"what would be a suitable allowance for flooring, kitchen appliances, cabinetry and bathrooms?"

Nothing, select it all now, before you build.

ditto and if you do use one or two allowances, they should only be for materials; installation should be in the base contract price.

Will it be design-build or will you have an architect?

If you're building a custom home begin with finding an architect, not a draftsman. Start now by making a list of everything you need and everything you want. Order the wants in terms of priority. Take this to the architect, they'll give you some designs (this will be a back and forth process). A good architect will hear your budget and stay within. Pick all the finishes before you even begin building so there aren't any surprises.

Learn where to splurge and where to save. Things that can easily be swapped out later like light fixtures or furniture you should save on. Things that can't be easily changed like flooring or cabinets you can splurge on.

I am not familiar with Tennessee law, but you may be required to have an architect. Whether you are required or not, I would recommend having one (surprise!).

Specifications, specifications, specifications.

Allowances are often painfully understated.

If you want wood floors - that's not enough. You want "site finished, 4' white oak" Tile? an almost limitless selection from $1.99/sq foot to $100's. And installation can easily vary depending on the complexity of pattern, and type of tile.

Appliances are at least easy!

Light fixtures? plumbing fixtures? HVAC specs and performance? insulation and home sealing / house overall performance?

Roofing?

Spec it out and avoid surprises.

When we bought a custom house all the allowances were in specific categories, and the allowance was for the materials. Installation was generally part of the build unless it was an unusual product with special requirements. For example, flooring allowances were split up by square feet of carpet, hardwood and ceramic tile in various rooms, and we decided how much per square foot the allowance would be. If the actual floor covering we picked out was more expensive, then we had to pay the difference. Appliance allowances were based on the mix of appliances, and we picked a value for each appliance. If we included a $3000 refrigerator and the actual one purchased was $3500, then we paid the difference, but we also got credit for anything that was cheaper than the allowance.

The tendency most folks have is to pick relatively low values for allowances, and then be surprised when its a lot more. Lighting is probably the most variable, since there are so many lights in a house and the price for quality products can be very high. Plumbing is also difficult You really need to visit actual stores and get real prices for all of the products if you do not want any surprises. Picking a somewhat random amount will give the builder something to put in the estimate, but it is not realistic.

Also remember that some floor covering choices are hard to change once the build has begun, because the floor preparation is different. For example, installing ceramic tile on a concrete slab is different than installing high quality hardwood, since the hardwood is thicker and requires various underlayment products. The slab may be poured with a recess in rooms that have hardwood, and that can't be done after the fact.

Bruce

If this is a custom house then you set the allowances with your budget. I have no idea how much it costs to build a house where you are . Start with an architect and take it from there. That is the whole point of custom is that you drive the choices I will say where I live a pretty basic housethat size would run 800K and up with no fancy appliances just a nice basic house with hardwood and tile in the bathrooms . Honestly a bathroom can cost anywhere from 10K to the moon all the choices you make will affect the budget so get an architect and a KD and an interior designer .

We are spec’ing as much ahead of time to avoid allowances. reading here, I’ve learned allowances equal failure if you just take what builder gives you

If you want to be living with a good quality finished product do the research yourself. You can ask about specific things here, in the Appliance and Kitchen forums. I'll give you a start. Miele or Bosch are highly recommended dishwashers. If you're unfamiliar with induction cooktops and combi/steam ovens check them out at an appliance showroom. Sub-Z makes a good frig.

Exactly .

Hi, Laurel,

Allowances and change orders tend to be the two most contentious parts of any custom home building project.

Allowances can be minimized by making your selections of fixtures, appliances, systems, finishes, trim, etc. and having them specified in the contract documents. Some allowances are reasonable when aspects of the project can't be estimated with a high degree of accuracy. For example, if the building site has varying depths of unsupported fill materials that have to be removed, an allowance for excavation and footings would be appropriate.

Construction of a custom home will likely include a couple of change orders. Nobody can see everything on paper. And virtual reality is still, well, virtual. Change orders can be kept to a minimum by taking the time needed to thoughtfully design a home that meets your lifestyle needs and budget. The plans should be sufficiently detailed to eliminate ambiguities.

