When a new home buyer first meets with me, nearly without fail, one of the first questions they ask is "what's your price per square foot?" As a home builder this question makes me cringe.  Its not because I'm afraid to answer it, but because I know just how unreliable that number can be when assessing home builders. 

Comparing home builders based on price per square foot can be deceiving and lead to important factors being overlooked when making a decision about building a home. While price per square foot is a common metric used by home builders and home buyers alike, it is important to understand its limitations and the potential downsides of relying on it as the sole factor in making a home building decision.

Quality of Materials & Labor

I've heard it said before, asking about the cost of a home per square foot is similar to asking how much a car costs per pound.  A high-end sports car will have a drastically different number than, say, an entry-level truck. It's not to say one is better than the other, but that the comparison tool being used is flawed. 

One of the main issues with using price per square foot as a comparison tool is that it does not take into account the quality of materials used or the level of workmanship that goes into building the home. A home builder may offer a lower price per square foot, but the materials used and the workmanship may be of lower quality, leading to potential issues and costly repairs down the line.

Included vs Upgraded Home Features

Another limitation of using price per square foot is that it does not take into account the cost of additional features or upgrades. A home builder may offer a lower price per square foot, but may not include certain upgrades or features that you desire, such as a quartz countertops or high-end appliances, which can significantly increase the overall cost of the home.

Each home builder will include (or omit) different home features, because no two builders are the same and there is no standard for what should or should not be included. This is why it is paramount that the home buyer knows exactly what is included in order to make a true comparison.

Experience & Reputation of the Builder

Finally, it is important to consider the experience and reputation of the home builder when making a decision. A home builder with a long history of high-quality workmanship and satisfied customers may be worth paying a bit more for, compared to a home builder offering a lower price per square foot but with a less established reputation.

A Comprehensive Approach is Best

While price per square foot can be a useful metric when comparing home builders, it is important to consider all of the factors that go into building a home, including the quality of materials, workmanship, additional features, and the experience and reputation of the home builder. By taking a comprehensive approach and considering all of these factors, you can make an informed decision about building your dream home.