Truth Behind What A Custom Builder Actually Costs! - The Builders Edge

It's a bit of misconception out there that people seem to think going to a custom design building company, it's going to cost you more money. And it could be further from the truth. Project building companies that they call silver, gold, platinum, that are supposedly more superior. That house that you picked off the plan there being built 100 times before.

Where does that perception come from? Is it in the word custom?

Don't get me wrong, going into custom still can cost, but you can still customize a brand new home and still make it very affordable and functional at the same time.

Norm, are custom home builders actually more expensive?

Look, it's a bit of misconception out there that people seem to think that going to a custom design building company, it's going to cost you more money, you know, to build. And it couldn't be further from the truth, you know, that. It's not like I've had multiple customers, you know, in the past that have built and then, you know, then they're built again and come to us. And I've actually had customers that have, you know, engaged us and you know, we've obviously tended to project along with other, you know, project building companies there and we've had these customers come back to us and, and tell us firsthand that they could see how competitive that we actually are with, you know, the overall costing of their project, but also could see that what we allow in our actual homes is standard, is far and beyond what these other project building companies allow for, that they call, you know, silver, gold, Platinum, you know, that are supposedly more superior. So, you know, it's definitely a huge misconception thinking that, you know, by going to a custom design builder, it's going to cost you more money to build your new home. You know, if you're seriously going to be building, you're going to have to get plans and specifications and that drawn up either way. Now, by doing that with a project builder or a custom design building company there, you're still going to have that outlier in that cost. You know, the difference there in working between the two is that a custom design building company, like a builder there with their skill sets, are going to be able to help you digest all those little things that go on into your home. They're willing to and prepared to spend that extra time with you to digest those important aspects of the home and to make sure that what you're actually wanting comes to fruition. Whereas you're going to get a high volume builder there that isn't going to have those skill sets. A lot of times it'll just be a salesperson, you know, guiding you through that process. So you're not even dealing directly with the builder, you know, so unfortunately for them, they don't have the ability nor the knowledge to, to be able to guide you on the right path.

But where do you think that perception comes from? Like, where does that perception come from? Is it in the word custom?

Look, I think the perception definitely is in custom. You know, like custom, you know, is exactly that, completely custom designed to suit what you're specifically wanting, you know. And you know, don't get me wrong, going into custom still can cost, but, but you can still customize a brand new home and still make it very affordable and functional at the same time, you know, so it's really going to come down to how you're communicating with your builder and then sticking to the perimeters that user set out.

Do you have any stories that you can share on that?

Look, I actually have had customers there that have, you know, clearly wanted to build with us, you know, but they've obviously got budgets they need to work within and you know, we'd be able to sort of sit down with them and achieve their desired results. And you know that they've had other people, other project builders tender to the same project and come back more expensive than what we are, you know, and for that to be the case on numerous occasions there, it's proof into the processes that we take. You know, we're really governed to how far the customer wants to go. You know, it's my job to keep the customer on track and within their scope and their budget there. It's not going to end up good for anybody if things aren't within those, you know, equal perimeters. That's been set out in the early stages of the preliminary agreement.

So, so what do you say to customers who come to you and may they still perhaps have that perception? What's your sort, game plan or strategy to addressing that type of customer?

Look, there's no game plan or strategy, you know, in addressing that. They're like, we are what we are. You know, we are always going to deliver the best home we possibly can for, for the best value of money that we possibly can. We're not here to do the wrong thing by anyone. Like my name is on the business. You know, we're very accountable for that. There's. I'm born and bred and as local as it gets in our community there, and I'm very proud of that aspect. But you know, for me I'm not in business to be doing the wrong thing by people. And you know, it gets, hopefully it comes through with the communications and the transparency that we can, you know, all established together that we're on the same journey as them is to create them a beautiful home, the home that they deserve.

Did do you find that all people actually want custom or, or do they need custom? Like is it is a set cookie cutter kind of plan that might be the go for some families.

Look 100, you know, the, the project builders and the cookie cutters of the style stuff there's definitely very appealing and accommodating to some people because some people don't want the hassle or want to invest the time themselves into that. But you know, if you truly want to have input on your home and you're, you're truly wanting to focus on all those little details there and you know, future proof your home a custom design building company are going to be a much better fit than a general ABC construction mob that is just going to be cookie cutting things out and replicating that same thing. That house that you picked off the plan there, it's been built 100 times before. You know, it's not going to be unique or individualized in itself.

So that, that to me sounds like two different customers, right?

Oh, 100% like the, you know, definitely different people out there for, you know, different things. But if they're wanting the best home they possibly can, they need to be finding a custom building company that are going to spend that time with them, you know, so you can still build an economical, affordable home through a custom builder.

Let's talk about the material cost. Like how does the material cost and quality of that material impact the cost differences on a project?

Look, material cost, you know, chalk and cheese, completely different from each other like that. They can be really, really expensive and they can be very, very cheap. And unfortunately, you'll find, you know, your higher volume builders would tend to sort of opt and lead with the lower entry sort of stuff. And people don't know what they don't know and they think they're getting a different product to what it actually is, you know, and then when they realize once they've already signed contracts and gotten too far through things that they're looking at changing that and then it becomes a lot more of an expensive option for them down the line.

So they end up paying more.

They unfortunately end up paying more.

Yeah, yeah. So, so what sort of final thoughts would you give to people who are looking to make the right decision in this game, they're potentially, they can see the ABC style builder versus a custom home builder. They might not be sure which one they want to choose or go with. What would you say to them?

Look, it's a matter of when you're trying to decide on the builder or if you go with a high volume builder or a, you know, custom design building company, there you really got to have a conversation, you know, with them, you know, do your research on the, you know, builders of choice. You're not going to be comparing things equally if you're going, you know, high volume to a customer. You know, it's like comparing a RAV4 to, you know, a toy Land Cruiser. Like it's just two different things. But, you know, at least start with the conversation and see if they are a good fit to begin with and then start taking that next step into, you know, doing your plans and specifications there. But if you're working with a custom design building company, you can still take their plans to a high volume project builder. Asking the question the other way with a high volume builder, will they allow you to take their plans to a custom builder? Generally, no. And the reason they don't allow that is because they're scared of the competition and the truth, that's actually really out there.

What, what would be some of the common pitfalls that these homeowners would fall into at this point?

Look, the biggest pitfall they all fall into is they struggle in comparing things equally. You know, and if we're unable to compare things equally, unfortunately we end up going back to something we can work on and that is price. You know, so they'll just go for what looks right and seems appealing, but unfortunately it doesn't always end up being exactly the right outcome for them in the big and, you know, the, the overall aspect of things.

Yeah, love it. That's, that's a lot of insight and wisdom right there, Norm. Thanks for that.

No problem at all.

Before you go, one more question, mate, from the get to know your Norm jar.

Let's hope you get a good.

All right, here we go.

Okay, this is good. Norm, what's the best piece of advice you've ever received that changed your perspective on life?

The best piece of advice.

I would say the best advice of always, you know, followed, which has been given to me, is, you know, you.

Really need to value your family and friends and the close associates around you. You know, they really are your rocks and pillars of what makes you. So I think, yeah, holding them close and doing the right thing is something that I'd highly recommend.

Love that.

Perfect.

Thank you.

No, no problem at all.