WHY YOU SHOULD ABIDE FROM BUILDER ALLOWANCE AT ALL CHARGES

Charlotte McCourt, 11, could teach new home builders how to use allowance pricing. Charlotte McCourt, a New Jersey Girl Scout is serious about honesty, particularly when it comes to customer service.

She wrote in a letter, “I would love to tell you about cookies themselves, for some descriptions, I’m afraid use false advertising.” . . “I love being open with my clients.” Charlotte rated each cookie from 1-10.

She said, “Savannah Smiles taste like sweet lemon wedges. They have the perfect balance of sweet and tart.” This cookie is a 7 because of its delicious taste.” She ended her remarks with the Toffeetastic. It received a 1 because it was “a bleak, flavorless and gluten-free wasteland”. It’s as tasteless as dirt.

Her candid pitch for selling cookies went viral and she was rewarded with record-breaking sales. Truth in advertising is the key to Charlotte’s selling success.


HONESTY Is THE BEST BUSINESS POLICY

You’ve probably seen ads promising great deals only to find out that the price or product are not what they promised. This is especially true for simple items like cookies. Imagine this happening with something so important as your dream home.

Many new home builders will offer low prices to get your business. These attractive prices often include home allowances.


WHAT IS A BUILDER ALLOWANCE?

An allowance is a list that your builder provides you with to help you purchase goods or services for your home. Common allowances include:

  • Cabinets
  • Countertops
  • Flooring
  • Lighting
  • Plumbing
  • Kitchen Appliances

To streamline the bidding process and expedite the building process, home builders will include allowance pricing. Buyers should be aware that a low-priced home can leave you with a false starting price and missing crucial details.


ALLOWANCE PRICING IS NOT COMPLETE

Allowance-based builders will ask you what you want in your new home. Important to remember that the value you are given is an estimate and not a number that you can trust. Problem is that builders often set budgets that are so low it becomes almost impossible to stick to them.

As an example, consider an appliance allowance. You are given a $1500 allowance by your builder for kitchen appliances. You go to the store to buy your appliances. However, the allowance the builder has given you is not enough to purchase the better products that you desire for your new home. What if the price of the product you desire is more than what the builder has given you?

There are two options: You can choose to settle for less-expensive appliances in order to keep within your budget. You can also spend more money to get the better appliances of higher quality.

Imagine this scenario: You have multiple allowances for cabinets lighting, flooring and plumbing fixtures. It is easy to see how unexpected costs can add up. You may find that the low price you paid for your new home is not the final price.

Most of the time, by the time that you realize that the allowances don’t cover your choices, the financing has already been approved. You will need to save the money.


HOW DO YOU HELP FRAUDULENT ALLOWANCE PRICING?

Ask the builder before you sign any contracts. If they answer yes, continue to search until you get an accurate, complete price. Typically, a budget or allowance for site development is used to prepare the lot for the home. The exact cost of the work cannot be known until it is finished.

Many people wonder “What is the difference between home prices with allowance pricing and those that don’t include allowance pricing?”

It is easy to answer: Builder allowances should not be used as a sales tool. Allowance pricing can cause confusion and could lead to you spending more than your budget. Don’t accept allowances as a standard. There is a better alternative.


UPFRONT PRICE: HOW WE DO IT

The pricing process is simple: We meet with you to help you determine what you need in your home. We will honor the final price we determine based on your list.


BENEFITS FROM GETTING AN UPFRONT PRICE

  • No hidden fees, exact pricing on your new home.
    • You can compare other prices and budget for a real price.
  • Learn about the high-quality materials that are used in your home.
    • We are different from our competitors because of the Fine Line Homes 5 star Product Program.

Fine Line Homes was an excellent choice for building a home. Fine Line Homes was very responsive to all our questions and any changes we made along the way. Fine Line was able to deliver the quoted price despite being warned by others. It was easy to choose the finishes you wanted from their showroom. It is affordable for young couples to build their home. Nicole and Michael Baker

VIEW OUR VIDEO: DANGERS OF ALLOWANCE PRICES

Fine Line Homes has friendly housing consultants who can answer any questions you may have about home construction.