Cost

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New Home and Remodel Baseline prices

What makes one Home builder more Expensive than the next?

When we pay for a product or service, how expensive or affordable the product or service is can influence our purchasing decision. What does it mean to seek affordability? It means you are human. It is human nature to look for the most superior product or service at the best possible price. Going with the cheapest option isn’t always a bad thing. Depending on your situation, it may be the best thing to do.

Let’s say you just bought a home to fix up and resell. Return on investment will surely be top of mind. You will want to put the least amount of money in to get the most cash out. In this case, the best option may be to find the most affordable contractor or doing the work yourself.

Nowadays, no matter what you are buying, there will be a broad spectrum of costs. So when looking to build a new home or do a remodel, it should come as no surprise that this is also the case.

As a consumer, it is of high importance that you evaluate what you are looking for in a home builder. Are you looking for affordability? Quality products and craftsmanship? Custom options? Energy consciousness? In-house design services? A dedicated team with many years of experience? A professional company with clear transparent systems and processes? An employee-focused company? A safety-focused company? A great customer experience?

Many of these factors will directly affect the cost of the homebuilder. It is not uncommon for consumers to want all of these attributes in one. The reality is, the more a company has to offer, the more the cost goes up. It is challenging to have affordability, along with everything else. It would be best if you prioritized what you are looking for in a company and then find the company that is the best fit for you.

Another reason some contractors are more expensive than others is profit. There is one big common denominator between businesses that have been around for many years, and that is, they all plan on having a financial gain. Some contractors do not figure profit into their prices. They hope that after all of the employees have been paid; there will be enough profit to stay in business. That is one of the many reasons that small businesses do not last more than a year. (An estimated 90% of new startups fail)

A contractor’s labor cost plays a huge part in the expense of building a home or doing any home project, for that matter. There can also be a significant disparity in labor costs from one outfit to the next. For instance, a company with high turnover rates never ends up paying very high wages; therefore, its labor cost is low.

Suppose a builder has an unmatched guideline of conduct, professionalism, and artistry. In this case, wages will inevitably correlate with compensating for a higher standard of conduct. Also, skilled artisans are hard to come by, so paying them enough is necessary to ensure that they do not move on. The higher the ratio of skilled carpenters to apprentice carpenters will also drastically affect a company’s payroll. The more skilled carpenters a company has, the more the labor cost goes up.

How much you are willing to spend on a new home or remodel project is unique to every individual. It all comes down to what you value or what you are looking to achieve. Some people might sacrifice quality to achieve affordability. Some might pay more for energy efficiency or quality artistry, and superior materials.

If you would like to learn more about SQ FT price and how it is obtained check out our blog on SQ FT Price here!

Recent Projects

Design-Build New Home

Hartley Estates

Duluth, MN

Design-Build New Home

Upper LakeSide

Duluth, MN

Testimonials
{We, Joyce and Robert, are writing at this time to say a special THANK YOU to each of you for the construction work you have provided for us. We are enjoying our home more than we could have imagined when the plan for change and renewal in our house was put in place. Time goes, that was in 1999. So, thank you, Bruckelmyers, for your great piece of work on our behalf. Further, thank you for your personal regard for us and your genuine concern that our construction plans be fulfilled with the finest of quality in both workmanship and in materials used.
{“Some sixteen months ago when we first started thinking about building our third new home, we were a bit nervous about tackling a 6,000 square foot project. We had experienced less than favorable results with the two different contractors we had used in 1977 and 1990. We asked many couples who they would recommend, and the Bruckelmyer name came up several times. Realtors, lenders, and homeowners all urged us to meet with you. After our first meeting, Cheryl was convinced she wanted to hire your firm. Being the skeptical person I am, I felt I needed to get proposals. After obtaining proposals from other contractors, we asked to visit with former clients of each builder to get their feedback. Every Bruckelmyer homeowner sang your praises. This was very comforting and made us confident that we would be pleased with choosing your firm. Two of the three Bruckelmyer homeowners stated emphatically that we really didn’t need to get bids. We would be better off just hiring Bruckelmyer Brothers to do the work and not worry about price. (As it turned out your firm offered the best value of any of the firms we sought bids from.) Now that you have completed our new home, I just can’t tell you how thrilled we are with the superb job you did for us. The words that come to mind when describing your firm and your subcontractors are: talented, knowledgeable, honest, hard-working, reliable, and humble. The first thing that surprised me was that your crews showed up every day, all day, on time. The job site was far cleaner than any builder we’ve used in the past and your workers were pleasant, polite, and accommodating. The quality of work, from the masons, framers, electricians, plumbers, sheet rockers, painters, and finishing carpenters was uniformly great. No one ever cut corners, no one ever complained about the many change orders we requested, and everyone on the job-site was a pleasure to work with. As you know I decided along the way to hire out a very small portion of the work to certain sub-contractors. For each portion I decided to tackle on my own, I ended up with less than stellar results. In every case, I should have used the folks you recommended. Every sub-contractor that you used performed with the same high quality that we hoped for. I learned a valuable lesson, and that was to let the general contractor be responsible for the entire project. I must also mention that having your firm make all of our cabinetry was one of the smartest moves we made. The craftsmanship was awesome. Cheryl and I would be most pleased to show any prospective client our beautiful new home. Please call us at any time for a showing. We both want to thank you again for the terrific job you did for us. Should we ever decide to build again, we’ll make only one call, and that’s to Bruckelmyer Brothers!!”
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