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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

{“We are very pleased with your work, which exceeded our expectations. Your reputation for quality and integrity is deserved. The process from start to finish was well planned and followed, and all the usual construction issues were well managed. Changes were implemented with ease and the cost well explained. If we ever had to build again, we would use Bruckelmyer Brothers Construction and we will certainly recommend you.” Best Wishes
{“The English language needs to create a word stronger than “thank you”, as I feel those two words are not enough to represent our gratitude. I remember Ed saying that choosing a contractor was like a marriage; I now realize how true that statement is. As with any project, there were ups and downs but through it all, the thing that resonated with us the most was your honesty, humbleness, and sincerity. The fact that you allowed us to be vocal without passing judgment about our wants, needs, and concerns was comforting. The process took us further out of our comfort zone than we ever could have anticipated and you both did an excellent job of reassuring us when necessary. Your customer service is second to none. John and I have a 48-hour rule; if someone doesn’t respond in 48 hours we will be contacting him/her again. We NEVER had to do this through the entire year and a half process with you. The majority of the time you answered our emails within hours if not minutes. I cannot tell you how grateful we are for that fact. It helped us keep our sanity and probably saved me from some tearful, sleepless nights worrying over something that was really nothing. The craftsmanship of your crews is superb. Their attention to detail is astounding. It’s the smallest details such as the trim under the treads of the stairs or the 45-degree miter on the deck posts that make a job look polished rather than just finished. The coffered ceiling in the kitchen, the beams in the great room and office, and all of the cabinetry work is absolutely beautiful. We get compliments each time someone comes to the house. We also appreciate the little things like Dan hanging the basketball hoop and placing a stop behind the refrigerator so it doesn’t go back too far. Again, thank you for your service and continued communication. Please know you are more than welcome to stop by and see the “finished”/”staged”/”furnished” look of the home at any time; we’d be happy to show you around. (Twin toddlers give really good tours!) Best wishes for the future!”
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