What do Professional Custom Home Builders do?
- Fully Customized Home Builders.
- You won’t often build the exact same house plan twice
- Are often working with the owner’s plans or specifications, or those given to them by the architect
- Are almost always on customer-owned land
- You tend to prefer smaller outfits and higher-end items.
- These contracts are usually written cost plus a percentage or contractor fees.
Why Do Custom Home Builder use Cost-Plus Pricing
1. Budget – Because their work is so specific and varied, they don’t always know how to budget.
2. Project-Based – Because their projects are unique, they often base their estimates on labor and material bids from vendors and subcontractors.
3. Customer Financing – Customers often provide financing.
4. Sales by Owner – They may not have a separate sales team from the owner/operator or a model homeowner.