YOUR CONTRACT PRICE
Welcome back to our series titled: Why SunCoast? What makes us different
Today we’re going to talk about a hot topic! Your contract price!
THE HEART ATTACK
I’m sure you, just like me, have heard the horror stories of getting to the finish line only to discover you went waaaayyyy over budget. Ummm….how does that even happen without you knowing it? I’m really not sure but many have lived to tell about it.
PRO TIP: Get pre-approved from a lender prior to starting this process to make sure you can afford what you would want!
OUR PROCESS
When you reach out to Sun Coast to inquire about building a home or renovating the one you’re in, Eugene and David schedule an appointment with you at your earliest convenience.
Whether you already own your lot or have one in mind Eugene will most likely go see it prior to meeting with you so you can talk about any issues that may create extra costs for you such as extra clearing and fill or whether or not you may need a special septic system that will cost you more than you thought. Who wants to give up their dream kitchen for an overpriced septic system! Ugghhh….
If you are looking for lots he may be able to give you some direction. He is a licensed real estate broker in charge so he can search the MLS for you and forward anything he thinks you may have an interest in. He can also help you purchase it as well as help you sell your existing house.
If you have a renovation they would meet you at your home so you can show them what you would like to do. Eugene will then ask any questions, take measurements and notes, and then spend time in his office figuring a price for you. Eugene and David see all sorts of things most of us miss so having them spend some time looking and asking questions can be priceless.
HOUSE PLANS
Then you will move on to the fun part! If you have an idea of what you would like but you don’t have a house plan, no problem! Eugene is one of very few builders who draws his own plans which is great for you and happens to be something he really enjoys! Ask about our policy regarding plans!
Once your house plan and specs are agreed upon, Eugene can then calculate your contract price. If Eugene carries the construction loan, the cost of your lot will be figured into your contract price. He will go over all that is entailed in your contract so you will have a chance to ask any questions. Once you are confident you’d like to move forward, you will have a dotted line for everyone involved to sign, and then it’s time to arrange the financing.
PRO TIP: Always get a construction-perm loan in your name! Why? Because you have 1 closing at the beginning of the project. That means, God-forbid, you could lose your job in the midst of this process and still have a new home to move into! It is far safer for you to carry that loan.
Once you’ve found the land or lot you’d like to build on and your offer is accepted you will have a due diligence period where you can get any questions answered such as getting a septic permit if needed, check to see if it is free of liens, if the person listing the property has the right to sell it, if there are any encroachments, easement issues and the like. Make sure you use your time wisely so you don’t lose your earnest money!
ITEMS THAT INFLUENCE CHANGES IN YOUR CONTRACT PRICE
Eugene seems to be different in this area. He tries to look ahead to see if there are any changes happening within the building economy in order to prevent surprises before he determines your final contract price. Of course, no one has a crystal ball but here’s a big difference...He does whatever he can to stick to the contract price even if building material prices go up. Yes, we have an escalation clause in our contract like most builders but the idea is to try to head this off at the pass. The only time he would not absorb the extra unforeseen costs is if there was such a major change he simply could not afford to do so. At that time, he would sit down with you and explain the situation so you all can come up with a plan.
The big question Eugene and David ask themselves when meeting with potential clients is, “When things come up, can we work out a solution with this person?” During tumultuous times like this, that is a very important question for all involved.
The only thing that will most definitely make your contract price move at all are, you guessed it:
CHANGE ORDERS
While change orders can add up quickly, the saving grace for you is you pay as you go. No surprises at the end. No horror stories to tell your friends. No nightmares. While some would prefer to pay at the end, there’s an issue with that. If you add all of these things at the end and then get to the closing table only to find out the bank won’t approve you for the extra amount, or you can’t afford to pay the extra then what? Well, let’s not even go there. That’s a heart attack waiting to happen.
THE BIG IDEA
All you need to know is Eugene is going to do whatever he can to keep your costs down.