Aug 18, 2006 11:46 am
I've noticed an increasing number of Spec home builders dropping their price to build, e.g Simmonds home at $99k for 15sq (13BUILD), or National Home Builders at $4600 per Sq. etc.
If anyone can help, my question is, will it be more cost effective to use a Spec builder or to assign the job to a small local builder. I understand the finish of the Spec homes is more towards budget fittings, I would ask the local builder to build to the same level of a Spec home. But to my design.
The way I see it, the Spec home builders have big offices, lots of staff, display centres and spend very big on marketing and advertising, sure they have a stronger buying power and their material costs may be lower, however all those other costs need to be covered, yet they can build fairly cheaply.
A small builder does not have all the huge overheads of a Spec home builder, but, some of the prices are incredibly outrageous, for what I would consider to be the same quality.
Am I missing something?
Re: To Spec or not to Spec..2
Aug 18, 2006 12:56 pm
Hi King Leo,
Having just gone through all of this, I didnt think that a price per square is a realistic comparison. It really comes down to features, inclusins v extras, sizing, design etc.
If you are close to a decision, and the designs and features are very similar, then maybe you can negotiate.
As to smaller builders, I looked at them, and there were a couple I looked at. In the end, reputation, homework, price v design and inclusions saw the buying power of a major builder win my business.
Just my thoughts.
Good luck though, let all and sundry know how you go.
Re: To Spec or not to Spec..3
Aug 19, 2006 1:21 am
Very expensive option when compared to a cookie cutter home from a volume builder. Why do you think they have standard designs in the first place? Certanly not to make it more expensive.
I would ask the local builder to build to the same level of a Spec home. But to my design.
If you want to save money and have a limited budget then go with a large volume builder and don't change anything. Otherwise, be prepared for a significant jump in cost.
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