Finally, make your selection of builder and get them involved early in the design phase. This is the best way to ensure the project will be buildable within your intended budget.

Best wishes for a successful project.

Allowances are like small Cost of the Work contracts inside a Lump Sum contract. Its important to add a section to the contract describing this work and stipulate the GC's markup and where the GC can buy the materials. I add the Owners' right to terminate the allowance and to provide the materials themselves if they are not happy with what is offered. Such provisions avoid excessive markups by the GC and the subs/suppliers and overly limited sources for the materials. Some contractors will only use their favorite subs and suppliers and allow them to add excessive markups that you will never be aware of. In a true Cost of the Work contract the GC would be required to bid the work competitively thereby providing a measure of cost control. Typically a GC with a lump sum contract provides no cost control for the buy-out of allowances. You need to prevent that one way or another.

What's your land cost? Your budget is pretty tight for land of any size and an upscale build in Franklin. It's the most expensive suburb in the state. Nothing is remotely cheap. If your budget won't buy something equivalent to your dream that is for currently for sale, it won't build it either. Building costs more than buying existing.

just....what planet are you on??

''an almost limitless selection from $1.99/sq foot to $100's.'

Sounds like you want a 100k kitchen, a 80 k master bath. Start there: ) See what I mean? And that's before you get to flooring, door handles, millwork,.....or god forbid, landscaping. At 1.5 mil you will be in for a lot of adjusting to the wish list you need to begin preparing.

If your contract includes allowances, the time to ensure they will enable you to purchase the type of products you have in mind (both source and price) is before you sign the contract, not afterwards. If you are concerned about the contractor's mark up on such items, then a simple clause indicating that any items charged against allowances will be at builder's discounted cost and invoices for all such items will be provided (that's how we do it as normal practice.)

Providing your own materials and/or selecting your own suppliers or trades for a one-off custom home adds a level of uncertainty and risk to the "adventure of building a custom home." Leave that fun for owner/builders and DIYers. Pick the right builder for your project and you'll be able to keep up with your day job because they'll be keeping up with theirs.

to robin 0919:

On planet earth, yes you can spend hundreds of dollars per square foot for tile. Here's an example of a marble and mother-of-pearl mosaic costing $149 per sf:

https://tilebar.com/aurora-marble-and-pearl-glass-tile.html?gdffi=007c33964f424d48a7ad54207c9a96af&gdfms=2356EA22A31743FE94B1B01303A6DA86&gclid=Cj0KCQiAnY_jBRDdARIsAIEqpJ2IsL0XJWN1VB5M5AXVXA40y9zX92JcNqdOa6Ks5G1kl7CK61NXLhsaAugkEALw_wcB

And here's an intricate marble mosaic mural for $296 per sf (add 15% for tumbled or polished!)

https://www.mozaico.com/products/mosaics-designs_geometric_stone-tile-mural-medallion-cala_mm030?variant=38632402057&cmp_id=1689757571&adg_id=71583354931&kwd=&device=c&gclid=Cj0KCQiAnY_jBRDdARIsAIEqpJ3gS5DFywTNKlOYJoVn-9EsWGRv6t09M-sZ4kl49_EWa7IhPEEHH7QaAn-gEALw_wcB

We were well below that in Raleigh

Lights- $8k (This is low. We did all build.com and people rave about our lights. You can spend double this easily)

Flooring $7.50 a sq foot (labor+ install). We went about $9. All wood (except a carpeted bonus room). Zero tile. Nothing is obvious in custom construction.

Plumbing - $8k (tubs, sinks, toilets, faucets) - We have Delta, Moen, Grohe, Kohler, and one Newport Brass (terrible reliability rep). You can spend double easily.

Appliances - $35k (went over despite me setting the number - maybe $38k)

Cabinets - $50k (we went way under)

Countertops - $13k (or so) We have a pretty efficient layout - fit on slabs well. Quartz mostly but not high level quartz - that can be double.

You say you want Wolf appliances. You can spend $14k on a Wolf range (48 dual fuel) or you can spend $8k on a cook top and built in oven. You can get into Sub for $6k or you can pay $16k for 30 inch columns. These are big numbers so work on this early.

