Once you know how much you are comfortable investing in a new home, the next concern is sticking to the budget. Depending on who you choose as a builder, doing so can be a lot more difficult than you’d think.

The two types of building contracts

When it comes to putting a home budget together, you have to consider the type of builder that you’re hiring. There are two types of builders: cost-plus and fixed price.

A cost-plus builder charges you the cost of the materials and labor, plus a fee. The problem with a cost-plus builder is that the price isn’t set in stone. If more materials are needed or something gets messed up, that extra cost is added to the project.

Historically, No Doubt Homes, has been a fixed price builder where we agree on a price with you once the design is approved, and that price doesn’t change, period. Any extra cost would only be associated with change orders or allowance-based upgrades. We eat any extra cost that is not an approved change order.

Unprecedented Times Requires Unprecedented Action

Over the last couple of years, the housing industry has changed at rates faster than anyone could have imagined. The demand, material supply, and labor variables have made the budgeting of building a home much more complex. Large swings have occurred (up and down) that make the budgeting process difficult. Because of this, No Doubt Systems has gravitated towards more of a cost-plus hybrid model. This is a pricing model that locks in a disclosed profit but has the flexibility to swing with the variables mentioned. As we build your home, you see all the costs and have input on the build schedule measuring all the variables. Every aspect of your build is 100% transparent at any time through our on-line system.

How to get the most out of your budget

Our goal in designing your home is to get the most of what you want into your budget. We help you decide how much square footage you really need and find savings to make room for more of the amenities and features that you’d like to have. While everyone naturally holds back a bit when they’re giving their budget, we encourage you to be up-front about what you want to spend. Many times, we come in under-budget with our price, leaving you room to add on the extras you’d been thinking of or to keep that extra money in your pocket.