Mass builders vs Custom builders

Hi guys,

We're looking to KDRB on an old block. We have several quotes from smaller (recommended from friends/family) and mass builders like Metricon, Plantation etc.

Our aim to have a decent quality modern home (doesn't have to have all the luxuries) that we'd live in for the next 3-5 years and may rent it out in the future.

The price difference is almost 250-300k.

Now I know we can't compare apples with oranges and the custom builders will likely give us something of higher quality and more bespoke to our preferences. However it is a staggering difference in price. Has anyone else gone through this decision recently and what would their advice be?

 

Are you absolutely sure that you are comparing apples with apples?

Do the quotes include site costs and demolition? Landscaping?
Same height walls and fittings and finishes?

Are the volume builder quotes ‘base cost’ meaning you will end up choosing better (i.e. more expensive) carpets, benches, tiles etc) at the design appointment?

How about windows and door sizes - the same?

 

Joynz is correct - builder's have different schedule of finishes and inclusions so you really need to ensure you are getting the same product for the price.

The issue with project builder is that they have a very basic range of products and any upgrades or changes will be quite expensive whereas private builders have a lot more flexibility.

Im not saying one is better than the other but you just need to ensure you are comparing the same thing.

 

It's all about profit.

Custom gives bragging rights and some people will pay more. The profit margins are bigger for trades and builders.

As technology improves building is becoming more shrink wrapped, so I can't image why a project builder is seen as 'less' aren't they using more modern systems? Bigger volumes?

So project builder for me . I do like steel frames though....

 

The other very important consideration is the building site itself. Some difficult sites will require a custom build approach as project builders won't touch it.

 

These are the reasons project builders can be worse than custom in my view - and I have seen all of the issues listed below:

1. A tendency to just plonk a building on a site with little consideration of passive heating and cooling. In many visits to volume builders’ display homes not a single rep has ever asked about the orientation of my site or made any suggestions as to what design would work best with that orientation. (And no consideration of cross flow ventilation in the designs - to reduce the need for air con…)

2. No thought about adding in flexibility - e.g. cavity sliders so huge open plan living areas can be closed off from hallways to avoid losing precious heat in winter - or even just to keep the rest of the house quieter.

3. When higher ceilings are requested, volume builders don’t point out that the window head height and size will remain the same (it’s a cost issue and smaller windows are one of the ways they can meet energy efficiency).

4. Putting a fridge space in a small butler’s pantry - even though a standard fridge would take up most of the space.

5. Terrible finishing (paint drips even in display homes!)

Now, I’m sure that many or even most custom builders are the same - but there are some that aren’t. (To be fair, I saw a custom built duplex where the people installing batts in the walls and ceiling had left huge gaps. That was the insulation company at fault - but the builder should have checked.

No matter who you use, keep an eye on it and get an independent inspection at the required stages

 

Project builders "package" various inclusions and options which can be very cost effective as a cookie cutter approach with ability to personalise with fascades, textures, renders, materials and colours etc. Make sure you know what these are. A $2K change may radically alter the appearance at the street. Some project builders even package a "grand" option with many additions and upgrades for little extra cost for a fixed sum. Once this is chosen the cost is "largely fixed". Understand what that means. DONT change things once you have a contract. Custom builds are notorious for unspecified variations and can be extortionate. Most builders have a showroom to sell you endless changes. Just remember EVERY change has a potential cost impact so try to stick to the base and think of it as buying a new but unchangeable home just like would occur if you bought an established home. Learn to say no . You cant change a existing build so readily.

Our home was like that. We made merely TWO changes.
1. We tiled through the house not just entry and kitchen.
2. Carpet upgrade from crap to decent.
Watch things like plumbing for fridges, depth and with for a fridge etc.
We accepted the standard blinds and light fittings ect and then made changes after we moved in. Slow and steady.
We couldnt even change colours. Their colour consultant had done this.

Do consider site issues. eg Centreing the house on the lot. These days with smaller lots its harder to consider placement anyway other than alighed to the street. A wider garage could be a option ? Where do you prefer taps etc ? Can you move things for a path ? How does this affect landcape ? Almost all project builders will CUT the level even when it seems flat.

Also consider the "finishing costs" eg landscape, paths, driveway etc. And that may need to consider the land developer landscape rules too in some estates. eg The common "no front fence"etc. Or a required brick letterbox or more. Some have specific approved plants and sizes. Some project builders will leave you with soil and others may include or sell a final landscape. With ours we got that. Can you add a sprinkler system ? Its easier at that point. Yes it was basic but we added over time and had a blank canvas to start without mud inside. The SOLE additional we faced costs on moving in was connecting a TV antenna to its prewiring. Oh and adding a number to the letterbox.

Be wary that a display home isnt what they are building. Many display homes have non standard finishes and inclusions such as ceiling heights etc. Almost nothing is how they will hand over yours. Even bench heights may be customised. Dont fear this. Just carefully walk through the inclusions and non-inclusions. Display (sales) staff should be very open and transaparent. They DONT want arguements later. Many people who have never had a new build will tell you horror stories they have "heard about".

• YOU cant have independent inspections during the build. You are locked off site on your own land. A independent inspection after handover may be your sole recourse.
• Consider structural warranty periods. A 25+ period is a great benefit.
• Watch electrical circuits. Most project builders will do the basic and overload switches causing annoying trips later. Consider wiring a extra circuit to the external rear of the house for 3 phase etc Wire it as 32amp cable and switch etc and also a weather proof external on a seperate circuit too. . It leaves loads of option for extra circuits to be pulled through and even a pool / spa etc out the back. Also consider a extra downstairs circuit for power so less load causes trip outs. Its a trivial cost when building vs after. It may allow more double points to be installed too. (eg Prewire for a split system in a rear family / rumpus to later save costs v using ducted)

After handover there is a defects period when inevitable trade defects will be come apparent in every build. On the other hand these stand out as its a prisine property. We had a chipped bathroom tile and a tap that had a throw too short to meet the bath, broken cornice badly patched and a few trivial paint issues. All sorted. On the other had we also had a textured render on all sides and rear that the supervisor didnt like so it was redone with a second coat. And he didnt like the gap on one side of the lot so had the garage made wider with council approval by .5 of a car width extra so its now 2.5 wide with a single opening which was previously 2 x single openings and he hated a element of exposed brick window sills he had re-rendered. This cost us nothing extra. They had pride in what they did so what seemed to be planned was fixed by them as they built. Some project buiders might just build to plan. He also had the plumber switch over recycled and fresh water points to other sides of house as it was more logical.

 

In Victoria you absolutely CAN have independent inspections at each stage of the build.
Usually done by hiring a surveyor who makes an arrangement with the builder for access.

And as the owner you can also arrange to visit too - with the permission of - and under supervision of - the builder or construction manager.

Are you sure this can’t be done in NSW?

 

Thanks Paul. Very informative and thorough. We're going to go with the custom and keep an close eye on the initial contract and all the details you pointed out. Cheers