Did you know the average building company lasts only 3.6 years? Over the 16 years we’ve been in business, we’ve seen many building companies go under, leaving their clients with half-finished homes and tens of thousands of dollars lost. If you’re planning to build your dream home, this is a reality you need to consider.
Building a home is one of the biggest investments most families make. The excitement and nervousness that come with it are completely normal, but when it comes to quoting and pricing, you need to approach things carefully. Rushing to select the cheapest price could lead to poor workmanship, delays, or worse—a home that never gets finished.
One of the biggest traps to avoid during the quoting stage is falling for the allure of a free quote. In this post, we’ll explore why free quotes often come with hidden costs, and a lot of headaches.
Understanding the Difference: Estimates vs. Quotes
The first step to navigating the quoting process is understanding the difference between an estimate and a quote. Many people confuse the two, and it doesn’t help that builders often use the terms interchangeably.
An estimate is a rough ballpark figure of how much it might cost to build your home based on simple criteria. It’s a starting point and helps you determine whether your project is within your budget. Since estimates don’t require exact costs for materials, fittings, or labor, they are usually free. However, because they lack detailed planning, they become irrelevant as your project progresses.
A quote, on the other hand, is much more detailed. A comprehensive quote takes a builder more than 50 hours to complete. It involves gathering accurate prices from suppliers and subcontractors and preparing a full job schedule. This process requires professional estimators and often results in a document 25 to 40 pages long, detailing materials, labor, and the timeline for your project.
The Hidden Costs of Free Quotes
When you see a builder offering a free detailed quote, be cautious. Producing an accurate and comprehensive quote is time-consuming and expensive—builders who do it for free are likely cutting corners. Even if they don’t charge you upfront, they may include the cost of their time in other areas of your build, leading to higher expenses down the line.
Professional builders know that their time and expertise are valuable. When they charge for a detailed quote, they ensure the job is planned accurately from the start, reducing the risk of unexpected costs later on. Builders who offer free quotes may not be as thorough, resulting in missed details, rushed planning, and increased costs throughout the build.
Why You Should Always Pay for a Quote
If you’re working with a professional builder on your custom home, paying for a quote is a good sign that the builder values their own time and yours. It shows they are serious about providing you with accurate information upfront, rather than surprising you with hidden fees later.
One way to tell the difference between a rough estimate and a detailed quote is by the length and content of the document. An estimate is usually a simple, one-page sheet with minimal information. A quote, however, should be far more comprehensive, covering every aspect of the build—including working drawings, material lists, labor costs, and a job schedule.
Be Cautious of Builders Offering Free Quotes
When a builder offers a free quote, it may be a sign they are desperate for work. Builders who aren’t in demand are more likely to rush through the quoting process, missing key details or failing to account for potential issues. Once you’ve signed the contract, these oversights can quickly add up, costing you more in the long run.
A professional builder, on the other hand, will include all their costs upfront—such as for drawings, soil tests, and other administrative services. This transparency means you’re less likely to encounter inflated costs or unexpected fees down the road.
Building your dream home is a complex and challenging task. Choosing the right builder is essential to avoid costly mistakes and ensure your project runs smoothly. Builders offering free quotes often make up for it by charging more elsewhere, so always be wary. Instead, look for builders who value their work and time enough to charge for their services from the beginning.
Don’t rush this critical decision—take your time to research and choose a professional builder who will complete your home on time, on budget, and to a high standard.
You can start with this free guide: 7 Things You Must Know Before Designing a New Home
Grab it now and sidestep the traps so many homeowners fall into.
