Things to Think About When Building a Custom Home
Many would-be homeowners start their home buying journey with a desire to build a custom home. But the data on homeownership shows that the majority of buyers end up purchasing an existing property. What happens to most people's desire to custom build their home?
As it turns out, the reality of building a custom home is far different from the fantasy. And when confronted with that fact, many people opt out of that choice. But, there are a lot of things to be said about building a custom home. As RentFiveStar.com explains, homebuyers who chose this path are guaranteed the following benefits:
They can have their home in a specific location where they want it.
The maintenance cost of the house is lower because everything in it is new.
They can grow into their home by designing it to fit their future needs.
They can make the home energy efficient from the get-go.
They get to choose their floor plan and can maximize floor space.
But before they can access these benefits, homebuyers firstly have to scale the hurdle of custom building their home. For dauntless homebuyers who want to build their own home, what are the things they should know?
1. Should you build your own home?
It is not a question of your abilities. Instead, it is about taking a hard look at your life and deciding if you can accommodate such a massive project. Building your own home is a time demanding endeavor. If you have pressing issues in your life; a challenging job, young marriage, or little children to look after, a custom home may not be the best idea.
2. Plan, plan, and plan a little more
A building project is a multifaceted project with plenty of room for mistakes. The way to mitigate this is to plan every detail of the project beforehand. It means that before you can embark on a custom building project, you must have an experienced contractor by your side. This person will guide you through every aspect of the project to decide what is feasible and affordable. Without this, you will make mistakes and end up with a home far different from what you envisioned.
3. Find the right location first
Most people attempting to build a custom home first design their dream home before they look for land and then hire a contractor to construct the building. When they do this, they fail to consider the limitations that the land could impose on their design. The proper sequence is to sit with an experienced contractor to discuss the project and look for a land that can accommodate that design.
4. Budget before design
The second mistake that custom home builders make is designing their dream home before determining their budget. Before going ahead to design the home, you should set spending limits for the project. Based on this, the designer can restrict their design to the limits of the budget. It is critical as many custom home projects do not get completed because they exceed the budget and the owner's funds run out before completion.
5. Think your design through
The design of the home should not major on features that become irrelevant in a few years. Instead, it must take the following into account: future proof the home by thinking of your future needs, think of things that you hate or love in your current home, keep your wants separate from the needs, design with an eye on keeping energy and maintenance costs low, and finally, design with resale in mind.
6. Construction finance will be challenging
Getting financing for a custom home is not straightforward because most lenders will not lend to such projects. That usually means you cannot obtain mortgage approval until you finish the project. The best way to finance a custom home is through a construction loan, but these have different qualification criteria than a standard mortgage. Moreover, you will be required to spend a lot of your own money throughout the project.
7. Find the right people
The right designer and contractor can make your project easy. And the wrong ones can turn your dream into a nightmare. It is vital to research people before you hire them. Have a screening process, check their licensing, experience, trustworthiness, insurance & bonding, and their experience in similar projects in the last three years. Ensure you contact the references they provide and ensure that you communicate with them.
8. Expects lots of delays
The builder will give you a schedule for the project; treat it as a guideline. There will be delays due to bad weather, permits, finances, and unexpected events. It is normal with building projects. But if you hired the right contractor, you will significantly minimize delays and their impact.
Finally, whatever happens, try to have fun on the project and enjoy the process of seeing your dream take form right before your very eyes. Cheers and good luck!
Article by; Jules Erickson with Five Star Property Management