Production Builders vs. Custom Builders: Which is Right for You?
Production Builders
Pros:
- They offer fixed prices. Because production builders build the same homes over and over, they have a better idea of prices. A production builder can give you a near-exact cost, which means you can choose a home and plan more effectively.
- They negotiate the best deal with contractors. Production builders tend to use the same contractors for their homes. This allows them to negotiate stellar bulk deals on supplies and services, passing the savings onto you.
- They’re faster. Managing tight schedules and multiple contractors is a science for production builders. Barring any major snafus, production builders are faster and operate on tighter timelines than custom builders.
- They offer development amenities. Production builders usually create entire developments at one time. They typically develop amenities like parks, walking trails and even sports courts as a draw for potential homeowners. That means you’ll score major perks by choosing a builder’s development over buying your own lot.
Cons:
- You’ll be restricted to existing plans. To keep costs low and predictable, production builders reuse a catalog of plans. Your home won’t be one-of-a-kind and there may be several others in your development with the same or a similar home.
- Your customizations are limited. Some production builders allow a little customization inside the home. You may be able to have a larger master bathroom or opt for a breakfast nook. But you won’t be able to change the size of the home and may be restricted on things like window sizes or moving walls. You’ll need to choose a plan that’s close enough to what you want, which could put a damper on building your “dream” house.
- Your fixture choices are limited. When choosing things like carpet, tile, counters and fixtures, you’ll pick from a set of pre-chosen options that the builder allows. Restricting choices keeps prices predictable but it could make you feel stuck with options you don’t really love.
Custom Builders
Pros:
- You’ll get a truly unique product. Custom builders start every home from scratch. Whether you come with a plan you found online or you want to create something yourself, each home is unique and designed to your specifications.
- You can choose your own architect. A custom builder might have a preferred architect or designer, but you can bring your own, too. You aren’t limited to any set of plans and if you love an architect’s work, you can have your plans drawn before you start working with your builder.
- You’ll have more choices. Want all-gold fixtures? Done! Want a Game of Thrones mural in your game room? Go for it. Want an oversized deck and huge pantry? It’s yours. A custom builder isn’t restricted in any way, so you’ll get to make every choice to your tastes along the way.
- You’ll have more input. Custom home builders love collaboration, so expect to have more input along the way. Visiting the construction site and having more control over your build is par for the course. It’s a better choice for control freaks or those who truly want the full build experience.
Cons:
- Expect a longer build. Custom jobs take more time because there are more decisions to make and contractors are lined up on an as-needed basis. It takes time to send out for bids and hire contractors for your home. Expect a custom job to take longer than a production build.
- Less predictable costs. Custom builders usually use a cost plus model, which means the cost of goods and services plus a percentage for managing the build. It’s much harder for a custom builder to predict costs because each build is different. Your cost will depend on all of your options, contractor pricing and industry prices that fluctuate.
- No bulk pricing. Production builders negotiate bulk pricing from the same contractors, but it’s unlikely your custom builder gets the same preferential treatment as a production builder. Your end cost could be slightly higher based on that fact.
- Too many choices. A custom build can seem like too much of a good thing. Picking all of your fixtures, colors and options can definitely become overwhelming, especially if the sky’s the limit and there’s no way to really narrow down your options.
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