How Do Hard Costs Affect Building a Custom Home?

How Do Hard Costs Affect Building a Custom Home?

April 17, 2017 | No Comments


Building a custom home comes with a price. Nonetheless, for every home, there are hard costs that go with creating it. In a restaurant, items like ingredients for food, plates, the building, furniture, glassware/cutleries, and employees are all hard costs to run the business which dictate the prices charged. When building a custom home, labor, materials, landscaping, contingency, change orders, and overhead are hard costs. These costs have a direct effect on the final price of a home because they dictate the time and supplies required for project completion.  Careful planning of these hard costs will affect the bottom line.

Having a well thought out plan it will make building a custom home faster, and the project to move smoothly. When not planned, even simple items can add up to significant expenses.  These costs happen when the owner remembers a feature they need to add which were not included in the initial plan. For example, the owner wants to add a TV outlet when the job is at the finishing stage. This seemingly simple request now involves buying more materials and more labor hours (cutting into a wall, wall repair, & painting).  These types of last minute changes increase the cost of building a custom home. That is why Grayson Homes makes sure that the client’s wants and needs are reviewed during the planning and designing phases. They love to get all their materials ready so that it won’t affect their budgeted cost and time of delivery.

These hard costs are presented to the clients in the form of cost per square foot.  This figure gives the customer a direct way to compare costs with other builders.   But does a higher price per square foot always mean better quality?   The short answer is no. Grayson Homes believes in being in control of their building cost by sourcing for quality products at a lower price, giving their workers proper compensation,  paying on time, etc.   They have complete control of their overhead costs and never miss a delivery date.

Custom Home Builders fall into three categories: cheap,  competitive, and expensive


This class of service falls in the lowest price range when building a home.  Many builders think that by making their service cheaper than competitors, they will have an edge, but it doesn’t work that way.  Most time the quality of service in this category matches the price – cheap.


Grayson Homes falls into this category of custom builders. They offer quality products and service at a reasonable price.  They don’t cut corners to save money, they negotiate better prices and work with an efficiency which results in lower prices.


These companies often set prices based on years of existence and name recognition. Their custom home building is not necessarily better than the competitive service category. They sell based on an area where they have built for many years.

For more information, contact Grayson Homes at 919-578-6222.

Mike Poupard