Every home that I have ever built, remodel that I have ever undertaken or addition that I have ever done has had a very through and detailed budget created that is very specific to exactly what it is that the client desires.  The only limits as to what you may want in your home are dictated only by your own personal taste and budget.  There are no, nor will there ever be, any “pre-selected” items for you to choose from.  I will provide you advice and help you in making selections, but the decisions are yours.

Budgets for new home construction, on average, are approximately four pages long and are created on an Excel spreadsheet.  The more accurate and detailed the budget is, the less likely the chance of going “over budget” and the happier your lender is going to be, as well as yourself.  Detail entails everything from the big numbers, such as the cost of a lumber package, down to the little numbers, such as how many door bumpers will be in the house and how much will they cost.  Everything is line-itemed and it will be possible to project to the dollar what it will cost to build your house as well as tell to the penny what has been spent on your house.

Additionally, your budget will have been originally created with a specific account that will grow and shrink throughout the construction process.  We will always be able to track additional monies that you may have to spend without causing you to exceed your budget.
 

There are various levels of involvement that can we can discuss prior to the commencement of construction of your home as to what the “builders fee” will be.  Obviously, the more involved that the builder is and the less involved that the client is, the higher the fee will be to build your home.

For instance, maybe you decide that you want the builder to pull all the permits, conduct all interface with the bank, write all of the checks and do all bookkeeping, make all draw requests, use business accounts that are already set-up, build your home (and all that entails), warrant the home, collect all insurance certificates and licenses from subcontractors, collect all Waivers of Lien Release, etc…  Well, a situation such as that will cost you somewhere in the neighborhood of seventeen to twenty percent of the cost of construction of your home, excluding the land, as the builders fee.

The opposite end of the spectrum may be that you pull your own permits as a homeowner-builder, you do all of your own bookkeeping, you select all of the subcontractors (or want minimal help in selecting them), the builder does not warrant any of the work and the builder is acting purely in the capacity of a project manager or a consultant.  In other words, you are using the builder as a person to coach and guide you through the construction process of your own home because you want to save some money and you are capable of tackling the project yourself.  Well, obviously, this will cost significantly less than if the builder were doing everything.  In fact, it will cost a predetermined average number of hours per week at a predetermined hourly rate.

On average, in the Greater Albuquerque Metropolitan Area, you should expect the builders fee for your new home to run somewhere between ten to twelve percent of the cost of construction, excluding the land cost.  In the Santa Fe area, you should expect the builders fee for your new home to run somewhere between fifteen to seventeen percent of the cost of construction, excluding the land cost.

As previously mentioned, the budgeting process is very detailed and inclusive so it is very easy to see exactly what things cost.  Additionally, no matter what the arrangement is as to the level of service that you desire in the construction of your home, you will always receive copies of all invoices, and bank statements and Quicken accounts in the event that is required.  You will know exactly how much your home costs and how much the builder earns.

All negotiated discounts, be they with vendors, suppliers or subcontractors, are passed on directly to you, the client.  I, the builder, earn my money by building your home, to the level of service that we agree upon.  I do not earn my money by marking-up plumbing fixtures, flooring material, windows, or anything else.  I get paid to build your home, and I get paid to save you money.

Bottom line, “what it will cost to build your house” will be greatly influenced by what exactly you want in your home, how you want your home to look and they types of finishes that you desire to have.  "What you will pay the builder" to build your house will be agreed upon between you and the builder and be something that you are both comfortable with and believe is fair, and yes, you should know exactly what the builder is earning and what is being done to earn that money.