How to Compare Pricing Among Home Builders
If you were in the market for a new car you’d never just walk into a dealership, randomly point to a car in your favorite color, and tell the salesperson, “I’ll take that one, as long as it’s in my budget.” You research makes and models, analyze features, read reviews, compare price points, and take test drives to determine which vehicles best suit your needs and meet both your budget and checklist of requirements. Choosing a custom home builder is no different. You’ve got a lot at stake here! Take the time and effort to research your options before signing on the dotted line.
What to Look for When Comparing Pricing Between Home Builders
As the saying goes, make sure you’re comparing apples to apples. Builder A may quote an attractive price on home that Builder B can’t match on a home of similar size and quality. Dig a little deeper; is Builder A including architectural and engineering fees in the quoted price? What about the building permit, and water/sewer tap fees–are those included? These few items alone can account for as much as 4% – 7% of the cost of a home. What about the quality and types of the finishes in the home? Ask for a list of base home specifications and compare them from one builder to the next, and remember not to assume that a model home is built using the base specifications, as most are shown with upgrades. And, while it’s easy to get caught up in the aesthetics of the home, don’t neglect to research and compare the types of materials and craftsmanship the builder employs behind the walls.
Other Comparisons to Consider When Choosing a Home Builder
In addition to the the quality and price-point offered by the builder, consider these non-cost-related items when choosing a contractor:
- Reputation
How long has the builder been in business? Research and read online reviews, ask for customer references and follow up on them. - Warranty and Service Promises
Compare warranties among builders; do they cover the major mechanical systems of the home, and if so, for what period of time? What is the warranty process–will you be working directly with the company, or with a third party to resolve warranty issues? While neither approach is inherently right or wrong, it’s good to know up front how warranty claims will be handled. - Licensing & Insurance
You’ll want to make certain that any contractor with whom you choose to work is properly licensed and insured, not just as a company, but also in carrying the proper policy on your home while it’s under construction (Builder’s Risk insurance). - Completed Portfolio of Homes
Any reputable, established builder will have a portfolio of homes to showcase their work–whether actual model homes, photos, or the homes of former clients who are willing to invite you in for a walk-through. Builders will likely also have a library of architectural plans that could serve as your starting point from which to design your own home. Different builders have different styles, and some are more willing to do custom work that others, so consider this, as well, when making your selection.
When you’re ready to build the custom home of your dreams, give us a call! Sheffield Homes has been building custom and semi-custom homes in the Denver metro area and in northern Colorado for more than forty years, and we stand behind our reputation for excellence and integrity in construction. We’d love to work with you! 303-420-0056
