Pricing
Cost-Plus vs. Fixed-Price: How We Price Custom Homes
JM Homes offers both cost-plus and fixed-price contracts. Here’s how each works, and why most bank loans call for a fixed price.
By JM Homes4 min read
When you compare builders you’ll usually see two ways to price a custom home: a fixed price, or cost-plus. We offer both, and here’s how to decide which fits you.
How a fixed-price contract works
With a fixed-price contract, we agree on the total cost of your home before construction starts. Most bank construction loans require a fixed-price contract, because your lender needs to know the full cost up front. If you’re financing your build, this is usually where we start.
How cost-plus works
Our fee is an agreed-upon percentage of the bills each month, not a flat number padded to cover unknowns. You receive a copy of every invoice, every month, so you always know exactly where your money is going.
When cost-plus makes sense
- No hidden costs when you make changes or upgrades along the way.
- You pay for what’s actually built, not a builder’s risk cushion.
- Full transparency: every invoice is shared with you.
Not sure which is right for you? Talk with your lender first, then with us. We’ll help you match the contract to your financing.
What about price per square foot?
It’s hard to quote a single number. Material and labor costs have fluctuated, and your style and finish choices have a big impact. We’re confident we can deliver a quality home starting as low as $200 per square foot, and we’ll estimate your plan and materials before we start.
