Interest and Pricing Fluctuations

Interest and Pricing Fluctuation playing a role in your decision-making? Many people have already locked into a home site reservation, but you and your agents are watching, and you have a lot of colds out there. Keep hanging on. 

As you may know, we have to turn people away every day. It’s just what has to happen, as we only have so many homes available. However, if you hang on and be patient, we will have something right around the corner. 

We know we have been saying that for a while; product materials and availability are the best fit right now. 

Interest and Pricing Fluctuations

In most construction contracts where fluctuation provisions have not been used, the contractor bears the risk of price rises. 

At the time of tender, the employer and the contractor agree on a contract for a specific price, and the contractor is the one who suffers if the materials or labor are required to go up in price. 

With fluctuation provisions, the aim is to transfer some or all of the effect of price changes (more commonly, of course, in an upward direction because of inflation) in the cost of labor or materials during the contract, from contractor to the employer, by adjusting the final contract price. 

However, if the price of materials inflates to a high level, the employer risks spending increasing, and perhaps unforeseen, amounts.

Lock in Your Interest Rate

You can also lock your interest rate with new construction loans for up to a year with select lending institutions, and we have one as our preferred lender. With building with us, you know the excitement they see in equity. They think, “yeah, you’re doing all right.”

It’s not uncommon to drive through St. Charles County, and this is how we stand apart from St. Charles County.

For the past 50+ years, Cannon Builders has been a family-owned company providing new construction on residential structures. Call Holli or Shelly today to help you start building your dream home at 636-775-1911. Visit our website at www.cannonbuilders.com.

Wondering if now is a good time to buy a new home? Visit this blog post:  It is (Almost) Never a Bad Time to Buy a Home | Cannon Builders