Home Builder Myths & Truths
Myth – I will get more personal attention with a builder who only builds 2 or 3 homes a year.
Truth – This myth is still heavily sold today. The truth is that the back office of a home building business requires intense attention from the owner. It is impossible for a builder to manage a project and their business correctly at the same time without specializing. Effective project management ensures better oversight for today’s complicated custom builds. FBG has multiple layers of oversight per house to maximize the amount of “touches” per day. In this way the business, and the home, are always running on all cylinders.
Myth – A small builder requires a smaller fee because they don’t have as much overhead.
Truth – It’s hard to believe that anybody would try to sell this anymore. Smaller builders need to charge MORE expenses directly to the client’s job (and the client), and then a fee on top of that. The client should require from their builder, controlled costs, transparent accounting of the job, a fair fee.
Myth – The builder who builds 2 to 3 homes a year can get me better prices on my materials and labor
Truth – There are only three things that garner a builder great pricing on materials, labor and services: dedication to managing costs, long standing relationships with suppliers that have been paid on time religiously, and volume. Any other techniques will be done at what we at FBG call “builder retail”, or just regular “builder price” In order to attain immediate value for any new build, the client must hire a builder that is dedicated to driving their costs further DOWN, every minute of every day. Otherwise, the builder is just taking orders.
Myth – Real work happens in a client walk.
Truth – Client walks will always be important to a custom build, mostly for information transfer and new directives. However, a weekly walk is not enough interaction between the Builder and the Client. Due to this, FBG employs building software that gives both parties the ability to communicate on the specifics of the home at any time, and ensures rapid response. The real impact on the job, price AND design, happens during the planning phase with the client, and the builder’s interaction with their contractors on pricing and construction. Much of this dedication is about the business of building, and not client services.
Myth - A smaller builder will build my home faster because he has fewer jobs on the books
Truth – Permitting and construction for custom homes is complicated and only getting more so. Builders with competency to design and permit in many areas will have a system in place to expedite the process of permitting. Construction is more than just calling a trade contractor. Constant repeated work and oversight is the key to getting the job done correctly and quickly. There is always a cost to delay a job. FBG has the diligence and experience to minimize that cost.
Myth - Financial stability of the builder is the builder’s problem, not the buyers
Truth – Just the opposite. When a buyer makes a deposit with the builder, they are taking an unsecured position in that builder’s company. If that builder gets in financial trouble, that deposit, as well as drawn funds, are GONE. Following that, they are left with a major delay, and a new deposit to make on a new builder! As painful as it is, the client MUST do their due diligence to make sure their builder has the financial track record required to GET THE JOB DONE, not just to get the job started.
To work with a reliable home builder who will give you truths, not myths, contact Frankel Building Group.