Pricing Information - Bank Financing

EquityQuest Homes works with many banks in the Pacific Northwest. They are the lifeblood of our business and we guard our relationships with them. We work hard to obtain and maintain the status of approved General Contractor.

Most banks that offer construction financing at market rates require their clients to hire a General Contractor for the entirety of the project.

There are 2 tiers of pricing available to our bank-financed customers:

Turn-key Pricing: this tier does not include any direct contracting. Owners have EquityQuest contract for and complete all processes in the building of their home (with a few exceptions based on owner preferences). In this tier our Builder Fee is calculated by marking up all building tasks by our full markup rate.

Direct Contracting Pricing: this tier includes Direct Contracting by the owner. This tier can save you thousands in Builder Fees (our Builder Fee sometimes ends up half of what other custom home builders would charge). We know of no other custom home builder who does this.

EquityQuest Homes is one of very few builders who encourage owner participation, yet most banks do not allow owners to work directly on the structural components of their home. This desire to get homeowners involved while keeping our banks happy led us to develop our Direct Contracting program. In our program we remain the General Contractor for the entirety of the project and we strongly recommend our owners only direct contract with qualified finish contractors. This system has worked well with lenders because they know EquityQuest Homes will make sure the home gets finished to contract specifications even if the owner’s contractor does not perform.

In the Direct Contracting tier our Builder Fee is calculated based on the level of EquityQuest involvement.

• On normal contract items (items we contract for and complete), the Builder fee is calculated on our full markup rate.

• On items owners have chosen to Direct Contract, our Builder Fee is calculated using our minimum markup rate.

  • This minimum markup rate reflects EquityQuest’s reduced scope of work, but also recognizes the on-going obligation General Contractors have to lenders, permitting authorities, state agencies and other contractors. In addition it reflects the on-going risk all General Contractors have for work-in-process and the on-going liability General Contractors have for completed projects - even for processes completed by owners and their contractors.