Most large builders carry a significant overhead which is passed along to you the client. These can include model home, sales staff, design staff, decorators, superintendents, administrative staff, etc. These are items included before the profit margin is built in.
On average larger builders administrative and overhead cost can range between 10 and 16 percent. For a $300,000 that is $30,000 to $48,000 just to cover their overhead. Remember, you are the one paying for that overhead! In addition, many are using superintendents new to the business and they may be limited on their knowledge of building a custom home.
How does a larger builder compete and keep their pricing competitive? They may tell you they can save on materials cost. There is a grain of truth to this, but a very small grain.
Savings for lumber can be up to 2.5% which can equate to about a $1000 to $3000 savings depending on the size of the house. Windows can be about a $350 savings while doors can be a 5% savings or about $500 (provided they are using the same windows and doors). Other ways they cut cost is by using cheaper, less efficient or cutting back on the materials in the home. Also, they can be using the cheapest subcontractors they can find.
With a personalized smaller builder, you decide what will go into the home getting exactly what you want and truly building the home of your dreams.
Would you like to build a high-quality home without having to pay the huge overheads? Maybe you would like to save on some of the materials and be very price sensitive? Would you like to build a super high efficiency house with someone that understands the science involved and can help you steer away from the hazards of not building it properly?
Casa Sereno Homes is here to help build and design your dream home.