Is Builder-Grade a Bad Thing?
Builder-grade home features offer a solution for many buyers—but they come with benefits and downsides, like any construction.
If you’re looking to purchase a new home or build your own, you’ve likely come across the term builder-grade in your research and noticed it has a certain connotation.
“Builder-grade features have historically received a bad reputation,” says Christa Kenin, real estate agent at Douglas Elliman. “We immediately think of small tiles, vinyl tubs, and thin-paneled cabinets. However, these days builder-grade features can be a positive thing and an opportunity for buyers.”
Meet the Experts
Christa Kenin is a real estate agent with Douglas Elliman Company.
Bryson Taggart is a licensed Realtor and agent partner at Opendoor.
Matt Brady with Northwest Home Team has worked as a Realtor for more than 20 years.
Susan Jakubowski is a global advisor with Premier Sotheby’s International Realty.
Jeremy Kamm is an agent at Coldwell Banker Warburg.
Gerard Splendore works as a broker for Coldwell Banker Warburg.
The term builder-grade might refer to a baseline of quality and design for home-building materials, but it also offers a solid option for shoppers looking for a new home that is built to last at a fair price.
Experts say builder-grade homes offer an excellent solution for many buyers and come with benefits and downsides like any other type of construction.
“Builder-grade features exist to get the job done,” says Bryson Taggart, agent partner at Opendoor. “However, they may not be to your personal taste and may not last as long as some higher-end fixtures.”
Builder-Grade Definition
Builder-grade is a term used to define the quality and price of building materials used in a new home.
“Builder-grade is typically another term for base grade,” says Matt Brady of Northwest Home Team. “More often than not, the term is used in production building, such as a large subdivision, where the builder is selling their product at a very competitive price. In order to do so and still be profitable, they use inexpensive materials with limited color choices. This can range from the lumber package used to frame the home, to roofing material, cabinets, flooring, paint, electrical and plumbing fixtures, and so on.”
“Builder-grade generally includes common, somewhat dated granite, low-quality carpet, potentially a low-grade luxury vinyl flooring, chrome, or brushed nickel lighting, limited and somewhat dated choices in tile and cabinets,” says Susan Jakubowski, global advisor, Premier Sotheby’s International Realty. “Higher quality choices are more current looking, and the materials used are better quality, leading to a longer life expectancy.”
Agent Jeremy Kamm of Coldwell Banker Warburg describes builder-grade as “lower but passable quality.”
“Builder-grade refers to the most simplistic of materials,” he says. “For all intents and purposes, it’s the bare minimum in terms of quality and uniqueness.”
Builder-Grade Home Myths
The most common misconception about builder-grade homes and features is that they are somehow of lesser quality than those in custom homes.
“Builder-grade does not imply low quality but less expensive, more ordinary, or less special with fewer features,” says Gerard Splendore, a broker at Coldwell Banker Warburg. “While perfectly acceptable and in new working order, there will be no extras or fancy features.”
Many experts say that while builder-grade features might be less expensive, they aren’t low quality. It’s often the case that custom features, such as unique lighting fixtures or high-end flooring and countertops, are just more expensive.
“Builder-grade is not always low quality and if a buyer is cost-conscious, they can work well for them,” Jakubowski says. “An example would be builder-grade granite is still a great choice since it is highly durable and nice looking.”
Builder-grade homes often start with a price and quality baseline for their finishes, but that doesn’t mean there is a limit to what you can add to your new build.
“On the higher end, some builders give buyers the opportunity to customize their new construction homes by offering a curated selection of finishes,” Kenin says. “Buyers get to pick the marble and tile finishes for their kitchen and bathrooms as well as the color of their wood floors. This builder option feels empowering to buyers since it allows buyers to tailor the space to reflect their taste and style.”
Do Builder-Grade Homes Last?
Brady says when it comes to builder-grade quality, your finishes might look nice on move-in day, but the catch is they might not last as long as higher-end options. Take cabinets, for example.
“Builder-grade cabinets are often made of particle board with a melamine finish,” he says. “They usually won’t have the soft close feature. Over time the cabinets will become worn and may not open or close properly, the screws that hold the doors and drawers may come loose or break altogether.”
He points out that replacing those cabinets could be expensive, and a higher-quality cabinet made of plywood or hardwood can save money and time in the long haul when chosen upfront.
