What is a Base Price?
A base price is a builder’s fixed list of included features in a home that are considered standard, it is the cost of the property before any upgrades, additions, or other adjustments are added to the floorplan, or any costs associated with the homesite itself. An example of included features for Comerio Homes would be 9’ basement, 3rd car garage, tile floor in master bathroom, etc.
Builders use base pricing so there is a standard purchase price for each floor plan they build. Every builder will vary on what they include in their homes base price. Buyers and agents are always comparing builders’ base prices to see how they stack up per sqft. This is not always the best way to compare builders. Every builder’s home is different, including, but not limited to, their floor plans, elevations, included features, and costs associated to build each floor plan.
For example, Comerio Homes includes granite as an included feature. Other builders might consider this an upgrade. Given the different standards, they will have a lower base price since they have not included this feature. It is important to understand the included features when comparing base prices.
WHY HOME BUILDERS USE BASE PRICING.
A builder can price out a home to a buyer anywhere in their market using a base price and add in the homesite and upgrades to get a final sales price quickly. Using a base price is the best way to keep consistent pricing for home builders who build the same plan regularly.
WHAT IS INCLUDED IN BASE PRICING?
Base Price = a fixed list of included features in a home that are considered standard. Refer to the included features handout which is specific per floor plan.
WHAT IS NOT INCLUDED IN THE BASE PRICE?
The following items are not included in the base price.
- Homesite Costs
- Buyer Upgrades
- Any additional allowance over what is included in the base price
DOES BASE PRICING CHANGE? IF SO, HOW OFTEN?
As pricing increases on labor and materials, builders will adjust their base prices to reflect this throughout the year. Base pricing could change monthly depending on the changes in labor & material costs. In a stable market the base price could change annually or per quarter.
What is a CUP (Community Upgrade Package)?
A CUP (Community Upgrade Package) is a tool that builders use to track and add costs that need to be included in a new home build that are required by a certain community or city code that is not normally in the builder’s base price.
The builder will have a CUP for each community as most builders build in several communities and all communities are different. Examples are upgraded roofs, sprinkler systems in landscaping or stucco on all sides of the home to name a few.
Not all cities in the same MSA adopt the same building codes. An example of city code may be a requirement to include certain underground plumbing in one city that the city next door does not require. Since there are so many communities and cities it’s hard to just have a fixed price for every floor plan that includes or removes all the things that may need to be included, so the builder keeps the base price consistent and then using the CUP to price in all the other random things that could be required over the base price.
What are Site Costs?
Site costs are construction cost items that have to do with the actual homesite cost such as excavation, backfill, trenching, piering, rock hammering to excavate or trench, clearing trees, or hauling dirt or debris. No one really knows what will be under the soil until the excavation starts and the basement is dug.
Each floor plan has a site cost protection allowance built into the base price. This is based on the series of each floor plan. (Refer to new home sales contract or included features for that floor plan for allowance amount).
Depending on the floor plan size or the homesite / community we typically add an allowance to the pricing summary which is in addition to what is already included in the base price to have funds available in the event there are more site costs than expected. This is not unique to Comerio Homes and is a normal thing to expect when building a home in the Midwest when basements are involved.
What is a Spec Home?
A spec home or speculative home is a home that a builder has started to build without a current buyer. These are also sometimes called inventory homes. They can be purchased and sometimes customized at anytime during the construction process.
What is a Build Job?
A build job is a new home that prior to construction a buyer has contracted with the builder to build a specific home for the buyer.
Can we make selections if the home is already under construction?
In most cases the answer is yes. However, that all depends on how far along the home is. To be sure please reach out to verify.
Does Comerio Homes have their own Design Center?
Yes, Comerio Homes has a state-of-the-art design center where buyers will make all their new home design selections.
Is the Design Center open to the public?
The design center is by appointment only. Please check out our events to see when the next open house is scheduled. You can always schedule a private tour or meeting at any time.