Custom builder or pay for own floor plan and take to builder

Mofflepop · Jan 24, 2024 1:32 pm

I’m trying to avoid being quoted high because the builder thinks you are invested too much with them to leave.

Not sure whether a custom builder is a better option than a volume builder, as I’ve heard custom is more expensive, or should I get the plans done first and take to various builders?
I’m not even sure of which builders would build a house with plans that aren’t their own? And I’m afraid the cost! (For both options).
I have no idea if getting my own plans done will mean I have only a few builders to choose from, and if going with a custom builder will mean they charge a lot more because they think they’ve got your full buy-in….

Can anyone share their experience?

amilelka · Jan 24, 2024 2:05 pm

Definitely get your plans done with a designer you trust. Some designers will design and then tender to different builders on your behalf. They then earn a commission from the building company and you get your design for free.

ponzutwo · Jan 24, 2024 2:15 pm

you should ask yourself what your budget is first.

Custom is always more expensive when comparing apples to apples (same size house, finishes, etc). If yuore afraid of the cost, you probably not in a position to have a custom home built.

When you have your own plans done, that wont guarantee you any safety, pricing certainty or taht the builder wont go bust on you. All of these risks apply to all builders. However, a GOOD custom builder with appropriate financial acumen will have priced that risk in and passed it on to you anyway.

When you get your plans done, you will be paying up front for some drawings, files etc. These are not cheap. Think that youll get yourself a good deal at ~10k if its legit custom.

the only thing that getting your own plans guarantees you is choice of builder and the ownership of those plans (as long as you have discussed and agreed that aspect with the designer/architecht) - for that privilege you will pay a healthy sum.

You can take those plans to as many builders as you like that offer custom builds, and you can get a thousand quotes if you wish.

My suggestion is get a feel for the size of the house you would like - 20 squares, 30 squares, 40 squares? look at those prices at a volume builder, add 20-40% for as those house prices are BASE regardless of what the marketing makes you think you get. Is that pricing what you expected or do you have a lot more wiggle room? If you do have wiggle room, then, hey you may be lucky enough to go custom. If those volume builder prices +20-40% prices are even remotely close to you budget, you cant afford a custom builder.

NativeZen · Jan 24, 2024 2:20 pm

I'm a building designer based in Perth. We tender our designs out to several builders to get the best value for the client. If the client signs up with one of them then we earn our fee through a commission only. Quite a few designers and building brokers utilise this process so it could be an option for you.

It doesn't inflate the cost of the house to the client - the designer just gets the comission instead of the sales rep. It's a great way to compare builders while retaining ownership of your design.

ponzutwo · Jan 24, 2024 3:24 pm

NativeZen

I'm a building designer based in Perth. We tender our designs out to several builders to get the best value for the client. If the client signs up with one of them then we earn our fee through a commission only. Quite a few designers and building brokers utilise this process so it could be an option for you.

It doesn't inflate the cost of the house to the client - the designer just gets the comission instead of the sales rep. It's a great way to compare builders while retaining ownership of your design.

who owns the design, you or the client?

NativeZen · Jan 24, 2024 3:50 pm

We retain copyright ownership but grant the client a non-exclusive licence to use the design.
There are cases where copyright ownership can be purchased though, for example to a builder or developer who wishes to replicate or resell the design.

ponzutwo · Jan 24, 2024 4:06 pm

NativeZen

We retain copyright ownership but grant the client a non-exclusive licence to use the design.
There are cases where copyright ownership can be purchased though, for example to a builder or developer who wishes to replicate or resell the design.

Yep so in you tendering the design out, the client is again limited in choice of builder, which may be what they are trying to avoid in the first place. Obviously, that's not an issue if the client is aware and happy for that arrangement

Just making sure op has the info around "getting your own plans" doesn't always mean what you think it means.

Mofflepop · Jan 24, 2024 6:29 pm

NativeZen

I'm a building designer based in Perth. We tender our designs out to several builders to get the best value for the client. If the client signs up with one of them then we earn our fee through a commission only. Quite a few designers and building brokers utilise this process so it could be an option for you.

It doesn't inflate the cost of the house to the client - the designer just gets the comission instead of the sales rep. It's a great way to compare builders while retaining ownership of your design.

Wow! That is great to hear! Very interesting, will look into it further, thank you ☺️

Mofflepop · Jan 24, 2024 6:38 pm

ponzutwo

you should ask yourself what your budget is first.

Custom is always more expensive when comparing apples to apples (same size house, finishes, etc). If yuore afraid of the cost, you probably not in a position to have a custom home built.

When you have your own plans done, that wont guarantee you any safety, pricing certainty or taht the builder wont go bust on you. All of these risks apply to all builders. However, a GOOD custom builder with appropriate financial acumen will have priced that risk in and passed it on to you anyway.

When you get your plans done, you will be paying up front for some drawings, files etc. These are not cheap. Think that youll get yourself a good deal at ~10k if its legit custom.

the only thing that getting your own plans guarantees you is choice of builder and the ownership of those plans (as long as you have discussed and agreed that aspect with the designer/architecht) - for that privilege you will pay a healthy sum.

You can take those plans to as many builders as you like that offer custom builds, and you can get a thousand quotes if you wish.

My suggestion is get a feel for the size of the house you would like - 20 squares, 30 squares, 40 squares? look at those prices at a volume builder, add 20-40% for as those house prices are BASE regardless of what the marketing makes you think you get. Is that pricing what you expected or do you have a lot more wiggle room? If you do have wiggle room, then, hey you may be lucky enough to go custom. If those volume builder prices +20-40% prices are even remotely close to you budget, you cant afford a custom builder.

Yep, very good point. I’ll do more research and see what figures I get. Thank you!

DraftRoom · Apr 01, 2024 8:18 am

Hi Mofflepop,

I would recommend finding a building designer to prepare plans, they should design to your specified budget. The benefit is you can tender the project out to many builders and compare quotes, however, you will need to pay for these services upfront. Typically when getting plans drawn up by a builder they will own copyright of the plans and you can't get others to tender.

The advice from NativeZen is consistent with most building designers.

Hope this helps!