01.01.07
Production, Custom, and Semi-Custom Homes
Tract or Production Homes
Tract home builders are geared up for high-volume production of standardized homes. Often, these types of builders have certain floorplans that they build, so buyer selection is limited to the homes the builder offers. There may be a few different elevations of each floor plan for the buyers to select, but any other changes must be minor.
The Pro’s of Buying a Tract Home
For those who don’t prefer to buy a home from a blueprint, production home builders often have several model homes for buyers to see in person. This means, they essentially see the finished product before their home is built. Buyers are able to see upgrades to certain features (like countertops, flooring, cabinetry, etc.) before they make choices.
There are times when production builders keep a small inventory of “spec” homes on hand for purchase. So, instead of having to wait for a new home to be constructed from dirt, home buyers may have the opportunity to buy a home that is either completed or at some stage of completion.
The Con’s of Buying a Tract Home
Production home builders are somewhat limited as far as the finished product goes. If a buyer doesn’t care for the selection offered, changes or upgrades beyond the builder offerings aren’t usually possible. Finally, to save money, sometimes these builders will select items that are the least expensive in their category. When this happens, the Buyer may get stuck with substandard ‘parts’ in the home that will inevitably fail over time.
In addition, these builders often buy groups of lots in a neighborhood and the buyers choice is limited to these available lots. This is one way the builder keeps the cost down.
Semi-custom Homes
Home builders who build semi-custom homes provide more choice for the customer by supplementing the qualities of production building with custom building. The basic design of a semi-custom home is usually determined by pre-existing plans that provide a variety of possible changes and alterations. The semi-custom home builder is often more flexible, so the home buyer gets to make changes that wouldn’t be possible when working with a production or tract builder.
The Pro’s of Buying a Semi-custom Home
By starting with a standard plan, the buyers do not have to start with a blank page. They are able to select a plan that includes features that are important to them. From this basic footprint, they can then spend their time working out the changes they want. Many Buyers will also find that many upgrades are automatic (where they would cost more on the base price with a standard production home).
Semi-custom home builders are often more flexible with locations for building. The builders will often have an inventory of building sites to choose from and some will work with land that a Buyer may already own.
When it comes to semi-custom builders, Buyers will normally be working with smaller companies. This means if a Buyer enjoys more personal attention and prefers to deal with fewer people, a smaller semi-custom builder might be a good fit.
The Con’s of Buying a Semi-custom Home
When buying a semi-custom home, Buyers should expect to invest more money into their purchase and spend more time waiting for the changes to be fine-tuned and the house to make it through to completion. Sometimes is a bit slower since construction crews may be unfamiliar with the plans.
Finally, although this isn’t as common as it used to be…smaller semi-custom home builders may not be as established. Buyers need to talk with their real estate agent about how to minimize risk in case the builder goes belly-up in the middle of construction.
Custom Homes
Custom home builders turn out a product that is specialized to the needs of the home buyers. The homes they build are unique and often designed (according to the wishes of the Buyers) from the ground up. Buyers will often have multiple sessions with the builder’s (or their own) architect to determine floorplan, features, characteristics and more.
The Pro’s of Buying a Custom Home
As with semi-custom builders, companies that build custom homes are normally smaller. So, the people that Buyers deal with are few in number and they tend to get even more personalized treatment than with any other type of builder.
Buyers are basically guaranteed a home that is one-of-a-kind. Buyers are extremely involved in every part of the process. It is common for these types of builders to secure unique lots for their homes, but they don’t build spec homes as often as other types of builders. Instead, they may advertise possible home ideas to attract buyers who can then run with their preferences.
The Con’s of Buying a Custom Home
Custom homes are normally one of the most expensive options for home buyers. They often take much longer to build than production homes and the investment is substantial. Even getting to the point where the builder is ready to break ground can take months. Also, mid-construction changes can be extremely costly…so extensive planning is required to prevent unexpected costs.
