lived in southern CA for a long time have never seen houses being built with basements ... well, they aren't looking really closely at new construction.

80% of new homes built in my area of LA have large finished basements. Even spec houses will have them. Why? Profits of course. It maximizes the size of the house on small lots and the basement space is priced the same as above ground space.

We received our allowances contract today and we feel like the numbers are off for the home cost.

You need to do some homework and decide for yourself whether the items YOU PERSONALLY envision in your new home can be bought for the amounts discussed.

It sounds as if this is a production build in a development. There won't be a lot of room for options. This does not sound like a custom build.

And that's okay ... as long as the buyer understands what he's purchasing and has realistic expectations. This board can be pretentious at times.

Slabs and basements are unique to specific areas of the country. In the South, no basements do to high water table, it doesn't necessarily mean the contractor is trying to go cheap.

Yeah, as a life-long Southerner, I assure you no one has a basement around here. The soil doesn't support them.

We have a crawl space now, and it's not a great thing. When we received $400 water bill (and a similar electric bill), we looked into the crawl space to discover that our water heater was leaking, and we had a 2400 sf 3" deep swimming pool under our house. My husband HATES going in there for anything. We're going with a slab for our next house.

Admittedly, a slab has its own issues, and it is often the cheapest method ... doesn't mean it isn't the right choice.

I have always lived in places where full basements are the norm - crawl spaces and slabs especially are the odd man out. This is due to frost and so forth. I like full basements as it is way to get more space - be it for storage or living space. Depending on your land you can also get full walk outs or daylight basements. But in no way do I think then that crawl spaces or slabs are inappropriate elsewhere or “cheaper”. More efficient maybe in some places, where they are better suited to land and climate.

Anyway, OP, you really have to know more what IS Level 1 quartz and Level 2 granite and so on to know if those allowances are reasonable or not. We are building with a production builder on a signficantly smaller budget (and smaller house) than yours (using one of our builders own plans with slight modifications), but we also know their own “standard” granite or quartz for example is what another production builder or two in area considers their own “Level 3” or “Level 4”. Ditto with their flooring, what is their Level 2? Again, our builders standard flooring options are ones that would be a significant upgrade with another builder.

What is the “horizontal fireplace”? We upgraded our fireplace to a wider one, with a blower fan, and higher BTUs as we weren’t happy with the standard offering, and it was a significant price upgrade as our builder does not get the same discount pricing as they do for their standard model. So are you happy with the standard or not?

What is “within reason” for closets? That is awfully vague contractual terms. How many lighting fixtures do you need - I assume a lot with 5600 sq ft...a couple of nice chandeliers can eat up a good portion of your budget. What kind of baseboards are you getting in “non-main” areas and how much is it going to be to put 8” everywhere?

And on and on. You really need to find out what standards outlined you may be happy with, and details of others to also know if you are happy (ie WHAT Delta faucets...they make more than one kind!) to really even guess if allowances are reasonable or not.

I think you could add a 1 in front of your landscaping budget and it would still be very low. We just did a big relandscaping project at our home last year and it was $50K. Our home is in the price range you describe. Our lot and home probably have equal value. Our home is about 3600 ft, and older. We are working on a remodel now. I'll give you might thoughts for the little they are worth as relating to my experience in our remodel.

As for the delta faucets, I probably wouldn't be happy being limited to only one brand. They do make a nicer line and a cheaper line. You can find the nicer stuff at a fergusons plumbing showroom or the less expensive stuff at Lowes. I would try to get a monetary allowance instead.

For the kitchen appliance allowance, shrug. I'm currently struggling to stay in a similar budget for my remodel. Thumbnail of what Im' looking at is 48" fridge $11k dishwasher $1200, wall ovens $4, range top $5/6 ---- this is more along the lines of Jenn Air, GE Monogram with a more expensive range--- not subzero wolf, dacor, thermador. I really don't know your expectations. Our kitchen cabinets are about $30, $10 for the mudroom and the rest for the kids bathrooms. The "rule of thumb" bantered about is that the kitchen is 10% of the value of your home.

I think the wood tile price for the main areas is pretty low (even assuming it doesn't include install). I would look for a budget more in the $5/6 range. That is what I ended up with for tile in my laundry and mud rooms. My kids bathroom is just under $10. For wood floors I'm looking at $9-$12

$18 a sq for backsplash is doable, but not generous. Think nice subway tile, with a bevel or some character. The beautiful marble mosaic type things you see all over photos are $100+ a square foot.

I think you really need to get more specific info before signing on the dotted line. You might be totally delighted in this build! I'm certainly not saying it not the right price -- but as things progress you will get more involved with the details and you don't want to be disappointed.

As has been said, these "allowances" aren't really allowances at all, they're simply a vague description of "features".

Unless and until the OP does a detailed inventory and cost analysis it will be impossible to truly know what the quality of construction may be. If the OP simply accepts this vague list and hopes for the best, there is certain to be misunderstandings and disappointments or worse.

Generally speaking, hope is not a good strategy.

Good luck to the OP. Get busy with your homework and costing analysis.

$6500 for "landscaping?"

Blink...blink...