Custom Homes Versus Inventory Homes

Clients often ask “can you save money when you build a custom home?” After all, a 2X4 costs the same whether you are a custom home builder or a track home builder. In reality though, what effects the price of the home is the design. For instance, when luxury home builder Greg Sommerhof is doing research to build an inventory home, he is going to work on a design that targets a certain price. He understands design, what things cost and he knows how certain aspects vary from home to home.

The difference between Greg designing an inventory home versus building a custom home is that he still has to sell the inventory home. The custom home buyer is going to design something and move into it- end of story. And so there is a lot of decisions the custom home buyer makes that are based on emotion and this can have a really big impact on the cost of the home.  

Greg has built hundreds of houses. His houses have ranged from under $500,000 and as high as $20,000,000, so needless to say he learned a lot along the way. Therefore, Greg can tap into this knowledge and is able to stretch the buyer’s dollars as far as possible and still build an excellent home.

A good example of this “experiential engineering” is the roof of a home. A custom home buyer may work with an architect and they design the roof to have a 12 X 12 pitch. Neither the architect or customer know how big of an impact that this simple decision will have on the cost of the roof. What they may not know is that in addition to having the cost of the roof trusses, you also have to have something called a “piggyback” added. So instead of one piece you need two pieces. This means more material and labor have to be added to the cost of the roof. However, with GSommerhof Luxury Home’s “experiential engineering” they know they can build a 11X12 pitch roof that won’t require the piggyback, and it will save the customer $4500. And no one will even be able to tell the difference. Situations like this go on and on and on throughout the design process and then suddenly the customer is $40,000 over budget and they don’t know why.

When a custom home client wants to design their “dream home” the process is all about their emotions. Also their architect may not be designing with cost savings in mind, rather they may be trying to impress the customer with their cool concepts and in reality they are just doing their job as they are not really required to keep track of the cost.

Contrast this with Greg’s process. He has built hundreds of homes that he can draw experience from and can avoid those cost “gotchas” and still build an awesome home. Also, he has to be able to build a home that he can sell, whereas the custom home buyer is going to build their dream home and move in. Another benefit of an inventory home is that Greg has most likely built that same style inventory home 4 or 5 times and has worked out the kinks. His experience allows the inventory home to have the most value and allows the customer to put their money towards what means the most to them.

GSommerhof Luxury Homes also designs a lot of custom homes from scratch for customers, but they always cost more per square foot than their inventory homes. The custom homes aren’t necessarily better either. But they do cost more per square foot. In some instances, a customer will come to him with plans from an architect and Greg is able to re-work certain aspects of the plan and save the customer money. In some cases he is even able to add back features that the customer didn’t think they could afford.

The bottom line is this, if you are planning on building a custom home you may want to give GSommerhof Luxury Homes a call first. You can checkout some of their outstanding inventory homes that feature “experiential engineering” and this will bring maximum value to your home building experience.

To learn more visit http://www.gsommerhof.com

How to have the best home building experience with your custom builder.

How to have the best home building experience with your custom builder.

The custom home building process is fun and exciting yet can be a complex, overwhelming, and emotional experience. 

Here are a few tips for making your experience easier and the most enjoyable. 

• Know your builder – It is very important to get to know your builder. Treat your first meeting like an interview. Learn about them, their background, their business, and experience. You are going to be working with this person very closely for the next year, it is important to choose carefully and understand their role in the process.

• Some good personality traits to look for in a builder: a good listener, a good communicator, honest, and field experience. Make sure you are actually talking to the builder not just the sales person!

• Think service because ultimately this person is providing you a service. What are your expectations for service during this process? Ask questions that tell you how they provide good customer service. 

• Are they showing a genuine interest in you, your family, and your values? It’s NOT about them, it should be about you!

• Is the builder being up front about how the process works? For instance, let’s say the good, the bad and the ugly! Are they realistic? 

• Be involved! – This is your home and you’re choosing to build, not buy an already completed home. Depending on how custom you want your home, there can be hundreds of choices that need to be made. Have a realistic expectation of the time that it will take to get it done. In addition, all partners should be involved in the process from beginning to end. This can be difficult as the process is long and everyone is busy. From finding a lot, to picking finishes, or approving the budget, everyone will be happier in the end if they stay in the loop from the beginning. 

• Know and understand your budget. Make sure your builder goes over your budget in detail and that you understand what is included in each category or allowance. Ask for pictures of what is included and if you don’t like it, tell him. And then ask for a price for what you do like. Try to eliminate the surprises and have a realistic number from the beginning. 

• Have discipline – The happiest customers are those that stay closest to their original budget. This might be the hardest one because it puts our emotional side against our logical/realistic side!  Try to keep your emotions in check. We know that a $6,000 dining room chandler is perfect, and this is the last house you will ever build, but be realistic. How high is it on the priority list? Can it be upgraded down the road? How important is it really going to be in 10 years? We say have a lot of discipline or a big contingency!!

• Communication – It is important to have open communication with your team. That includes you, your partner, your builder, your designer, and anyone else involved in the process. Learn early the best way to communicate with your builder and stick to it. Remember, many builders are running multiple jobs or spend most of their time in the field. Try to write down and save up your non-urgent, important items and communicate them all together. Realistically you should be talking to your builder 1-2 times per week throughout the process.

• Always keep your eye on the ball – Stephen Covey said “start with the end in mind,” and that is the “ability to envision in your mind what you cannot see with your eyes.” This does a great job of summing up the home building process. Remember what your goal is: to have a beautiful, unique, new home that you designed and helped build! It is a very rewarding process to see a home come together in a place, where just weeks before, was only earth and trees. 

• Enjoy the process and the outcome!

Learn more about our company at www.gsommerhof.com

Welcome to GSommerhof Luxury Homes and Additions

As St. Louis's premier builder of luxury custom homes, G Sommerhof Homes and Additions believes in constructing unique, high quality homes to fit your lifestyle. We're mindful of the luxurious details important to you. We load your building experience with personal attention and superior customer service. Then, we couple your lifestyle needs with our passion for carpentry and commitment to craftsmanship to turn an empty lot into your perfect dream home. 

We have the same goals - a quality, high performance home meshed with your budget, lifestyle, personality and dreams. And, we do it with simplicity. We promise to inspect, expect, and manage your project to perfection every day, every minute to give you a finished home that will pamper, indulge and surround you with luxurious comfort. 

We invite you to browse our gallery of distinguished St. Louis homes. These satisfied, prestigious homeowners chose G. Sommerhof Homes as their custom home builder. As you browse and dream, imagine a hand carved front door greeting you with boldness and warmth and a dramatic foyer to greet your friends. From coffered ceilings to the premium sized master bath to the showroom garage floors, you’re glad to be home. 

Join our list of discriminating homeowners. Let us be your dream ambassador. After all, building dream homes is our business.

Learn more by visiting www.gsommerhof.com.