When searching for the right builder for your future home, there are many options. It’s important to do your homework and have your agent ensure you are asking the right questions. Here’s a brief overview of some key differences to be aware of.

Small builders

• Flexibility of terms, conditions, and pricing
• Higher profit margins
• May raise prices to offset volume
• More vulnerable to downturns
• Higher risk for buyers

Large builders

• Little or no price negotiation
• Adhere to a business and build formula—less flexibility for buyers
• Tight profit margins
• Financial strength to withstand a down market
• Lower risk for buyers

Spec and production builders

• Build the same floor plan repeatedly
• Little flexibility for custom features
• Tight schedules and narrow profit margins
• Buyers need to monitor quality control
• Pressure to sell quickly to free up capital
• Try to sell the completed homes first
• Accelerated build times

Custom builders

• High profit margins may allow flexibility in customizations, pricing, and terms
• Extended design and build time
• Modifications increase the price
• More conscientious about quality control
• Many are small operations
• Buyers need to make sure the builder can finish the job