Building a custom home sounds fantastic. But how could you possibly afford it? The truth is that you may be closer to owning a custom home than you think. Perhaps you are put off by the prospect of a long wait time to move in, or perhaps you simply do not believe you can afford a custom home, but it turns out that you may be mistaken about custom homes.
Myth #1: Custom Homes Are Only For Wealthy People.
“Custom homes can range in price depending on size, style, and level of detail,” says John Judd, Jr., co-owner of Judd Builders, a custom home builder in Asheville, N.C. “People believe that building a custom home is an overwhelming process that requires more time and money than the majority of people have.”
That means you can build a custom home even if you have a limited budget. Building a custom home simply means that you will have complete control over the materials used, the size of the home, and the additional features that will be included. The right custom home builder will be able to assist you in determining the best floor plan for your budget and lifestyle.
Myth #2: Building A Custom Home Takes Longer Than Building A Spec Or Production Home.
Building a custom home does not have to take as long as building a spec or production home. Because you have more options, the time it takes to complete a custom home may increase.
“Custom homes typically take longer because the client has more options,” Judd explains. “The quicker a client can make choices and decisions, the faster the process will move.” In addition, a builder with an in-house crew can better schedule and plan than a contractor who subcontracts everything.”
Other factors that can extend the build time of a custom home include the materials used (that Italian marble you want for your bathroom will be more difficult to obtain than ceramic tile) and the home builder’s waitlist. Essentially, you are building something that hasn’t been built before, while a production builder already has floor plans to work from.
Myth #3: My Custom Home Price Includes The Lot.
In most cases, the price of the lot will not be included in the price of your custom home. “Those who build a custom home have a very special lot or parcel in mind where they want to build a special home,” says Jerry Grodesky, a broker with Farm and Lake Houses Real Estate in Loda, Illinois.
If you don’t already have land for your custom home, work with your builder to find a lot that has everything you need to build the perfect home for you. After all, selecting the right lot is just as important as selecting the right floor plan.
Myth #4: Financing A Custom Home Is The Same As Financing A Spec Or Production Home.
As previously stated, you own the lot or land on which your home will be built. That means you, not the builder, are in charge of financing the home. To have the house built, you will most likely need a construction loan. These loans are not the same as mortgages. They are only temporary and will be replaced by a regular mortgage once the house is completed.
During the course of the project, your builder will be able to draw on the loan at various points. This type of loan may be more difficult to obtain because it is for a home that does not yet exist, and it may take longer to be approved because a lender will require project details. Inquire with your builder about the financing options available for your project.
Myth #5: I Need To Know About Design Or Architecture To Build My Custom Home.
You don’t have to be an expert in design or architecture to purchase a custom home — that’s what your builder is for!
Having a good sense of what you like and your style helps, but it’s not required. Your architect or builder should be able to assist you with big-picture design, and you can hire an interior designer for the finer details and furnishings.
There are design-build firms that can handle the design element as well if you want your custom builder to design the home rather than first hiring an architect and then a builder to design what the architect’s plans are. As a result, your home will not be a mishmash of styles.
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