Building your first home can be a very scary process, from choosing the right builder to selecting the right inclusions & staying within budget, it is easier said then done. Asking your building consultant a few simples questions before paying your deposit can save you a lot of stress in the long run.
What is the Problem With Allowances?
Most building companies start the process with a Base Price, which generally means every component of the house has an allowance, in most cases the allowances used is well below the Actual price of each item. It is general practice to keep these allowances low to secure a client into signing a Preliminary Building Contract, where only then the next stage of the pricing process begins.
What Questions Should You Ask Before Paying a Deposit?
Once a Base Price has been accepted most builders will require the potential client to pay a non-refundable deposit. On average this deposit can range from $1000 to $5000 depending on the builder. This is the time where the hard questions need to be asked:
1. Are all site costs included in the base price & if so is the price fixed?
2. What soil type does the base price include and is it fixed?
3. What individual items are excluded from the Base Price?
Once a deposit is paid it is very difficult to cancel a contract without losing the full deposit. Site Costs & Soil Type Allowances are the big ticket items where builders margins are hidden, unfortunately most builders don’t disclose true site costs until they have received a deposit.
Why Build with Callaway Homes?
We have made the building process very simple and transparent. All our designs contain fixed-price Site Costs and fixed-price Soil Types. Our inclusions are true Full Turn-Key meaning each individual item is a fixed component rather then having an allowance attached to it. Our First Price is the final price and we don’t ask for a deposit up-front.