There 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.

Custom Homes Vs. Non-Custom Houses

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 develop the land.

They depend on 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.