Everyone on here will get you to try to be realistic on your budget. It sounds fine to me but you didn't say your land costs. You didn't say if you were planning on building with stone. Masonry adds up.

If your "acreage" is 500K, then you aren't IN Franklin. Or, it's on the wrong side of Franklin, or isn't really acreage. If your land is 1M, that's more like it. But you aren't getting a 4000 sq ft house for 500K. Not unless it's a string of mobile homes with breezeway connectors.

Your all in budget is likely to need plenty of compromises. Starting with the land. Going north of Nashville instead of south gets you more bang for your buck. Look at the Gallatin area. Bonus is water living.

You should be starting with an architect. Get input on possible land selection. Then select the land. Then design. Then the select the builder. You're starting the entire process from the wrong darn end.

A builder doesn't design a custom house. Or it isn't a custom house. It's some generic something he has built before and thinks he can make money on from selling you a repeat performance with "tweaks".

I agree with those who said choose before the contract is signed!! I built full custom last year, and the initial estimate was done with allowances, but I chose most of the specific items to know the actual cost before signing the contract. The builder was generous with the allowances, and I was able to save money on most of them (including asking the flooring sub for a discount, saving an extra $1k -- not much for you, but my budget was a heck of a lot less).

The builder doesn't do lighting fixtures, just because there too many choices, so I purchased all but the recessed lighting and basement pieces, which came from the electrician. I did choose a more expensive trim option, but that was a small expense, and I forgot to have them add storm doors to the initial contract.

Long story short, do your homework, and there won't be too many surprises, with the finishes anyway......there are always other unwanted surprises when building :)

laurel52787 , this such a great insightful post. You would think more people would ask this question on Houzz. We do a lot of flooring work in TN and a budget of $10-$14 for site finished including installation would be adequate for custom plank floors. It would be less expensive for narrower prefinished floors. Here is my favorite Nashville project for a modern farmhouse <- link let me know if you have any other flooring questions. joel@oakandbroad.com

Prices do go up and down too. Just because it's an allowance and spec'd, depending on how your contract is, you might be like us and responsible for that overage. If it is builder financed, they're going to want to wait to the last minute to order everything and it doesn't matter to them what they're paying. If it's seller financed, your'e still going to have to figure out how to store all the stuff if you buy early.

I just moved from Franklin, TN and we gut remodeled our 4000 sf house there 6 years ago. We spent about $150,000 just changing out the finishes, moving a few walls, new site-finished hardwoods throughout, new kitchen, etc. We self-contracted it and I would NOT do that again.

Our good friends are McKenzie Construction in Nashville. They do good work and built my BIL's house in Brentwood which has nice finishes. They could give you a better estimate of what you're looking at pricewise :)

While making all your selections before you start your build is good advice if you can do it, it's unrealistic. It would be a rare client who has the time, the knowledge and the patience to make all the choices before construction starts. Consider hiring a good interior designer.

While it's good advice to make all your selections before you build, it's unrealistic. It would be a rare client who has the time, knowledge and patience to choose flooring, appliances, plumbing fixtures, lighting, cabinets and countertops before construction. Consider adding a good interior designer to your construction team.

A true custom build can take nearly a year to plan! Best way to cut the time frame? A team. Architect , builder, designer and you. Oh! And $$$$$$.

While it's good advice to make all your selections before you build, it's unrealistic. It would be a rare client who has the time, knowledge and patience to choose flooring, appliances, plumbing fixtures, lighting, cabinets and countertops before construction. Consider adding a good interior designer to your construction team.

Or you spend enough time in the "design" phase to have all of that picked out (with the help of the designer) right down to the door knobs before ground is broken. :-)

Can be done!

Following >>>start a spread sheet NOW...

JAN MOYER: A true custom build can take nearly a year to plan! Best way to cut the time frame? A team. Architect , builder, designer and you. Oh! And $$$$$$.

Thats a very accurate statement.

