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What is it about the satisfaction of loading up your car after a trip to Costco? Is it the 24-pack of protein drinks, the giant bag of M&Ms, or the rotisserie chicken? There’s just something we all love about getting a good deal, whether it’s the ever-illusive 36-pack of toilet paper or something bigger–it makes us feel accomplished (in a first-world sort of way).
As consumers, we love to get a good deal, especially on large-ticket items such as a new home. Many factors contribute to the overall cost of building a new home. The builder you choose can have a significant impact on the amount you spend. It’s important to choose a well-established builder with buying power to ensure you receive the best price for your dream home.
Buying power is the ability to purchase a lot of materials and services at a better price because they are purchased in bulk. For example, consider a household staple like light bulbs: if a bulk package of 10 light bulbs is $15, then each bulb costs $1.50, but if a two-pack of light bulbs of the same brand sells for $4, then each bulb costs $2. Clearly, the larger package is a better value. #costcomath
Home builders have this type of buying power when they purchase building materials, appliances, flooring, light fixtures, cabinetry, and much more. The benefits of a builder’s buying power, however, extend beyond merely saving the home-buyer money, as outlined below.
1. Keeps Builders on Schedule
Having the materials on hand, when they are needed, reduces the possibility of late deliveries and schedule delays. Any delay, even if it’s by only a day, can cause previously-scheduled crews to be unable to accommodate the delay and may not be able to return to your project for weeks. When projects get extended, costs invariably go up.
2. Provides a Consistent Quality in Workmanship
Homebuilders work with high-quality contractors and can maintain a high standard because of their long-standing relationships with these contractors. These contractors work hard to ensure that materials and services aren’t delayed or diminished in any way for their best customers.
3. Home Builders Receive the Best Prices for High-Quality Products
An established home builder’s buying power enables them to provide their customers with proven, trustworthy products at a better price. You are able to tap into a much better market of high-quality products at discounted prices than if you were to buy the products at retail prices.
4. Builders are Used to Working with Specific Materials
A builder with buying power has established relationships with certain suppliers, and that means they use the same materials over and over again. They know how they work, and–more importantly–how to install them quickly and correctly. If you want to order your own materials, it will almost certainly add to the amount of time needed to finish building your new home.