One of Texas’ best in designing and building beautiful custom homes has taken a unique approach to a frequent problem within the home building industry.
SPICEWOOD, TEXAS, UNITED STATES, April 7, 2022 /EINPresswire.com/ — Recent data from the U.S. Census Bureau shows the cost to build a home went up by 17.5 percent year-over-year from 2020 to 2021, the largest spike in this data from year to year since 1970. That is why representatives with Riverbend Homes Group are proud to announce that the company helps owners have full control over their budget.
“One major problem in the home building industry is cost-plus contracts,” said Riverbend Homes Group Owner Ben Neely. “A cost-plus contract is where the owners and builder agree upon a percentage management fee and add that to every cost along the way.”
Neely explained that builders do this when they do not want to put in the time to accurately budget a home.
“It’s an easy way to win a job as it usually sounds like the home will cost less,” Neely pointed out before adding, “However, with cost plus contracts, the goals of the homebuilder and the homeowner are not aligned. Homeowners want everything to cost as little as possible, while the owner wants to maximize profits. Builders will probably want to use bids that are more expensive to maximize the profit they make, and owners want to keep costs predictable and affordable.”
The way Riverbend works, Neely stressed, is that the company is a flat-fee builder, with allowances.
“Our management, insurance, and profit are all lumped into the overall costs of the home and allowances are used for the finish items to help owners have full control over their budget,” said Neely.
Riverbend Homes, which has been designing and building beautiful custom homes in the Texas Hill Country, has developed a distinct approach to home building that puts its clients’ needs and desires as its top priority.
Being able to understand the homeowners’ vision and to bring it to life, according to Neely, is a big part of the Riverbend Difference.
About Riverbend Homes Group
Riverbend Homes Group is a second-generation family-owned business that has been designing and building beautiful custom homes in the Texas Hill Country since 1996.
21413 Vista Estates Drive
Spicewood, TX 78669