The most common and often first question we get as a builder with over 35 years of experience is how much it costs to build a custom home. My answer is always the same, I don’t know.
Costs vary, it’s like asking how much is it to buy a car? You can’t answer without more detail like size (compact mid-size or SUV) and model (entry level or luxury or even a high-end supercar). The cost of a custom home works the same way, cost varies depending on a number of factors.
The cost to build a custom home is often expressed as “price per square foot.” And the range to build can be from $250 to $500 or more a square foot. But what does that mean? The difference is the quality of the build and the finishing’s that go into a home. If you want quality, then expect to pay more. And yes, when you walk into a well-built home you can tell the difference.
Rs Homes Pricing Model
RS Homes works a bit differently from other builders, we work with a client’s budget. We ask ourselves two questions: first, can we do a job we will be proud of; and second, can we give the client what they want or need for their budget. We hold ourselves to a certain standard, and we work with our clients to balance high quality and their budget.
Many builders will build cost plus, you pay the costs and give the builder a management fee. The problem with that scenario is that the builder does not have a vested interest in keeping to your budget or if the cost for materials goes up after quoting, you pay for it.
RS Homes, however, uses the fixed cost method. Once the contract is signed and drawings are done, RS Homes will give you the price for the build plus a generous allowance for finishes like flooring, fixtures, cabinetry etc.…. The price will change only if the scope of work changes like adding a wine cellar when originally there was none or deciding to move walls.
Extra Costs and Expenses
Be prepared, there are other fees on top of the build cost: survey, permitting, arborist, landscaping, as well as other outside costs that the city might require. These are not included in the cost of building per square foot.
We always recommend you put a budget together first before you ask what the cost is. Ask yourself what you want to invest in your new home. Then put a wish list together of what you want. We look at your budget, your wish list and then can come up with an estimate of what can be done for your budget. Our clients invest more in their home because they want quality. We work with our clients through the design process, that means we can make sure what the architect designs stay within the clients’ budget. We give a healthy allowance for kitchen, fixtures, flooring etc. so the clients know exactly how much can be spent. The fixed cost means that unless there is a change in the scope of work, the cost won’t change, even if building material costs go up. We will take the risk of that, not you.
What do we mean by the scope of work? It is not any small fixes made during construction, instead, it is large-scale changes that affect the structure of the house, for example, adding more square footage in design or changing the walls once construction has begun or adding a wine cellar. Before any change like that is carried out, we always give a change order that must be approved by you. The change order details the cost and how long the project will be delayed (if delayed) due to this change. This way the client always has control of the budget.
Consider This Before Getting Your Final Quote
When comparing builders, we suggest that besides quote, consider the following factors: Do I like this builder? Do I trust this builder? Can I work with this builder? Will this builder service me after the project is done or will I never see them again? Can they give me what I want within my budget?
At RS Homes, we understand that building and renovating is a long and sometimes frustrating experience, it is our job to hold your hands through the process/ and use our expertise to ease your worries. That starts from the very beginning when we talk about your budget and scope of work in our first meeting. Working this way leads to a better experience when building or renovating your home.
