Custom Home vs. Fixed Price Home: Which Is Better?

These two construction pricing models have plenty of differences. So, which one is right for you?

When you begin the process of planning to build a home, you’re likely going to come across the terms “custom home” and “fixed price home” at some point. This leaves a choice to be made. Custom home vs. fixed price home?

When discussing custom homes, you may also hear the term “cost plus.” When discussing fixed price homes, you may hear the term “spec home.” Home builders in Missouri use both models.

Both are popular pricing models when it comes to building a new house. However, one is probably better for your unique circumstances than the other. So, keep reading as we weigh the pros and cons: custom home vs. fixed price home.

Custom Home vs. Fixed Price Home: Custom Homes

First up, let’s consider custom homes. As the name suggests, the sky’s the limit when it comes to turning your new home into whatever you want it to be using a custom home model.

If you have a specific design in mind, this is likely the model for you. You’ll be able to make your dream home a reality – exactly as you envision it. In addition, you’ll have the opportunity to make upgrades and changes throughout the construction process. This means custom builders will include you in most, if not all, of the decisions along the way for custom home builds.

So, what’s the downside? When building a custom home, you won’t know exactly how much the cost of your home will be until the project is complete. However, you’ll go in with a pretty good estimate that will help make things easier on the budget.

Pro Tip: Phillips Custom Homes uses a custom home model, which means you can build the house of your dreams to a tee. Additionally, they’ll update you about how much everything is costing throughout the whole construction process.

Custom Home vs. Fixed Price Home: Fixed Price Homes

Next, let’s continue our custom home vs. fixed price home debate and take a look at fixed price homes. Many of the decisions involved in designing fixed price home builds are made by the builder. So, you’ll have significantly less involvement in how your home turns out. This means fewer decisions for you and, likely, less time to wait before you get to move in.

In addition, you’ll know the exact price of your home going into the process. So, the primary downfall here is that you may have to make sacrifices and settle for a home that doesn’t have everything you want.

Pro Tip: Be sure to check with your local construction company of choice to see which model they use, or if they offer both options. Oftentimes, local home builders or local contractors will stick to one model or the other.

Custom Home vs. Fixed Price Home: The Verdict

At the end of the day, it all comes down to your specific needs.

Are you set on a certain home design or certain finishes? Do you have some time before you’re needing to move? Do you want a home that’s totally unlike any you’ve seen before? Then, a custom home is probably ideal for you.

Pro Tip: Are you wondering, “Are custom builds cheaper?” The overall cost ultimately depends on what you are wanting. You will be the one calling the shots on homebuilding decisions throughout the process. However, custom builds are often pricier because builders can't buy products in bulk, since everything is custom to you. The next step is to reach out to custom home builders in Southwest Missouri to craft a plan that fits your budget.

Are you needing to move in quickly? Do you need total certainty upfront when it comes to your budget? Are you willing to be flexible with the way your home turns out? Then, a fixed price home might be better for you.

Custom Home vs. Fixed Price Home

To wrap up, both custom homes and fixed price homes have pros and cons.

To make your decision, we suggest making a list of your non-negotiables (the things you absolutely can’t do without when it comes to building your new home) and your negotiables (the things you’re flexible on when it comes to building your new home). Then, decide which model fits these factors best.

Finally, search “home builders near me” or “contractors near me” to begin your research!

Pro Tip: Need help choosing between the many Southwest Missouri home builders? Whether you’re looking for Springfield, MO home builders or builders who serve one of the surrounding cities like Ozark, Sparta, Highlandville, or Ava, there are many choices. Follow our handy guide to help you make this difficult decision.

If you find that you can’t settle for anything less than a custom home, start the process today by filling out the Phillips Custom Homes interest form.