If you’re trying to become a homeowner for the first time or move into your dream home, it pays to weigh your options. Building a custom house from scratch is one of the ideal ways to move into an incredible home.
The share of new build homes rose to 20% recently. If you’re looking to join this list of custom homeowners, there are a variety of tips you should understand first. We’re happy to explain.
Here’s what you should understand about the cost of building a custom home and other factors that come into play.
Know the Cost of Building a Custom Home
Start by understanding the value of property in the area so that you’re prepared to finance it over the next several years. According to national averages, building a custom home might cost you $100 to $400 per square foot in most cases.
While these are national averages, you have to consider the state and city you’re in, along with the current state of the real estate market. Here are some tips that go into your custom home cost and building expenses:
Choose a Quality Design
The design that you pick will play a big role in the cost of your custom home. It starts by considering the square footage and number of bedrooms and bathrooms. You can choose a pre-built blueprint or floorplan, or work with an architect that can design you one from scratch based on your desires.
Start by looking through some professional designs and renderings to get an idea of what you can receive from your custom home. From there, you can begin mapping out timelines for the project and looking into permits and rezoning requests.
Consider the Building Materials
Do your due diligence when shopping for the building materials that will go into your custom home. This means choosing materials that will fortify the exterior and help you enjoy your experience indoors. Examples of building materials that you can look into include:
- Various types of lumber
- Fiber materials
Use energy-efficient building materials whenever you can. Filling your home with quality building materials will help you protect the R-Values in your household while keeping your utilities in check. You’ll lower the total cost of ownership (TCO) for the household and will get the best quality from any home that you invest in.
Study the Current Real Estate Market
The current state of the real estate market also plays a role in the price you’ll pay for a home. For instance, Orlando is currently home to one of the best commercial real estate markets in the United States, and homeowners are experiencing record highs.
Building a home is a tremendous investment, so it’s important that you choose a city that features properties that are appreciating in value. You’ll appreciate the equity boost and the fact that you have a piece of real estate that will expand your portfolio. Get to know the current turnover rates for homes and whether you’re living in a buyer or seller’s market.
Consider the inflation rate and what kinds of interest rates banks are giving out at the moment. This will help you get to know whether you’re getting a discount, paying the market average, or overpaying for your new custom home.
Find a Skilled Builder
It takes the help of a quality builder if you’re going to get positive results from your custom house. Talk to a licensed and insured builder that can show you their prior work. Consider going to a home parade to tour some show models.
This is a great time to get a builder’s contact information so that you can begin exploring your project. A builder should be accredited through organizations like the National Association of Home Builders (NAHB). Look into getting referrals from people you know that have built a home with the help of a professional.
After you’ve found the help of the right builder, they’ll work with your price range so that you have a better idea of how much you’re going to pay.
Look Into Getting Financing
When you’re going to purchase a custom home, financing through a bank or credit union is always a big piece of the equation. Speak to a financial institution that you trust and have an established relationship with, and get your credit in the best position possible. Explore the market to figure out what kinds of terms are available, and whether you should go for a 15-year, 30-year, home equity line of credit (HELOC) or other financial arrangements.
The arrangement that you decide on will also dictate how much you end up paying in total, once the principal and interest are calculated. You might also consider refinancing at some point while owning the home.
Find the Best Custom House
Use the tips above so that you can cover the cost of building a custom home. You’ll love where you live when you treat this decision with the magnitude that it deserves. Take time to work with the best professionals that you can find, and start brainstorming what you want out of a new custom home.
MJS Designers Group can help you when you’re looking into design and real estate that gets you a return on investment. Consider these tips so that you can handle all of your real estate needs. Take the time to contact us online or give us a call at (407)629-6711.