Deciding on the particular build you wish to own in the early stages is significant. There are two types of homes you’re likely to own, i.e., a production home or a custom home. A production home features a similar design of homes constructed within the neighbourhood, while a custom home has a specific design and floor plan as per the owner’s preference.
Suppose you select a custom build; it does not come cheap. In many instances, you have to acquire a piece of land to build such a home. In addition, the whole construction process of a custom build from start to finish comes with extra cost. This post explores more reasons why custom homes are expensive and whether you should buy/build one.
Reasons Why Custom Homes are More Expensive
- Buying land
As mentioned above, setting up a custom build might require you to acquire new land, depending on your location. Suppose this is the case; you will have an additional cost of acquiring the land. You’ll also have to pay surveying fees. On the other hand, if you had the land and wanted to start building, that would reduce cost.
Remember you’re starting from scratch; therefore, you have to pay an additional cost to ensure new utilities are in place on top of acquiring the land. They include electricity, water, sewage, gas, and cable, etc.
Buying a ready custom home might be relatively cheaper compared to building one yet more expensive than a production home. However, buying isn’t suitable for you if you are into specific custom features.
Here are other things you might need to address on new land:
- Excavation services to enhance topography
- Set up the drainage on/off-site
- Hiring architects for a custom design of your build
First, architects are not always necessary, even for complex house designs. For instance, if you’ll be working with a contractor for your custom home project, you might not need an architect since they have their own architects. However, other factors might eventually lead you to hire one.
If you need a unique custom design, you might need to hire one. Additionally, if your local authorities require you to have a drawing from an architect, you’ll have to hire.
In this scenario, an architect will charge a higher fee for a custom design depending on their experience and complexity of the drawing. Generally, architects are expensive. They charge approximately 10% of the final cost of an entire project. However, the prices vary depending on your location, type of services needed, and probably your negotiation skills.
- The cost of construction is high
Since you’ll be constructing a home with specific designs that meet personalized aesthetics and functionality, it will cost a significant amount of money. Additionally, the project duration of a custom home is relatively longer.
It’s hard to determine the exact cost per square foot for custom build due to various variables such as design, materials, and location. However, the general rule and experts outline that it’s likely to cost twice as much as a production home. Find out how much a builder costs.
Let’s explore various aspects that affect the cost of construction:
- One aspect that brings about the increased cost of building a custom home, as highlighted above, is hiring an architect. They charge about 8% to 15% of the total construction cost as a fee. Building experts estimate a custom home costs anything between $350, 000 up to $1.5 million. So you can estimate how much you’re likely to pay when you hire an architect.
- Specification of the custom home brings about an increased building cost. It’s not surprising that you find a large and basic home cost less to set while a smaller home with a luxury standard cost millions to build. It’s not about the size but the scope of the specification.
It also boils down to using specific materials for the project. The more custom materials used for a project, the higher the cost. Additionally, custom homes tend to have luxury finishes that are expensive to purchase and install. Some of the finishes that require large sums of money include floors, mouldings, cabinets, lighting, windows, and countertops.
Lastly, if you are into a more comfortable custom build, you might opt to have some systems in place. They include an HVAC system, home technology, thermal wall system, etc. But, unfortunately, they are also not cheap.
- Lastly, building an amazing custom home requires you to hire custom builders with the skill and knowledge to construct similar structures. Unfortunately, hiring such professionals is not cheap.
So, how much does a custom builder cost? The average cost is about $80 per hour. However, it might be higher or slightly lower depending on the complexity of a project. Additionally, other builders offer fixed price charges.
Considering that constructing a custom build is time-consuming, you expect to incur an increased construction cost, especially if the builder charges on hourly rates.
As custom builds are more expensive, you need to consider multiple builders quotes to select the one that is right for you.
Are Custom Homes Worth it?
Regardless of custom builds being more expensive than a typical production home, it has many benefits. Building a home based on your personalized design and custom specifications brings about personal fulfillment as a homeowner.
Someone who owns a typical home might in the future renovate or sell it to acquire a new home that suits their needs. On the other hand, a custom homeowner saves a lot in the long term since they already own a build that aligns with their needs and taste.
Constructing or buying a custom build is expensive yet has numerous benefits. However, the construction cost is high, hiring architects is not cheap, and you need to acquire new land to set up a custom home. For this reason, custom homes are best suitable for those who have plans to settle there for many years.
If you dream of a specific home design, then a custom build is the choice for you. However, it requires having enough money to construct one depending on what exact build you desire.