In analyzing the quality and pricing between builders, there can appear to be massive variations in price. How does that translate into differences in quality? There must be something driving the price differences. With literally thousands of alternatives available for one residential project it’s difficult to understand without a concrete instance. In this research, we look at a real-world instance of two homes to discover the difference. In this instance one house is sold for significantly less than the one. There are many variables within these walls, the analysis examines only what is observed on the inside as well as the exterior of the property. The end result of this analysis will reveal the different pricing of builders like housespeck builders and their quoted prices.
How To Compare Pricing Between Builders?
Builder A boasts that he will construct a custom-designed home for less than $60/sf than other builders in town. Builder A claims to offer cheaper prices over other builders. If we make use of round numbers, many other builders are providing the price of $400/sf. However, this builder is offering $350/sf. With a difference of 20% in price, it sounds quite appealing! What’s the difference?
Are The Houses Truly Similar?
For starters, let’s look at the homes available for auction from Builder A. In order to make the two homes similar, the price of the property is taken from Builder A’s listings.
We will be using the Jenkins Builder B Home which has the same dimensions and features, to compare against Builder A. This helps to highlight the differentiators. Since every custom-built house is, in actual fact, unique.
Know Thy Numbers
There are a lot of details that comprise a house. Making compromises on any of these factors will cause the home to appear as a low-cost or production home. While most people have to make concessions however, there are some areas that our customers will typically not make concessions.
The reason that the residential construction industry has fallen into the practice of giving low figures is that there are so many factors that impact the final cost. Builders who advertise low-cost pricing are aware that buyers aren’t going to pay for the cheaper alternatives they can offer, and certainly not in a million-dollar home. Therefore, every time a customer declares, “I’d like to have some covered outdoor living” and that increases the price.
What does it happen to the nice people who believe they are getting the deal of their lifetime at these bargain basement prices? It’s an unpleasant experience that leads to a home that is unmatched bargain basement materials, with the occasional expensive upgrade in the nick of time that the buyer simply cannot endure without. Additionally, the experience is an ongoing battle with the builder and the architect who claims that “you told me” That these elements were going to be included; however, they didn’t appear in the final design or construction documents.
It’s a long, difficult road that could result in expensive project delays and a strain on all your relationships with family and friends, as well as precious time.
The other aspect to take into consideration is what’s hiding behind those walls. If the price has more importance than the quality of construction, what’s behind the walls could possibly be in jeopardy. The architect on the residential construction project does not usually declare what’s in the wall, yet, these are crucial choices. That’s why we have created our design-build experience in which a single firm is responsible for the design and construction. This way it eliminates conflict making the process enjoyable for all.
Contact us
Housespec Builders
Level 2/553 Whitehorse Rd, Mitcham VIC 3132 Australia
Phone: 0458 279 872
Email: andrew@housespec.com.au
Company Hours: 9-5 Mon-Fri
Owner Name: Andrew
Website: http://housespec.com.au
