How to read a builder’s estimate, line by line

Allowances, exclusions, contingency and markup: what each line means and which ones decide the final invoice.

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Two estimates for the same house can be $80,000 apart and both be honest. The difference is usually in four places, and once you know where to look you can compare any two builders in an evening.

Allowances

An allowance is a placeholder for something you have not chosen yet. A $6,000 tile allowance and a $14,000 tile allowance make the same house look very different on paper. Ask for every allowance in dollars and compare them side by side.

Exclusions

Read what is not included before what is. Driveways, landscaping, appliances and utility fees are the usual suspects. If one estimate includes them and the other does not, the cheaper one is not cheaper.

Contingency and markup

We show both. Contingency covers what nobody can see before work starts, and unused contingency comes back to you. Markup is our overhead and profit, a fixed percentage written on the estimate, so you never wonder where it is hiding.

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What a custom home really costs in Knoxville

Per-square-foot numbers from our last 31 custom homes, what moves them, and the three line items most first estimates leave out.

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Building on a sloped lot in East Tennessee

A walkout basement can add a floor for less than an addition. Here is what the slope, the soil and the drive will cost you.

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Addition framing with a window opening onto the trees

Add on or move? The math we walk owners through

Agent commissions, closing costs and moving add up to about 10% of a house. Here is how we compare that with an addition.

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