Home Contractors vs Developers

“What do you do for living?”

“I am a home builder / contractor.

“Cool! By the way, I have a land in xxx <somewhere> which I want to sell. Do you want to see it?”

This kind of conversation is happening all the time. It seems that public perceived contractors as a person who buy land or old buildings, construct it, and sell it for high price.

Now, let’s refer to the dictionary.

Based on Oxford Dictionary online, the word Contractors means:

<noun>A person or firm that undertakes a contract to provide materials or labor to perform a service or do a job

Developers rarely create this, while home contractors usually provide this kind of service.

On the case of Home Contractor, a contractor undertakes a contract to provide materials and labor to build a home. So do they wrong all this time? You must met people who claims themselves as contractors who buying land. In that case, they had a wrong terms. They should called themselves Developers:  

<noun>A person or thing that develops something: e.g. a property developer, software developers

On normal cases, developer only buy the land to be developed and then sell it to customers. They hired contractors to do the construction things.

However, some developers do the construction by themselves. These type of developers usually have a contractors background (i.e. contractors which save enough capital to start developers business OR contractors which taking risk going into debt to start developers business)

So, which one is better? buying land from developers which hire contractors or developers which doubles as contractors?

The answer to that is to depend on why you want to buy.

So if you want to buy a house or apartment for investment (i.e. for rent or capital gain), all you need to see is the reputation of developers, in this case the deliverable promised in term of time (on time or delay) and quality control. Also how do they react to customer complaints after sales (i.e. their response to leakages and cracks).

And how if you want to build a dream home for you to live in? 

In our book and previous post, we stated that if you intend to own a  dream homes you should hire the specialised Home Builder and make it from scratch because your home should be personalised to match you and your family lifestyle.

For additional resources about building home, you can ask us about our newest book or see Our FAQs for Building Homes.

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