cancel
Showing results for 
Search instead for 
Did you mean: 

How to choose builder for new build house

tag
Anonymous
Not applicable

How to choose builder for new build house

We have been trying to get info on building a home. How do you choose a builder?  I found a house for sale for 354k in near by town. The builder will not rebuid in our county. I found exact plan online and tried to get builder #2 to build and he is quoting min 450k.  100k MORE that builder #1 that included land of 25k.   So we found a less square foot house that builder #2 had previously built, he quotes us 330-340k.  I looked up previous house built and it was previouly for sale at 240.  So again 240 so there is no way it costs 330 to build.

 

I feel thats really dishonest but is this how they all are?  Meeting with a different one so wish us luck,  And how do we get a final price?   

 

thanks

 

Tara

Message 1 of 2
1 REPLY 1
StartingOver10
Moderator Emerita

Re: How to choose builder for new build house


@Anonymous wrote:

We have been trying to get info on building a home. How do you choose a builder?  I found a house for sale for 354k in near by town. The builder will not rebuid in our county. I found exact plan online and tried to get builder #2 to build and he is quoting min 450k.  100k MORE that builder #1 that included land of 25k.   So we found a less square foot house that builder #2 had previously built, he quotes us 330-340k.  I looked up previous house built and it was previouly for sale at 240.  So again 240 so there is no way it costs 330 to build.

 

I feel thats really dishonest but is this how they all are?  Meeting with a different one so wish us luck,  And how do we get a final price?   

 

thanks

 

Tara


It's not that builder #2 is dishonest. There could be many reasons for the price difference:

  • land cost in your county is higher or the land is larger, therefore costs more
  • building permit fees may be higher
  • labor may be more
  • could be different/better material materials included in the second quote - this is wide open. Different builders spec their homes with different standards.
  • When where those other homes sold?  Could be a difference in the market between then and now.
  • Builder #2 could have different profit margins

 

Getting to a final price is a matter of putting together a spec sheet and blue prints and having all the builders/subcontractors bid on the plans.  

 

Is it possible that builder #2 is a custom builder and not a production builder?  That alone will add to your costs.

 

One more point:  it is possible that builder #2 doesn't want to build that plan so he is pricing it high. I see this with builders when they get outside of their comfort level, they price it to discourage using a particular plan or a particular feature in a plan. Why?  Sometimes it's because the builder knows it will take 2 or 3 times to get it right (the feature) so they are building in the extra cost to fix it. Smiley Happy  

 

One of the red flags in your post is that builder #1 doesn't build in your county.  This usually means he isn't licensed there - or some other reason.  Is your county a little more difficult for inspections?  Find out why builder #1 doesn't build there. Maybe it is too far away?  Could be something simple like distance or something more involved. 

 

Don't automatically assume that it is the builder being dishonest. 

Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.