What is a Home Builder Business?


Most people think that there is no difference between “Home Builder Company” and “Contractor”. Actually, they are absolutely different. Contractors do only construction, the rest—design, applying for building permit, applying for housing loan, hiring an engineer and an architect to supervise the construction and purchasing construction materials-is done by the owner.

For “Home Builder Company” or “Home Builder center” ,a standard one, will provide  both before and after sales service. There are house designs that can be modified to meet the customers’ needs. There are an engineer and an architect to give customers advice. The company will ask for building permit on behalf of the customer and also housing loan—if needed. The company also has an engineer to supervise every step of construction until completed.

Furthermore, there will be a warranty for the house after handed over to the customer. Every step of construction is done by different specialist for each type of work—piling work, foundation, roofing, masonry, floor and wall tiling, plumbing, wiring or painting are done by different specialist staff.

If look back to the home builder business for the past 10-15 years, entrepreneurs in the business called “ Home Builder Company ”or “Home Builder center” shared the owner built market.(Owner built refers to the house the owner manage the steps of construction himself, not in a housing development project.)Now more entrepreneurs –“Professional Home Builder”, ”Local Contractor”, and “Amateur Home Builder—enter the market. Total market value rise
 from 2-3 thousand million in the past to ten thousand million baht now and tend to soar up in the future.
 

Holsitic market Image and Competition

In the year 2012-2017 it was assessed that the total value of owner built house was around one hundred thousand million baht with sixty to eighty units built and the builder companies shared only around fifteen million baht of the market. Currently, more medium and large companies enter the market and take more market share. This makes original builder entrepreneurs have to improve their potentiality to compete in the market.
 





 

In the year 2012-2017 it was assessed that the total value of owner built house was around one hundred thousand million baht with sixty to eighty units built and the builder companies shared only around fifteen million baht of the market. Currently, more medium and large companies enter the market and take more market share. This makes original builder entrepreneurs have to improve their potentiality to compete in the market.

To face with large companies who are financially stronger, superior working process and better reputation brand, the original builders have to adjust themselves to be accepted by the consumers.
 


However, leader builder companies try to show the strength they have to be a leader in their target market. They position themselves in the segment they are exert in—prefabrication structure, energy saving house, upcountry builder or luxury house builder etc. They try to build their brands to be memorized by their customers. They compete by cutting price but try to respond to the needs of the customers in their segments. The  small entrepreneurs or the new comers, on the contrary, try to compete by cutting price because they have no experience or completed work or accountability to compete with the leading building builders.