In recent articles, we've discussed three key elements that affect the cost to build a house: location, house plans, and features/amenities. Now it's time to talk about how the builder affects the cost of your new home.
There are two primary ways builders can affect the cost—one that is easy to measure and compare, and one that isn't.
Price seems like a pretty simple thing, right? But if you take the same floor plan and specifications for products and materials to two different builders, you'll get a different price from each one. (That's assuming they're all using a fixed-price contract rather than a cost-plus.)
Why are the prices different for the same plan and specifications? There are a few reasons.
This is the one that's nearly impossible to calculate, but you can get a pretty good gut feeling for it by shopping around and asking good questions.
Sometimes a small builder will give you a good price up front because he's desperate for a deal, but it leaves you with the expense of fixing his (initially hidden) mistakes and cut corners.
Sometimes a builder with poor quality controls will leave a house with poorly done insulation, caulking, and other hidden issues that cost money every month in the form of higher utility bills.
A house that's a bargain when new is likely to be a bargain to the next buyer as well. Don't expect to get a good deal when buying and then get a premium price when selling. Whatever it is that made the house cheaper when you bought it probably didn't go away while you were living there.
Take time selecting your builder, and make sure you ask lots of questions up front. If a builder dodges those questions, it's time to move on to the next potential builder on the list.
A home builder for 18 years, Tim is the "son" in Turner & Son Homes. He is the CEO of the company and partners with his dad, Ben, who has been building since 1964.
The current home on our property has been in existence for over 80 years. We love our property, and made our decision to build our new house there. Turner and Son was the first company we considered and we didn't have to look any further.
The Wells family
March 9, 2016