I’m going to be telling you about how to choose the right builder for you– how to find the builder that’s going to give you the end result that you’re after. You need to determine, first of all, why you’re building the home? If you’re going to build a home and sell it straight away you may not need to focus on quality, you may not need to spend the money on a quality builder because you’re going to sell it straight away. On the other side of that you may want to build a home that you want to live in the rest of your life and quality is really important because you want your house looking fresh and brand new five, ten, fifteen years down the road. This really is the key to finding the right builder. If you get the wrong builder for you you’re going to have a terrible experience and hate building. If you find the best builder for you you’re going to want to keep doing it over again and again.
How do you determine which builder is the right one for you? Think of all the builders inside of a pyramid shape where the pyramid is broken up into five groups.
At the bottom of this pyramid you’ll find all the cheap builders. These builders make their profit on volume. They have to build a lot of homes. Some of these builders will build 100 to 120 homes per month. Mass volume but they have to have minimum staff. It’s all about having low cost staff. One of the staff may be frequenting 35 to 50 homes at any one time and their job is to make sure the houses are moving forward and it’s not necessarily focused on quality. They have to because they have to keep the costs down.
The next builders up the pyramid will have less jobs but a more expensive price tag. The second group build a lot of homes, bigger homes, cheaper homes but very basic. You can only make very basic changes to them and they’re done at very low cost. These guys build very big and basic homes and the focus is on being cheap.
The third group takes on a lot less jobs. They are more focused on quality and attention to detail. You do pay more for it but at the end of the day the home will look fantastic for years to come. They want to take on a moderate amount of homes but the people working on the homes are only working on ten to twenty homes at any given time. Much more manageable, much more attention to detail.
The fourth group are the builders that are building cheap two stories. These guys are building two stories on a budget. Because it’s two stories and a little more complicated they need to build few homes.
The fifth tier is the most expensive homes and the most attention to detail. These are the homes in the $500,000 to $2,000,000+. These builders only work on a few homes and have extreme attention to detail. These builders do the tricky jobs and you pay much more for this builder.
This gives you a bit of a scale. A question I get a lot is that a buyer is looking at two different builders and one builder comes in $20K cheaper and they want to know why. The reason is that the two builders are from two different groups. You could go with the $20K cheaper builder but you’re going to sacrifice quality because this builder focuses on volume.
Unfortunately you’re not going to know the outcome until the builder hands you the keys. Really do your research. Read about the builders and read the comments from people. They may clue you in on whether this builder specializes in quality or volume.
The biggest thing you want from the builder is that you want to know how they’ll react to your problems. You will have problems during the build process. You’re going to be spending hundreds of thousands of dollars on a home and it can really tick you off when they make little mistakes they just weren’t aware of. It’s good to know how they’ll react to these problems and whether they make them right with the buyers.