Things to Think About When Building a Custom Home

If you are looking for a home that meets all of your family’s needs in terms of the size of the house, its location, floor plan, quality of the building materials or appliances, and workmanship, how would you find that house?

 

The reality of buying a new home today is that you have to content yourself with someone else’s ideas of what you need and don’t need in the home you will live in. The designer and building contractor are the ones who get to decide what is trivial and what is important.

 

When those decisions are made from the standpoint of what profits the company rather than what makes you and your family happy, you may be sure that the results could never be satisfactory. That is the case with most of the homes that are on sale out there in the market, says Paramount Realty.

 

It is why the only way to be completely sure of getting everything you want in the home you will live in is to build that home yourself. Building your home from scratch is the preferred homeownership route because it is the only one that offers you complete satisfaction.

 

However, before you set out to build a custom home, you should know that even though custom building your house is the best way to own a home, it is not necessarily the easiest path. To make your custom home project a success, you need to know and do the following.

 

1.   Determine your budget

How much can you realistically afford? The budget should not be determined by all the fancy things you want. Actually, it is so you are not misled by your desire for fancy things that you need a budget.

 

The budget serves as a tool to help you determine what is necessary and affordable. Without a budget, be prepared to overspend. The number one reason a lot of custom home projects are not completed or to the owner’s satisfaction is because the project goes over budget.

 

2.   Find the right builder

Before attempting to design the home or buy land for it, first find a custom home builder you can work with. The builder must have extensive experience building custom homes that match your own home in size and budget. They should be local and it’s critical that they have experience with the local building industry and regulations.

 

Interview at least three companies before choosing one, contact the references they provided, and if possible, visit one of their ongoing projects.

 

3.   Design the home based on your needs

Working alongside your contractor and a designer, you may now design the home. When designing your home, make a list of your needs and your wants and prioritize the needs over the wants. Think of your future and ensure the design will still be relevant in 10-15 years.

 

Use what works and what doesn’t work in your current home as a source of inspiration. And also consider the possibility of selling or leasing the home in the future.

 

4.   Plan every detail of the build

Creating a general design of your home is not enough, you must decide on every single component of the house before you begin construction. Although this will cause decision-making overload, it will save you time, money, and anxiety in the future.

 

You will significantly reduce the change of orders in the project; change orders increase your costs. And you will not waste time trying to make up your mind on something while the whole project is held up.

 

5.   Find the right lot

Location is the single biggest determining factor when building a custom home; it can lower or inflate the project cost. The location also limits the aesthetic and structural elements you can include in your home.

 

Zoning laws, building codes and restrictions, or HOA rules will significantly influence what you can or cannot do on the land. This is why it is important not to buy a lot until you know what kind of home you need and the location where you can build that home.

 

6.   Learn about construction financing

In all probability, your custom home project will not qualify for the standard mortgage. Most lenders will not lend you money to build a custom home because of the risks involved in such a project.

 

However, you will still be able to build your home using construction financing. The terms for this type of financing are different from a standard mortgage. And also be sure to confirm that when the project is completed, you will be able to convert the loan to a regular mortgage.

 

7.   Prepare for problems

There will be delays and disappointments along the way; all construction projects have them. Be prepared to spend some of your own money. Set aside a contingency reserve for minor purchases, funding delays, and other emergencies. Treat your project schedule as a guideline; expect it to go past the deadline. And most importantly, keep a positive attitude throughout the project.

 

 

There you have it, things to think about when deciding to build a custom home.