I realize this may not apply to you but I'd state it anyway:

Even though our home is considerablly larger and we completely designed our home, right down to detailed plans, we left out firm decisions about flooring, appliances, plumbing fixtures, lighting till it was almost time to install. Even by that time we were over budget, some of which was expected due to a rise in raw material cost, a massive HVAC system, makeup air, a fire sprinkler system, a rat slab in the tall crawl space and significant increase in contruction actiivies in our region. We had setup cursory and laughable allowances for flooring, cabinets, countertops, appliances and lighting. Knowing I'd be over budget (not we), I fought tooth and nail with my builder to try and keep his labor costs down while using his best subs, maintaining very high and critical standards. In the end we did not compromise on anything. We thought about Wolf appliances, fortunately the range configuration did not agree with my DW and we went for a different set of appliances and it all looks stunning. Flooring was a combination of using my materials, my GC's subs and my own subs, again went for the best materials, eliminated all carpet, but shopped around for the best prices. Except cans, I puchased, even designed and had built, and I installed 100% interior and exterior light fixures. Cabinets were all custom to our detailed design specs and it took us several months to select a supplier, I used my own subs for installation while I installed roughly 100 pulls myself. All interior doors, windows, found the best prices and negotiated hard. Entry door is like one to a hotel, designed and had someone built it for us. Plumbing fixtures, easily spent three times of what my GC would have spent but did it anyway. It would be impossible to build this home again for the same investment. End result, the property (with six acres land) is worth heck a lot more than what we spent. Time to build another one? No way! This was my fifth and last forever home.

Thanks for the tip, CPArtist. I'll remember that from now on.

The following are all good advice from the thread above, and they can all be summed up by saying, "Keep control of your choices and make decisions early."

- If you do have allowances, start shopping now for what you like.

- If you want wood floors - that's not enough. You want "site finished, 4' white oak"

- You really need to visit actual stores and get real prices for all of the products if you do not want any surprises.

- I add the Owners' right to terminate the allowance and to provide the
materials themselves if they are not happy with what is offered.

- Following >>>start a spread sheet NOW...

My own advice:

- Ask yourself where you want to splurge ... and how much you want to splurge. If the kitchen is "your thing", then buy the nicest countertops and light fixtures, but do so understanding that you're going to do some "settling" in your bathroom. Priorities.

- Your 4000 square foot size is already a huge splurge.

- Don't feel that you need to optimize every item in your house. I've lived happily in houses with builder-basic light fixtures, etc. It's better to have a house you can afford than to have a chandelier in every closet.

- What sourcing are you personally willing to do? For example, I already have most of my light fixtures ... every one of them purchased on clearance /sale /ebay. I decided the kitchen sink was a splurge, and I already purchased it myself. I'll definitely choose /purchase /schedule delivery for my own appliances too. But I wouldn't be comfortable buying my own windows, bricks, etc. I would feel somewhat "out of my element", and I wouldn't have the ability to transport these things myself.

A true custom build can take nearly a year to plan! Best way to cut the time frame? A team. Architect , builder, designer and you. Oh! And $$$$$$.

Eh, people throw around the word "custom" when they really mean expensive or upscale, but that isn't really true. A small house built with builder-basic items ... but all selected just for the owner and most of it purchased from Lowes ... would still be "custom". On the other hand, a spec house could be priced north of a million ... but it wouldn't necessarily be "custom".

we left out firm decisions about flooring, appliances, plumbing fixtures, lighting till it was almost time to install. Even by that time we were over budget

Sounds like you were okay with it, but this is exactly the situation most of us want to avoid! You don't want to make a bunch of expensive choices up front ... only to find yourself forced to economize at the end.

Worked for me! On the contrary I was able to make better choices later when I knew how much I wanted to and could spend.

^THAT is good advice^

Oh my, I totally forgot to mention that if you're planning on building in Franklin on land that requires a septic system, you're going to be out extra $$$$$. They are pickles to deal with and many builders upcharge you for the hassle they are going to have with them. BTDT. You're going to need a perk test and soil sample done, preferably ASAP, along with surveys and engineered plans for the septic system. A friend of ours was out $60K on just that alone because of what the septic department required him to do.

And when you say "acreage", exactly how much land are you talking about? Because to my farming husband, "acreage" means at least 50 acres whereas to some that means 2 acres. Your land costs will determine what's left for a house budget and land, especially "acreage" (3+ acres), is expensive. It holds its value, though. Plan on at least $175/sf for the house plus porches, garages, septic, etc. That was the last # our contractor friend told my husband.

