Allowances aren’t inherently bad — but they are one of the most misunderstood and abused parts of custom home pricing.
Core Sections
What Is an Allowance?
An allowance is a placeholder number — not a fixed price.
Why Allowances Create Risk
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Unrealistically low numbers
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Inconsistent assumptions between builders
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Cost overruns disguised as “upgrades”
Common Allowance Categories
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Kitchens & cabinetry
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Flooring
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Lighting & electrical
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Site work
Advisor Close
If allowances aren’t validated early, they become the fastest way budgets spiral out of control.
