“The base price tells you what the builder will not argue about. Everything else is a conversation.”
Every production builder publishes a base price and a list of included features. The list is accurate. It is also written to be read quickly, and the interesting information is in what it does not mention.
Read the list for absences
- Does the included flooring cover the whole first floor, or the entry and kitchen only?
- Are the windows on the rear elevation the same as the front?
- Is the basement egress window included, or is the finished basement it enables an upgrade twice over?
- Does the site work allowance assume a flat lot and ordinary soil?
- Who pays for the driveway beyond a set length?
None of these are tricks. A builder has to draw a line somewhere in order to publish a price at all. The mistake buyers make is treating the line as the finished house.
Allowances are budgets, not selections
An allowance is the builder's estimate of what a category will cost. If the lighting allowance is a number and you choose fixtures above it, the difference appears as a change order. Allowances for lighting, plumbing fixtures, and landscaping are the three that most often run over, because they are the three where buyers are choosing from a showroom rather than a spec sheet.
A change order is not a penalty. It is a decision made after the loan amount was set, which is the only reason it hurts.
Production, semi custom, custom
A production builder repeats a plan and buys materials at volume, which is why the price holds. A semi custom builder repeats a plan and will move a wall. A custom builder starts from your drawings and prices your specific decisions. All three build good houses in Pennsylvania. They just place the cost certainty in different places: the production builder gives you a firm number and a narrow menu, the custom builder gives you a wide menu and a number that firms up later.
Questions that separate builders quickly
- How many homes did you close in this region last year, and how many are under construction now?
- What is your typical timeline from contract to settlement, and what has pushed it recently?
- Which trades are employees and which are subcontracted?
- Can I see a home you finished two years ago, not just a model?
- What does your warranty actually cover in year one and year ten?
What to take from this
- Read the included features list for what is missing, not what is listed.
- Track lighting, plumbing, and landscaping allowances closely. They run over most often.
- Ask to see a two year old house, not a model home.
- Production and custom builds are financed differently, so decide the builder type before you shop loans.
Where to go next
The Journal is written for people thinking about homes, not just financing them. Articles are educational and reflect general observation about Pennsylvania housing, architecture, and daily life. Nothing here is an offer to lend, a commitment to a rate, or an appraisal of any particular property. Corie Adams, NMLS #1875205. Network Funding, LP, NMLS #2297. Equal Housing Opportunity.
