custom home builderThere are many misconceptions when it comes to the cost of custom homes. Many people believe that having one built will cost them a fortune. The truth is, constructing your dream custom home does not need to be a budget killer.

There are three kinds of home builders. The quality of work, prices, and customizability depend on these three groups. You need to know the differences in home builders and you will understand why custom homes do not necessarily mean they cost more.

National Production Builders

There are several different national production builders. If there is one thing that you need to know about this type of builder is that they are not in the home business. They are actually operating in the land business. They purchase land from farmers and other low cost opportunities and once they made the purchase, they will proceed to developing the land. They depend on the economies of scale to significantly reduce the cost per lot. Basically, they adhere to a very similar blueprint for each home (in terms of labor and materials) so the whole operation can be performed as cheaply and efficiently as possible. The houses are built in bulk and they prefer residential locations that are attractive to home buyers.

The price you pay will surely be worth it when you deal with national production builders. They are not trying to make a huge profit on the house. They concentrate on profiting from the land that they purchase. Throughout the years, these builders have nearly perfected this particular routine. As a matter of fact, most homes that homeowners live in initially are built by these builders.

National production builders are professionals. They have a very good understanding of the market place and they know very well what they are doing because they have been in this business for a very long time. The main disadvantage is that you will not be getting a custom home. This should be your first option if your primary goal is to remain within a tight budget.

Semi-Custom Builders

There are some custom home builders are actually semi custom builders. They buy lots in subdivisions, which is a big plot of land that has been split into separate lots for home builders, and may or may not let you make alterations. Always remember that the changes that you are permitted to make may not include moving around the exterior walls. You may also not be able to make any huge changes to the whole house. That is why they are called semi builders. They provide restricted customization but do not come with the same low price that you will get from a national production builder. Semi custom builders can construction homes with costs ranging anywhere from inexpensive houses to multimillion dollar mansions.

Custom Builder

Now this is the real deal. They begin with a blank piece of paper and start designing your home from start to finish. So, everything that goes into it including the finishes will affect price accordingly. This also applies to more affordable materials.

If there is one thing you need to know, it is the fact that you can have a fully custom home at a price you can afford.

Semi custom builders don’t have access to the exact same economies of scale that national production builders have access to. They can access the same materials and contractors as custom builders. If you go with a semi custom home, you will find up paying more than a national production builder without enjoying any significant customization. Remember, you’re purchasing semi custom builder’s design and floor plan. Therefore, if you are looking for a real custom experience then this won’t give you what you need.

Economies of Building A Home

If you want to fully understand the way this works , you need to take a deeper look at economies of scale when considering home building. Production builders can save a lot of money by building houses en masse, just like an assembly line of production.

However, the moment you get away from that and go to a semi custom builder then you have lost almost 100% of the price drops. Semi custom builders cannot get their hands on lower prices compared to a real custom home builder. For instance, they pay the same price for materials and labor. No subcontractor or supplier will offer more affordable pricing to a semi custom builder because they will lose their other business.

All these things are the reasons why it is nearly deceptive to claim that a custom home will cost more. As a matter of fact, in some cases Myrtle Beach custom home builders will give more competitive prices compared to a semi custom home builder. The cost of building a custom home will be almost the same as the price of a semi custom home since they cannot benefit from any economies of scale.

Keep in mind that there are no secrets to this kind of business. If somebody tells you that they will build you a better home for a cheaper price, then it should be a national production group. In case there was a much better or more affordable method to construct to homes, Dawol Homes will do it.

If you have made up your mind and want to build a custom home, do not hesitate to get in touch with Dawol Homes.

Dawol Homes
3100 Dick Pond Rd # E
Myrtle Beach, SC 29588
(843) 294-2859