Sure, building a custom home sounds great. But how could you afford it, right?
The truth is that a custom home may be closer in reach than you think. Perhaps you’re turned off by the prospect of a long wait time to move in or maybe you just don’t think you can afford a custom home, but as it turns out, you may be wrong about custom homes.
Common Misconceptions
Below, we discuss the five most common myths and misconceptions about custom homes.
Myth #1 - Custom Homes Are Only For Wealthy People
First and foremost, you do not have to be rich to build a custom home.
“Depending on size, style and level of detail, custom homes can range in price,” says John Judd, Jr., co-owner of Judd Builders, a custom home builder in Asheville, N.C. “People assume that building a custom home has to be an overwhelming process that involves more time and money than most people have.”
That means that even if you have a modest budget, you can build a custom home. Building a custom home just means that you’ll make all the choices about what building materials are used, how big the home will be and what other features will be included. The right custom home builder can help you find the right floor plan for your budget and lifestyle.
Myth #2 - Building a Custom Home Takes Longer
Building a custom home doesn’t necessarily take longer than building a spec or production home. The time to complete a custom home can increase since you have more choices to make.
“Custom homes typically take longer because the client has more options to choose from,” Judd says. “The faster a client can make selections and decisions, the faster the process will go. Also, a builder who has an in-house crew can schedule and plan better than a contractor that subcontracts everything.”
Other factors that can increase a custom home’s build time include the materials used (that Italian marble you want for your bathroom is going to take longer 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 - The Lot is Included in the Price
In most cases, your custom home price will not include the price of the lot. “[Those who are building] 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 based in Illinois.
If you do not yet own land for your custom home, talk with your builder to help you find and buy the best lot or land to build the custom home that you envision. After all, choosing the right lot is just as important as choosing the right floor plan.
Myth #4 - Financing a Custom Home is Difficult
As stated above, you own the lot or land where your home will be built. That means that you, not the builder, are responsible for financing the home. You will likely need a construction loan to have the home built.
This type of loan are different than a traditional mortgage. They are temporary and will change into a regular mortgage once the home is completed.
Throughout construction, your builder will be able to make draws from the loan at certain intervals of the project. This type of loan may be more difficult to obtain because it’s for a home that doesn’t yet exist and may take longer to be approved because a lender will require details about the project. Talk to your builder about financing options available for your custom home.
Myth #5 - Need to Know Architecture to Build a Custom Home
You don’t need to know about design or architecture to buy a custom home — that’s what your builder is for! Having a good sense of what you like and what your style is always helps, but isn’t necessary. Your architect or builder should be able to help you with big-picture design and you can hire an interior designer for the small detail items and furnishings. 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, there are design-build firms that can handle the design element, too. That way, your home won’t be a jumble of styles.
Is a Custom Home Right For You?
Custom homes are often misunderstood, but the reality is that building this type of housing is far more accessible and rewarding than the myths suggest. In reality, building a custom home is more doable than most people think. Whether it's concerns about cost, timeline, or complexity, most of the barriers people imagine are either overstated or entirely avoidable with the right builder and a clear plan for the project.
There are also some important things to understand going in, like what's actually included in your price and how financing works differently than a typical home purchase. But none of that should scare you off. With the right builder by your side, the process is a lot more straightforward and exciting than the myths make it out to be. 404
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Sanda Brown
After graduating in 2016 from The University of Texas with a degree in English, Sanda Brown became a content writer for the BDX with a focus on website copy and content marketing. At the BDX, Sanda helps write and edit articles on NewHomeSource.com, writes website copy for builders, and manages a team of freelancers that work on additional content needs.