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Lump Sum Pricing. What is it?

At Reel Homes, we typically develop our contracts using “Lump Sum” pricing. This means that we assume responsibility for all site work along with the construction of your home. Although we will adjust our pricing model to satisfy individual needs, 9 out of 10 clients choose our Lump Sum pricing option.

The simple reason is that with Lump Sum pricing, there are no headaches for you, our customer.

Lump Sum Pricing makes Reel Homes different.

We believe that the construction pricing of your new home should include the cost of EVERYTHING associated with building your new home. In other words, we include the costs involved in what is typically called “site work.” We estimate the cost of the site work and add it to the price of your home to provide you with a Lump Sum price. We quote you a solid number that will not change.

From engineering and permitting to all required inspections, we like to be in control of the process from start to finish to ensure things get done efficiently. Think of it like making a trip to the grocery store and buying a box of cereal. You see the price of the cereal on the shelf and when you get to the cash register, it scans at the advertised price. It is the safe way to make purchases. That’s why 9 out of 10 clients go this route.

Lump Sum pricing makes financing easier.

Lump Sum pricing also helps in your dealings with banks and financial institutions. It makes sense that a loan would be easier to secure if a price was guaranteed as opposed to being estimated. Banks love to see this type of contract because they know their risk is decreased. You, the homeowner, are assured of what you are going to be paying at the end for your monthly payments.

Doing the contract this way, as opposed to having us just manage the site work, gives you the best of both worlds; it gives you the ability to build a custom home while giving you the peace of mind associated with buying a resale.

Why isn’t Reel Homes’ pricing online?

The reason we do not list our pricing (or site work pricing) online is simple. There are too many variables involved to provide accurate pricing online. For example:

  • One client may ask us to tear down an old home and build a new one on a ¼ acre lot.
  • Another client may have an undeveloped 10 acre property with well water and a septic system.

With the two scenarios above, the costs involved in building on each property would be far different. Based on the fact that every lot and project is completely unique, we cannot put accurate pricing online. We have had numerous clients come back to Reel Homes after going with other “on your lot builders,” because they received information from the other builder that was simply not true. Costs can vary so much that it is impossible for any builder to give you an “estimate” without seeing the lot and conducting thorough research.

Prior to providing pricing, we will do a site visit and meet with you to discuss your desires and wishes. Once we’ve had a chance to speak with you, we will provide you with information regarding the cost as a whole.

Why do we offer this option? To make your life easier.

Some people ask us why we offer this. If other builders don’t do it, why do you? Why would any business take on unnecessary risk? What is the catch? The answer to all of these questions is usually the same. We want our customers to feel comfortable and not have to go through the construction process worrying about overages, constantly thinking that a phone call might come each day requiring an extra $5,000 to proceed with construction.

In a perfect world these things would never happen, but construction and home building is not a perfect world. We do take on risks and additional expenses at times but keep our company’s overhead low and build homes very efficiently to combat this. You are dealing with the owners of the company from the start to the day you move into your new home. Our customers are our number one priority.

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