Posted: Fri, 25 Sep 2009 10:42 AM - 9,303 Readers

By: PR.com

When a client chooses a custom home builder (http://www.sterlinghome.com ) who operates under the cost plus model, they have the perception that their dream home will cost less since they are receiving “builder cost”. However, building hard costs constantly fluctuate based on supply and demand. While building a home, one can typically expect the price of concrete, lumber or sheetrock to increase. The fact is, this increase must be absorbed by someone and, under the cost plus model, it would be the client. When there is no fixed price quoted on labor and material, the builder has less incentive to flex his purchasing power and protect the client. The bottom line is, the more expensive the home, the more profit for the builder.

By contrast, in a fixed price scenario, all the specifications and price of the custom home are worked out in advance. As a result, the buyer walks out with a comprehensive understanding of their budget. Of course, delivering a fixed price does require more time up front to identify the materials and selections. The biggest drawback has always been the inordinate amount of time it took to obtain bids from suppliers and subcontractors.

Sterling Custom Homes has solved this problem by developing a proprietary Specifications and Pricing module that allows them to front-load material and labor costs. This enables them to produce a fixed price in a matter of a days, rather than weeks or months.

Once a price agreement is met, the builder assumes all the risk of the fluctuating material costs. Thus, he is quite willing to flex his purchasing power and hold the suppliers and subcontractors to their bids. While fixed price results in the uncertainty of the builder’s profit, it protects the client form the instability of material and labor costs.

For the last 20 years, Sterling Custom Homes has extended the advantage of fixed cost building (http://www.sterlinghome.com/specifications ) to the client which has proven to be the most efficient and positive experience for them.

Sterling Custom Homes (http://www.facebook.com/sterlingcustomhomes)builds quality custom homes in many of Austin's premier custom home communities, private gated communities, and resort golf communities. From Lakeway, all up and down Lake Travis, and into Westlake, Sterling is known as one of Austin's premier custom home builders, with a reputation for exceptional quality, integrity and service.

*  Story Contributed by: PR.com