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What is a Production Builder?

What is a Production Builder?

Posted by Builder Finance Team Member on June 09 2020

There are several types of builders and builds available on the market today. Understanding the differences between them will clue you in to what type of builder you need on a specific project. This article will highlight what a production builder is, why the job is useful and when it is helpful to utilize this type of builder.

According to ThoughCo.com, "A production home builder builds houses, townhouses, condos, and rental properties on land that is owned by the building firm. Using stock plans, or plans developed by the real estate or building company, the production home builder will construct a large number of homes each year. A home unit will be built, whether or not an individual homeowner, will buy it. Eventually, the homes will be sold to someone. The production home builder works on the notion that "if you build it, they will come."

They may build dozens or even hundreds of homes a year. Sometimes this is in new developments which offer a set of floor plans in new-build homes.

In order to accomplish this goal, they use a set of stock floor plans for each project. The plans can be drawn up by the building firm or a real estate company. When looking at these plans, the production builder already knows how much materials will cost. They know how to structure the home to stay on budget. They are efficient.

Production builders are also flexible. Sometimes those floor plans are semi-customizable, allowing prospective buyers to choose which floor plan they like and make minor changes. They also offer a set of design features for each floor plan which can largely be customizable by the buyer. These customizations include picking carpet color, tile, paint scheme and more. When customers get to pick design features, it makes them feel more in control and creates higher marketability for the project.

So why choose a production builder?

If you’re a developer looking to break ground on a new subdivision which will have 50-100 homes, you need a builder which is not only capable of completing the project, but knows the ins and outs of getting it done efficiently. A production builder has this capability. They have the manpower, the knowledge and the wherewithal to get the job done. And the job will get done within budget, efficiently and with limited to zero delays.

If you’re an investor looking to build a new home for rent, even if it’s on property versus in a development, production builders are still very capable of getting this done. They will have their own stock floor plans to offer you so you don’t have to design your own house. Not everyone is an architect or can see what a product will look like upon completion. This is where a production builder can help. They offer different solutions based on needs and desires, and sometimes can make subtle changes to floor plans to accommodate what you are looking for. As an investor, this takes a good chunk of time away from you having to make specific decisions when building a home. It frees you up to focus on other areas of need while your builder does what he or she does best.

Production building is a useful segment of the construction industry for a variety of reasons. Builders are efficient, stay on budget, complete projects on time and have enough laborers to get the job done.

Topics: Production, Construction, production building, building firm, production builder, stock floor plan, real estate company

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