@ 175.00 a square foot here, you can either put a finger through the drywall and love a swirl on your ceiling...........or you haven't got a stove or a toilet. : (

$175 a sqft is fine around here. We are probably similar to Franklin.

Jan - where are you? Is your area comparable to TN?

It is a pet peeve of mine when someone from a HCOLA is giving pricing advice without that context. I just built about that and I have a range, 4 toilets, 5/8 drywall, and our painters used bondo on seams and nails (except where caulk was needed). I don't see any swirls....

And it was a very expensive layout. Way over code on insulation and sealed to an ACH of 1.9 - which is pretty good given the number of corners....

LOL, Nothing in the northeast is comparable to ANYTHING in Tennessee.

I think the larger point in building a new home is ONE and only one. If you are dead set on a "finished" budget number? At the start, you "firmly" plan to a number lower than the final budget by at least 15 %

Maybe, you will end "on budget"

Any other method? You are kidding yourself from the get go.That rule can apply to all build, any size, any quality, custom, semi, or spec and right down to the dog house in your back forty.

One should also keep oneself aware of trend of property prices in area you are building to try and safeguard your investment. Zillow predicts home values will increase y 6% in Franklin TN as a whole.

In November 2018, average reported price for homes sold in our county in WA was $223 per S.F. New high end custom homes with water views $410/SF and ones with a few acres of land and even better views higher up to $659 per S.F.

Zillow predicts home values in our zip will increase 13.3% next year. Last year we saw a similar price increase. This also affected our property taxes.

Twenty years ago, I was naive enough to ask (before DH and I had ever built or remodeled), "How in the world can someone possibly go 40% over budget on building a house?" Lived and learned - very quickly, I might add.

Definitely plan on less than 1.5 million all in. I'd say plan on 1.3 million all in and hope you stay under 1.5. Best of luck!

shead: LOL You remind me of my DW. She quit asking about that magic number 40%.

Looks like we have a post and ghost. Don’t waste your valuable time offering more advice.

From my personal experience, go lower than budget, then expect to pay more. You can have nice tile that doesn’t cost the earth if you go basic but solid, like all white. You are going to need a lot of everything at that square footage, paint will be needed in enormous qtys, white will be the least expensive option, everything white. If your rooms are large scale, the trim should reflect that.

$175 will get you a simple home on an acre or so. To get to the estale level home on real acreage will need to more than double that. Take a look at what is offered locally. Maybe buy one of those if it checks the boxes.

https://www.zillow.com/homes/?searchQueryState=%7B%22mapBounds%22:%7B%22west%22:-87.180668,%22east%22:-86.709609,%22south%22:35.742133,%22north%22:36.048927%7D,%22regionSelection%22:%5B%7B%22regionId%22:45339,%22regionType%22:6%7D%5D,%22pagination%22:%7B%7D,%22filterState%22:%7B%22isMakeMeMove%22:%7B%22value%22:false%7D,%22isAllHomes%22:%7B%22value%22:true%7D,%22sqft%22:%7B%22max%22:5000,%22min%22:4000%7D,%22lotSize%22:%7B%22min%22:10,%22units%22:%22acre%22%7D,%22sortSelection%22:%7B%22value%22:%22priced%22%7D%7D,%22isListVisible%22:true%7D

We are about to start a custom build in Gallatin, TN (on the water) and we are looking at $240+/sf NOT including land (we have owned our land for awhile). I will say that we are planning on "upgrading" what can't easily be changed later - insulation, HVAC, civil work, etc. My husband has been diligent with scoping the "bones" of the house and my job has been the "pretty" parts of the house. I am spending money in the kitchen (Mouser cabinets, marble countertops, Wolf/SZ appliances) because I cook A LOT and this is important to me. I will budget in other areas that we can easily change later or that just aren't that important to us. We are both really handy and can do a lot of work later if we have to. Mind you, this budget doesn't include much landscaping and does not include the drive to the street (250 ft of asphalt or concrete). I just want you to be realistic - the true SF cost is the level of finishes you are comfortable with (assuming you own the land). Be honest with yourself about what is important. Make a list and prioritize your wishes.