“A standard kitchen can cost as little as $3000 for builder-grade cabinets whereas a modest-quality set of cabinets may cost around $10,000,” Brady says. “Considering the other costs involved, a buyer would be money ahead by upgrading during the construction process if possible.”
Tip
If you’re concerned about the quality of your builder-grade home, focus on the major components, such as the roof, siding, and foundation, and not only on things like cabinets.
“The ‘bones’ of the home are the key to the life expectancy of the home,” he says. “Foundation, quality of the lumber package, high-quality roofing, siding, and paint will keep the home from being exposed to the elements. Interior features such as cabinets, quality plumbing components, doors, trim, and windows will reduce the need for replacement for years to come.”
Taggart says if you’re building a home using builder-grade materials, you’ll want to pay more attention to how those materials and features are installed.
“This can usually be done either before drywall goes up on a new construction or on blue tape day,” he says. “Blue tape day is when you do a final walkthrough of the home and put blue tape on anything you want the builder to fix, such as leaking faucets, scuffed walls, etcetera. From personal experience as a Realtor and new build buyer, it’s fine to have a builder-grade faucet, but if it’s not correctly installed to the dishwasher, that will lead to issues down the line.”
Related: What First-Time Homebuyers Need to Know, According to Real Estate Pros
Pros of Builder-Grade Homes
Builder-grade construction certainly has some perks for those looking to buy a home of this style. Namely, the materials and finishes used are of a quality level that is considered widely accepted.
“A benefit can be that the buyer will not make selections that can be overwhelming for buyers,” Jakubowski says. “A luxury vinyl plank flooring is usually builder-grade, and that product works well due to its durability with pets and young children. Additionally, builder-grade bathroom floors and fixtures can work well for buyers.”
You can also rest assured that your home is fairly priced in the neighborhood and of a similar quality to surrounding homes in a residential area or community.
“I had a buyer use mostly all builder-grade finishes in a track-built neighborhood,” Jakubowski says. “Now the neighborhood is five years old, and if they were to sell the home, they would get approximately the same price per square foot as the other neighbors who may have chosen many upgrades.”
Plus, when it comes to price, builder-grade products are less expensive overall.
“There is a direct correlation between builder-grade finishes and price,” Jakubowski says. “The more builder-grade products, the lower the price. Likewise, the more custom finishes, the higher the price.”
Kenin points out that these homes are often move-in ready, and any renovation projects are more about aesthetics than major repairs or overall quality.
“Builder-grade features can be very attractive to buyers since they provide a baseline of finishes typically in a trend-forward style,” she says. “This is especially appealing to first-time buyers who can enjoy a stylish and completely finished home the day they move in and then take their time later making home improvements to better suit their needs and taste.”
Kenin finds that many buyers like builder-grade homes when they know they only plan to live there temporarily before seeking out a more custom home or one that might require extensive renovations.
Tip
Builder-grade homes allow first-time buyers to enter the market at a fair price and can also be a good option for those looking to purchase a home with less maintenance.
Down the road, a builder-grade home can be upgraded when the buyer can tackle these projects.
“Builder-grade features are likely to be somewhere in any given home, so you shouldn’t necessarily be on the lookout for them in a negative way,” Taggart adds, “but think of them as opportunities to upgrade to your personal style while also bringing more value to the home.”
“More often than not, homes that are predominantly of builder-grade quality are what the buyer can afford,” Brady points out. “First-time home buyers have an avenue to home ownership and are able to remodel as their income increases. I don’t believe there is a drawback as these homes fill an important need in the market.”
Cons of Builder-Grade Homes
While builder-grade homes are of decent quality, they aren’t unique in their overall design, which can be considered a drawback for this style of home.
“When a home is built with builder-grade materials, the next potential buyers may question the quality of the home construction,” Jakubowski says. “Likewise, the home will lack character and modern finishes, so it will appear a bit dated when it is built.”
If you’re looking for a custom home that’s less cookie-cutter, builder-grade might not be your taste.
If you choose to build your home, a trusted agent can help you make decisions about various features and finishes you might want to incorporate.
“I suggest homebuyers choose a good buyer’s agent to represent them with a builder,” Jakubowski adds. “Their agent should be able to point out where it is important to choose an upgraded item versus where they can save with a builder-grade product.”
Related: 100 Years of Real Estate and Homeownership, Through the Pages of BHG
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