Feeling overwhelmed by the number of builders to choose from?
You’ve dreamed about and saved up for your new home – but now you’re stuck on choosing the right builder. It’s like being at a buffet, only you’re allergic to half the options, and the other half is questionable. So, how do you make sure you’re getting what you want without a side of buyer’s remorse?
The root to that problem is most likely that you’ve assumed all builders are the same.
Classifying your top choices into these three categories may eliminate two-thirds of your top picks: Spec builder, custom home builder, and design-build professional.
Not all builders are created equal, and understanding the differences can save you from a lot of money and headaches down the line.
1: Spec Builders - The Fast Food of Home Building
Spec builders are like ordering off the value menu – quick, cheap, and no surprises (well, maybe some surprises). But just like that burger that never looks like the picture… you get what you get. Great for first-time buyers, but if you’ve got a Pinterest board full of ideas and looking for a forever home that can function with your growing family, you’ll probably leave hungry for more.
Spec = Speculation; a builder builds a house on speculation (without a buyer) and lists it for sale in hopes a buyer will buy it. The risk is on the builder because they can only charge what the market will handle and they’re left with the house and its debt if they cannot find a buyer. To keep this a sustainable business model, the home needs to be built as quick and cost-effective as possible. To build something quick and cost-effective means building the same house over and over without a lot of bells and whistles. Just copy-paste and pump it out.
Spec builders tend to have a few ‘models’ to choose from and you may even get to ‘customize’ things like cabinetry colours and light fixtures – but let’s be honest, that’s not even close to a ‘custom home’ in the design-build world.
Pros:
- It’s ready now, or can be built quick
- Cheapest option to get you into a new home
- No stress of going through the building process (but who says it has to be stressful?)
Cons:
- It’s their vision, not yours
- The home is typically more basic (say goodbye to heated floors, ceiling-height cabinets, upgraded lighting and details that make the home unique to you)
- You most likely won’t have a previous relationship with the builder prior to jumping into such a big purchase
- Others in the neighborhood will have the exact home as you
The vast majority of homes built in Saskatoon are by spec and tend to serve the first-time home buyer market. There are some excellent spec builders in Saskatoon who will meet your expectations if you’re looking for a new home.
If you haven’t noticed… We got into the home building scene by building spec homes but our brand was quickly recognized because of the amount of upgrades and unique details our spec builds had and the fact that we’ve never built the same home twice (proven an unsustainable business model but we did what we had to do to show off our design capabilities… without starting with spec builds we would’ve had to say, “Hey, do a design-build with us! We’ve never built a house before, but just trust us.”
2: Custom Home Builders - The A-La-Carte Approach
Then there’s the custom home builder. Think of them as the fancy restaurant where you get to pick every ingredient (some of which you may have to source yourself), and may not know the total price until you’re done eating. Want those marble countertops and a hidden wine cellar? Sure. But be ready to pay for each upgrade and brace yourself for the back-and-forth with architects, designers, suppliers and trades. “Custom” can quickly turn into a euphemism for “complicated and costly” if the design isn’t 100% complete prior to building.
A custom home builder can take your instructions and make it happen. But the key word here is: ‘instructions’. Who is providing such instruction? That’s up to you. Either you go out and get your floor plan drawn by an architectural technologist and then go to each and every supplier to make selections and develop your own specifications (just to give you an idea, our specification booklet is usually 130 pages for a custom design-build), or you hire a third-party designer while that’s another group to manage and communicate with.
Let’s use the example of IKEA furniture (don’t worry, a custom home has much greater quality than a piece of IKEA bedroom furniture) and that your friend has asked you to build them a bookshelf. IKEA designs the bookshelf (the designer), and you assemble the bookshelf (the custom home builder). You as the ‘custom home builder’ are at the helm of following instructions you never created. Your friend may get frustrated because it’s taking you way longer than you told them it would to assemble the bookshelf, and if you’re billing them by the hour, well, they’re gonna be upset when they get that bill.
Pros:
- Construction can usually get started fairly quickly because all you need is a floor plan and then the exterior and interior design decisions are made during construction
- The budget presented to you will look pretty appealing (see the first con item on why it may be too good to be true)
- Custom home builders are okay with you changing your mind on things during construction (because change orders = change order fees)
Cons:
- You’ll be given an estimate with allowances and those allowances will most likely be unrealistically low, leaving your way over budget in the end
- Since design decisions happen throughout the course of construction, you won’t find out the true cost of your build until the end
- The mental stress of needing to make emergency design decisions (quick, the electrician is on site, what height should your dining room chandelier be place at?) will take a toll on you
- The build usually drags on longer than planned due to not being able to make design decisions quick enough or changing your mind once you see things installed
- You can hire a designer, but now you’ll have another third-party to manage
Third-party designers and custom home builders can create and develop some pretty epic spaces. Just understand the extra implications that come along with having to communicate and manage two separate businesses.
