"Why are you charging me for a quote when another builder gave me one for free?"

We hear this question a lot, and honestly, it’s a great one. But here’s the thing: not all home price quotes are created equal.

You might assume the free quote you got is within 5% of what it’ll actually cost to build your custom home. But often, that number is based on averages: an average-sized home, with cookie-cutter finishes, on a developed lot. If your dream home doesn’t fit into those "average" boxes—and most custom homes don’t—then that free quote isn’t as helpful as it seems.

Here’s why:

Builders Use Three Types of Pricing:

There are really three different ways builders calculate costs at different stages of your project:

1. The Square-Foot Ballpark

This is what you’ll typically get from a free quote. It’s a rough number based on the builder’s recent projects and what they cost per square foot. If your custom home matches their previous work—say, it’s the same size, style, and complexity—this number might be close.
But custom homes rarely fit a standard mold. A square-foot ballpark can easily be off by 25%. It’s a starting point, nothing more.

2. The Preliminary Budget

Once you have a lot and a blueprint, a builder can dig a little deeper. They’ll visit your site, assess things like utility routes and excavation needs, and do a "take-off"—a detailed count of materials and components in your design.

This step gives you a better sense of cost, usually within 10%. But it’s still based on historical pricing, which doesn’t always reflect today’s market conditions. However, if your project goals include sustainability, net-zero energy, or a golf simulator; these costs can be anticipated at this stage.

There is quite a bit of time, experience, and due diligence put into a preliminary budget. In my 11 years as a custom home builder, I've never heard of a builder doing this for free.  This is also why you will wind up frustrated if you try to get three quotes on your home plans--you might get three ballparks, or three builders who respectfully decline to participate--they value accuracy and honesty too much!

3. The Firm Price

This is where the real work happens. A builder collects proposals from suppliers, trade partners, and designers; accounts for every detail, plus a contingency to cover surprises. The top quality home builders begin by writing scopes of work and specifications for each trade partner, besides assembling all of your choices so each of the proposals is as accurate as possible. It’s a meticulous process, but it gives you a reliable number you can take to the bank.

Why Professional Builders Do Things Differently

Here’s the honest truth: custom homes require custom pricing. A detailed, accurate quote isn’t just a number custom home builders pull out of thin air. It’s the result of understanding your site, your needs, and your design, and then working through the specifics with trade partners, designers, and suppliers.

This is why they charge for quotes—they’re not guesses; they’re investments in your dream home. Such an estimating process ensures your budget reflects reality, so you won’t face surprise costs halfway through construction or be forced to make rushed decisions.

Is A Free Quote Worth The Risk?

Sure, it’s tempting to go with a free quote on your new home. But if it’s wildly inaccurate, what are you really saving? An informed, careful approach to pricing your home may seem like a waste of time, but it delivers immense value in the long run: certainty, confidence, and a home that lives up to your expectations.

An Honest Quote For Your Michigan Custom Home 

At R-Value Homes, we believe your custom home deserves a custom price—one that’s honest, accurate, and built with your unique vision in mind. To learn more, download our Custom Home Guide.