How We Price Custom Homes at Cruz Built
How We Price Custom Homes at Cruz Built
One of the hardest parts of getting started on a custom home is figuring out what it should cost. Talk to a few builders, and you might get very different answers.
Some of that comes down to the home itself. Some of it comes down to how each builder prices their work and what’s included in the process.
I can’t tell you what your home will cost without going through our quoting process. But I can explain how we approach pricing at Cruz Built and why we do it this way.
Why we use fixed pricing
There are a few common ways builders price their projects: cost plus, fixed fee, and fixed price. At Cruz Built, we use a fixed price model.
That means we put a lot of work into figuring things out before construction starts. We work through the details and calculate as much as we can up front so you have a clear understanding of the price and what it includes.
It takes time. But we believe that work is worth doing before we break ground.
What about the things we can’t predict?
Some things are hard to know until we get started.
Digging is a good example. We can plan for normal conditions, but we can’t see everything underground. Rock or an unexpected buried line can change what the work involves.
When something can’t be priced with certainty, we talk about it. We establish an allowance or budget, explain what we expect it to cost, and identify what’s still unknown.
Building material prices can also fluctuate. These are the kinds of variables we want to discuss up front so you understand where there may be uncertainty.
More planning before we start
One tradeoff with this approach is that getting started can take a little longer. We’re spending that time working through the details.
The benefit is a clearer plan once construction begins. In our experience, that helps the work run more smoothly and reduces gray areas and miscommunication between us and the homeowner.
Our goal is for the final cost to stay as close as possible to the original proposal. A well-developed budget also gives you a clearer starting point when you’re planning financing.
What goes into our price
The price of a home also reflects how your builder manages the project.
At Cruz Built, we want to anticipate your needs. If you’re having to chase us down to find out what’s happening with your home or what’s next on the schedule, we feel like we’ve missed the mark.
We use builder software to share updates and keep project information accessible throughout the process. That communication is part of the experience we’re working to provide.
The people doing the work matter, too. We work with subcontractors we’ve personally vetted, and we take care of those relationships. If we need to bring in someone we haven’t worked with before, we communicate that with our clients.
Quality and craftsmanship should be a given. We care about those details, and we care about what it feels like to work with us along the way.
If you’re considering a custom home, remodel, or renovation, we’d love to hear what you have in mind and see whether we’re a good fit.
Watch the video for a walkthrough of our pricing approach.