Custom home building allows clients to customize for the individual needs of their family. In order to have a successful project, it’s important to know where and when to save money. Below are a few frequently asked questions to help maximize the home building experience and minimize spending.

Q: I have a limited budget; can I still build a custom home?

A: An outstanding home builder will cater to your individual needs, making custom-home building affordable and rewarding. Custom home builders are customer-oriented and can determine the true needs of their clients. This might include creating a smaller, more efficient home with cost-effective finishes.

Q: How can I get a discount from my home builder?

A: Many builders offer incentives when clients choose to purchase a mortgage with their preferred lender, such as a credit for closing costs. Some builders offer discounts when clients reach a certain threshold in upgrades. For example, if a client purchases $20,000 or more in upgrades, they may receive a discount of $5,000.

Q: Can I use my own subcontractors to save money?

A: Some home-builders give clients an allowance for select finishes. This scenario allows clients more freedom for selection, and can be financially beneficial in cost-plus contracts. However, it is important to differentiate between levels of quality with subcontractors. In large cities like Vancouver or Toronto, where there is a wide selection of subcontractors, not all will provide quality work and materials. Outstanding home builders take pride in their unique selection of subcontractors. Through years of experience, unskilled subcontractors are weeded out, leaving only the best and efficient. While selecting an independent subcontractor may save money initially, this can also be detrimental to the project.

Q: Is fixed-price or cost-plus contracting more cost-effective?

A: A fixed-price contract is most common with spec builders and especially popular with clients unfamiliar with home building. The total investment is known and can seem safer than cost-plus contracts. However, this is usually the least economical option. Fixed-price contracts incentivizes builders to reduce their costs to increase their profit, and can potentially lower the quality of workmanship and materials.

With cost-plus contracts, a rate is agreed upon at the beginning of the project, giving transparency to any options the clients choose and allowing the clients to save money where they see fit. The disadvantage to this method is the potential to overspend. If the clients aren’t keeping track of their selections, they might be surprised by the incurred costs at the end of their project. Alair Homes North Island tackles this issue by using a hybrid approach that maximizes the benefits of both methods. We meets with clients prior to the start of construction to agree upon all options and prices, and ensures that the client will not receive change order fees or unwanted surprises at the end of the project.

Q: Where can I find money-saving resources?

A: Seek out the professionals of the industry to discover the best tips for saving. Real estate agents work closely with home builders and often serve as an advocate for buyers. In addition, many home builders and contractors offer free informative material to prospective clients, including regularly updated blogs and frequently asked questions.