What Is a 'Builder-Grade' House?

By Katelynne Shepard

January 24, 2025

Shopping for a new home can be a delightful and stressful process. It's a balance between adding your own personal touches to a space and not wanting to spend the money for a full down-to-the-studs reno.

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When you're looking for your next home — or considering building one to your specifications — it's essential to consider whether you want builder-grade finishes or higher-end features.

What Does Builder-Grade Mean?

Residential homes and commercial buildings are often given grades from A through C or D. These grades are crucial to investors who are trying to weigh the features and amenities the property offers against the cost. Class A is considered the best, Class B is the second best and so on.

While builder-grade isn't one of these official classifications, it's a term commonly used for lower-tier properties. It generally refers to a home with basic, mass-produced fixtures and finishes that are there only for practical function and meet the basic code requirements.

What Are Some Examples of Builder-Grade Fixtures, Features and Finishes?

Builder-grade fixtures and finishes are often easiest to spot in kitchens and bathrooms. A builder-grade kitchen typically has cheaper MDF builder-grade cabinets instead of custom wood boxes. Laminate countertops are another builder-grade kitchen finish.

In the bathroom, builder-grade construction includes mass-produced vanities, inexpensive plated faucets and shower fixtures and simple acrylic tub and shower surrounds. Other builder-grade giveaways include basic carpeting, matte-finish paint in gray or beige or inexpensive laminate flooring and single-pane windows.

Builder-grade homes also won't have a lot of extra features, such as dimmable lighting, outdoor kitchens or indoor/outdoor spaces.

Are Builder-Grade Materials Bad?

Builder-grade materials aren't necessarily bad. They're up to code and get the job done, which may be all you need in many cases. However, homeowners often appreciate more luxurious finishes and fixtures, and the most important areas can vary according to their priorities.

For example, someone who loves to cook and host dinner parties may be more interested in a home with custom cabinetry, stone countertops and other high-end finishes, such as a pot filler. A person who loves to take baths may consider a heated tile floor and a sunken tub a must-have. Those with children or pets may want satin or eggshell finish paint that's easy to clean and more durable flooring that stands up to spills and scratches. When you're house-shopping, it's vital to consider how you'll use the space, where you want to splurge and where you can handle more basic, cost-effective finishes.

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What Are the Pros and Cons of Builder-Grade Materials?

Getting exactly what you want in a home can require a near-limitless budget, but cutting costs with a few builder-grade finishes could free up enough money for the most important things. Looking at the pros and cons of builder-grade materials can help you weigh your options.

Pros

Builder-grade materials are generally:

  • More affordable: Builder-grade materials are usually the least expensive option, but they're functional and meet code requirements. If you don't care about a certain fixture or finish, going builder-grade can help you save significant amounts of money over higher-end options.

  • More readily available: Because builder-grade materials are mass-produced, they're generally easy to find if you need to replace them.

Cons

Some of the potential pitfalls to be aware of when it comes to builder-grade materials include:

  • Less durable: Builder-grade finishes are generally made of cheaper materials, such as particle board and veneer, instead of solid wood. This means they often don't stand up as well as more expensive finishes, and you might need to replace them sooner.

  • Not as aesthetically pleasing: Builder-grade fixtures are basic. They're generally only available in a few colors and finishes, which can make them harder to design around.

  • Don't usually have smart features: Builder-grade homes don't generally have energy-efficient or smart features, such as smart thermostats or high-SEER appliances.

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