Plans → Specifications/Selections → Estimate and Price
Now that we have the Blueprints, understand how we are going to build it (Specifications) and made the Selections, it's time to crunch the numbers.
If we've done our homework right, there's no magic here. Some items are sent out for the vendor and/or subcontractor to provide a hard bid, and some items are estimated internally. Regardless, it's our buying power, attention to detail and specifics along with excellent communication and reputation with our vendors that allows Sullivan Homes to be super competitive in pricing your new custom home.
The separate components to pricing a new home are 1) the physical cost to build the home, 2) the cost of the land unless the land is already owned by the homeowner, 3) the cost of non-construction items such as engineering, permits, design, 4) and the "soft cost" to build the home such as realtor fees (if involved), finance cost (if the builder is financing the construction), closing cost, title cost and other misc. cost.
A very important conversation with a builder is to identify Exactly what they mean by Cost. Does it include the land? Does it include financing? Does it include Realtor commisions? How is the closing, title, insurance, etc. cost handled?
Once the total cost is calculated, we then have a pricing meeting with our clients to review exactly what is included and what is not included in the stated price.
Hard Contract - at Sullivan Homes, we only provide a hard dollar amount for a new home. We call this a Hard Contract. In having a Custom Home built, you want an exact dollar amount that it will cost to build your dream home. Don't fall for the "Cost Plus Contracts".