Third-party designers and custom home builders can create and develop some pretty epic spaces. Just understand the extra implications that come along with having to communicate and manage two separate businesses.
3- Design-Build Professionals: Your Personal Chef
Finally, the design-build professional – the personal chef of home building. They take your ideas, refine them with expertise, and bring everything together seamlessly. You can taste-test at the beginning while they capture every ingredient and determine what it will cost. Imagine having a team that handles both design and construction under one roof, with a fixed price from the start? No surprises, no finger-pointing. It’s your dream, cooked to perfection, without the mystery sauce.
Design-build professionals are often mistaken to be the same as custom home builders. The key differentiator is that a design-build professional conducts all of the design in-house and before construction even starts.
Pros:
- The designer and builder are one team. You have one point of communication, your design details won’t get missed, and your designer is educated on the costs of construction to ensure you aren’t going to end up with an end product that is 50% more than your budget
- The chances of having any design regrets after moving in is very slim because you’ll already know what your home is going to look like thanks to the 3D tours
- You’ll be given a move-in date that you can trust even prior to construction starting because the schedule can be accurately developed since all of the design details are inputted
- The price you’re quoted will be the price you pay, down to the penny
- You could go on vacation for the entire duration of the build because you won’t be expected to make any decisions since the design was finalized before starting construction
Cons:
- Time. Design doesn’t happen overnight. After all, a custom home is meant to last through generations of your family and you wouldn’t be doing any justice to it by making rash design decisions on the fly
- There is a design fee (usually 3% – 5% of your budget), but don’t be fooled if you think you can save money by skipping the design phase – you’ll pay more than that in change orders and the mental stress of designing on the fly
The design-build professional requires an extra layer of organization and structure when it comes to running their business that this type of home builder is not very common in the construction industry, especially around Saskatoon.
The design-build professional requires an extra layer of organization and structure when it comes to running their business that this type of home builder is not very common in the construction industry, especially around Saskatoon.
3: Design-Build Professionals - Your Personal Chef
Finally, the design-build professional – the personal chef of home building. They take your ideas, refine them with expertise, and bring everything together seamlessly. You can taste-test at the beginning while they capture every ingredient and determine what it will cost. Imagine having a team that handles both design and construction under one roof, with a fixed price from the start? No surprises, no finger-pointing. It’s your dream, cooked to perfection, without the mystery sauce.
Design-build professionals are often mistaken to be the same as custom home builders. The key differentiator is that a design-build professional conducts all of the design in-house and before construction even starts.
Pros:
- The designer and builder are one team. You have one point of communication, your design details won’t get missed, and your designer is educated on the costs of construction to ensure you aren’t going to end up with an end product that is 50% more than your budget
- The chances of having any design regrets after moving in is very slim because you’ll already know what your home is going to look like thanks to the 3D tours
- You’ll be given a move-in date that you can trust even prior to construction starting because the schedule can be accurately developed since all of the design details are inputted
- The price you’re quoted will be the price you pay, down to the penny
- You could go on vacation for the entire duration of the build because you won’t be expected to make any decisions since the design was finalized before starting construction
Cons:
- Time. Design doesn’t happen overnight. After all, a custom home is meant to last through generations of your family and you wouldn’t be doing any justice to it by making rash design decisions on the fly
- There is a design fee (usually 3% – 5% of your budget), but don’t be fooled if you think you can save money by skipping the design phase – you’ll pay more than that in change orders and the mental stress of designing on the fly
The design-build professional requires an extra layer of organization and structure when it comes to running their business, making this type of home builder not very common in the construction industry, especially around Saskatoon.
Not all builders are created equal, and picking the right one is like picking the right partner – it’s got to fit your vision, your needs, and your budget.
If you’ve been thinking about your own custom home and trying to narrow down a builder, determine whether they are a spec home builder, custom home builder, or design-build professional, and whether you value the pros and can handle the cons in which they each come with.
Ready to start your home building journey on the right foot? For more tips on choosing the right builder, download our free e-book today, ‘The Ultimate Guide to Choosing a Home Builder’ so you don’t leave it to chance on whether you have a memorable (for the good) home building experience.
Click on the link below to download the The Ultimate Guide to Choosing a Home Builder now.
