The SQFT base price most builders provide homeowners for Custom homes, Additions and Major Renovations may appear to be quite reasonable but you could be in for quite a shock when the final cost of the home has drastically increased. The reason for this is due to the fact that most base price quotes don’t include many essentials.
It’s important to know exactly what you’re getting into before signing any contracts. You need to know exactly what is and isn’t included when it comes to the base price since many quotes leave out additional costs.
There are many builders and renovators which appear to offer fantastic deals due to their relatively-low base prices. However when it comes time to build, you may find it doesn’t fit into your financial budget. In fact, some homes may even end up costing double the provided base cost.
It’s generally considered a much better idea to deal with a builder who provides DESIGN-BUILD services and includes all costs of the project in their quote and a very detailed scope of work. This provides you with a realistic number from day one and you’ll know right away if you can build it within your budget.
With all costs included in a quote you’ll soon realize it may be higher than many base prices you’ve seen, but you’ll have the peace of mind knowing this price won’t change along the way. The price you’re quoted will basically be the price you pay which makes it much easier to plan for financially.
Base prices can be misleading
Like most salespeople, contractors usually advertise a low base price to attract the attention of potential clients. The lower the price, the more people who are usually enticed into a deal. A low base price will almost certainly rise when the builder has included all aspects of the finished project.
You may want to compare building and renovating your home to purchasing a new car with a low base price. As you may well know you’ll suddenly be asked to pay for things such as rustproofing, heated seats and steering wheels, a CD player, and freight and storage etc. Your new car may rise in costs by as much as 20 per cent from the advertised base price and newly-built homes are often similar.
Builders who construct custom homes are often perceived to be more expensive than those who offer low base prices but that isn’t really the case when you consider the final price of the project. The big difference being that low base prices don’t include everything.
Examples of this could be hardwood flooring, carpeting, stone tiles, kitchen backsplash, plumbing fixtures, windows and appliances etc. When choosing specific items with your contactor, you may find an upgrade cost will be added to the bill.
What is a base price?
The advertised base price is basically the minimum cost of building the home. It’s considered to be the starting point and it typically includes standard or basic items and features only. Each builder may consider different items to be standard however, so it’s important to ask exactly what’s included. Those with fewer basic items will typically offer lower base prices.
It’s important to know if things such as Municipal fees, permits, site costs, flooring, design fees, and the driveway etc are included in the base price. Most home buyers prefer to deal with a builder who provides them with a fixed price when it comes to site costs and other items.
So the next time your attention is grabbed by a low base price from a contractor, be sure to find out exactly what is and isn’t represented in the cost before agreeing to anything.
About Novacon Construction
As a leading custom home builder and renovation service in Toronto, our mission is to build gorgeous houses from the ground up. We want our clients to live comfortably and safely in the home that fits their needs and lifestyle. Instead of purchasing a cookie-cutter home and having to adjust it to their needs. Contact us today to schedule a free consultation.