What do Professional Custom Home Builders do?
- Fully Customized Home Builders.
- You won’t often build the exact same house plan twice
- Are often working with the owner’s plans or specifications, or those given to them by the architect
- Are almost always on customer-owned land
- You tend to prefer smaller outfits and higher-end items.
- These contracts are usually written cost plus a percentage or contractor fees.
Why Do Custom Home Builder use Cost-Plus Pricing
1. Budget – Because their work is so specific and varied, they don’t always know how to budget.
2. Project-Based – Because their projects are unique, they often base their estimates on labor and material bids from vendors and subcontractors.
3. Customer Financing – Customers often provide financing.
4. Sales by Owner – They may not have a separate sales team from the owner/operator or a model homeowner.
I know a builder who asked his client, “Rick, where are you going to purchase these doors?” The profile we have drawn at dealer showrooms doesn’t exist, I’m afraid. The general contractor looked at the ceiling and said that David, the trim man was up in the attic, where he was milling the lumber with his table saw.
This is a completely custom builder.
What do PRODUCTION Custom Builders Do?
Construction Home Builders
You will usually own several lots in a subdivision
You can build hundreds of thousands of houses. These are the DR Hortons and Lenars, as well as Toll Brothers
Use a standard set specifications. These can be upgraded according to pre-established options. Often, the plan changes that they allow are restricted to a pre-designed set.
A model home, a sales center or an office in the area are all possible.
These builders offer financing options for their custom built homes, a design studio and full-service staff. They also make minor modifications to stock home plans. They can purchase land in attractive locations near job centers and their contracts will be fixed-priced.
What do SEMI-CUSTOM home builders do?
Semi-Custom Builders of Homes:
A portfolio of plans is fine, but they can be customized for home-buyers.
Standardizes that are consistent from one house to another, but allow the owner to purchase some of their fixtures.
In-house sales staff are common and may have a model house or a center.
For a quick move-in, build homes
They may provide financing for construction, or if they have OYL (on your property) buildings, they will work with you to arrange construction-to-perm financing
Offering liberal upgrade options may be possible for custom builders who adopt more production-oriented methods to scale their businesses. Fixed pricing is a common feature in their contracts, with some allowances for material choices.
SEMI-CUSTOM Builders combine fully custom and production builders. This category combines the operations of a producer builder with the creativity and flexibility of a custom builder.
A Myrtle Beach home builder excel at many things, which is what you need to remember.