Building a Custom Home-question about upgrade costs

[gurt 748]

So my wife and I are considering building a house on her family's land south of Austin.  We went to a custom home builder and got some prices for fully built out, but it was with completely basic options.  Like stained concrete for the floors, basic  It came out to about 300k.  My question then is, how much should we expect to pay on upgrades?  We aren't needing top of the line everything, but say nicer faux wood floors, upgraded bathrooms and kitchen, etc.  It feels like we'd get to a 100k extra in a hurry.  

Just looking for general ball park costs before making any decisions.

[Dr Fear 1268]

So my wife and I are considering building a house on her family's land south of Austin.  We went to a custom home builder and got some prices for fully built out, but it was with completely basic options.  Like stained concrete for the floors, basic  It came out to about 300k.  My question then is, how much should we expect to pay on upgrades?  We aren't needing top of the line everything, but say nicer faux wood floors, upgraded bathrooms and kitchen, etc.  It feels like we'd get to a 100k extra in a hurry.  
Just looking for general ball park costs before making any decisions.

How many sq ft we talking about here?

[gurt 748]

1800-2000

[Gil Bang 25944]

Upgrades are where the builder really makes money.  

[Chewbacca 7773]

Upgrades are where the builder really makes money.  

Not if it's a truly custom home. If it's a spec house you are updating, then yes.

[Gil Bang 25944]

6 minutes ago, Chewbacca said:

22 minutes ago, Gil Bang said:

Upgrades are where the builder really makes money.  

Not if it's a truly custom home. If it's a spec house you are updating, then yes.

Fair enough.  My experience was construction financing for tract builders.  The numbers for a given house were usually meh for the base house, and really great when upgrades were factored in.

[NeverMarryAStripper 21898]

Based on my experience with custom home contracts they usually have $ amount allowances in them for things like flooring, plumbing fixtures, flat work etc.  You need to make sure those allowances are sufficient for your tastes when signing the contract or you can expect overages.

[UTPhil2006 3807]

17 minutes ago, NeverMarryAStripper said:

Based on my experience with custom home contracts they usually have $ amount allowances in them for things like flooring, plumbing fixtures, flat work etc.  You need to make sure those allowances are sufficient for your tastes when signing the contract or you can expect overages.

This 

[gurt 748]

17 minutes ago, NeverMarryAStripper said:

Based on my experience with custom home contracts they usually have $ amount allowances in them for things like flooring, plumbing fixtures, flat work etc.  You need to make sure those allowances are sufficient for your tastes when signing the contract or you can expect overages.

That's good to know.  How does that change for instances where we are selecting from certain models, not truly customizing from the ground up?

[Delta Charlie 150]

4 hours ago, NeverMarryAStripper said:

Based on my experience with custom home contracts they usually have $ amount allowances in them for things like flooring, plumbing fixtures, flat work etc.  You need to make sure those allowances are sufficient for your tastes when signing the contract or you can expect overages.

No better advice has been given on this site. Look closely at each category's allowances and see if some are possibly inflated. You might be able to "save" in one category and transfer that "savings" into another category and spend it with an upgrade. 

[Brew 3049]

7 hours ago, gurt said:

That's good to know.  How does that change for instances where we are selecting from certain models, not truly customizing from the ground up?

They will have allowances built into the contract for each of the variables and you just have to keep up with what you are going over on lighting, flooring, etc. At $150 a foot in today’s market you are looking at very basic levels in lighting, floors, closets, counters, etc. I would be a little worried and go ahead and get that detailed breakdown as well as the basic cabinet layouts, shower layouts, etc and see how workable it is and where you need to spend extra. Then don’t get stupid or be prepared to pay for it. We just did a pool and are working on a pool house and master bed/bath addition. My wife went 40% over on the pool without changing the size and she’s blowing the other two by about the same because apparently when she looks at tile, counters, lights, etc she automatically picks the most expensive f-ing option available. I think we’re at $200 a foot just on the pool house. 

[ROFL BOX 6649]

All I can really suggest is to definitely spend for things you won't do yourself, like countertops or the roof... things that are expected to last 15+ years & are well out of the scope for the average homeowner to undertake on their own.

Swap out a cheap light fixture 2 or 3 years later? Easy. Don't spend on that now.

Larger back patio from a 10×10 postage stamp to a covered 10×20? Do that now.

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[deadshank 24652]

A true custom house built by a “custom” builder entails your bringing your plans drawn by your architect (inclusive of pre-set allowance numbers) to builders and have the builders bid the work.  
 

As you develop a schedule of values, you will have hard bid items (foundation, roof, rough plumbing, HVAC, etc.) and then the allowances for your “taste and preference”  items.  You need to control what you spend on these.  Further, the builder can’t guess and place a dollar value on your tastes.  You need to put forth the effort here and inform yourself.  Do your homework. 
 

If you don’t want to pay $10K for a $5K refrigerator or $90K for a $70K foundation then you need to consider a cost plus contract where you see each and every invoice as presented from supplier, subcontractor, professional service provider and vendor to builder and then you will know exactly what you are  paying.  The builder can’t shop bids to get the HVAC done for $8K less and stick it in his own pocket.  You get to monitor and enjoy that savings. Transparency keeps errbody honest.  
 

SOV line item values can be transferred so over budgeted values can be applied to under budgeted items.  
 

Don’t get in bed with a “program” builder.  Those meatheads are all business and contracts and typically aren’t good builders. They fit you into box.   

[ROFL BOX 6649]

Also, many customers get the idea that they should be able to squeeze a rock for water & get the absolute best "value" (whatever that is) from someone that is "affordable" (again, whatever that means).

The word "affordable" really just means "I have no idea what this process should actually cost".  The hard part as a contractor is when customers have no idea on that & the contractor is wobbling back & forth between "how to price 'affordably' (customer expectations) vs. how to actually make a living".

[troph 24783]

depends if it's fixed price or cost plus. cost plus *should* be pretty transparent.  actual cost plus a percentage.  trick is actual cost.  are you seeing vendor invoices?  what about for labor? or is the "cost" a line item on the builder's invoice?  if so, could be charged coming and going (added cost plus the percentage on top).  fixed price, well you agree or don't to their price.  most fixed price contracts have cost escalation clauses for runaway materials costs like we've experienced the last year so you'd pay more making if really a fixed-variable priced contract.  but either way, in that fixed price deal, the contractor has a cushion for price volatility and profit so you would be paying the builder a premium.   also, on the cost plus model, the plus portion really is intended to be pure profit - which shouldn't be an issue and when it is with owners that's when the relationship deteriorates fast.  the build cost should have the pass throughs for site management, admin, overhead, etc.

the shorter answer is depends on the contract and what the upgrade costs to begin with.  but yes, it can mushroom quickly. 

Edited October 1, 2021 by troph

[Parliament 14255]

If you hafta ask, you can't afford it.