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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 so pleased with our new addition & remodeling. We enjoyed being back here this summer. We have gotten many compliments. We’d be more than happy to show what you have done if you have anyone who wants to see it.”
{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.
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