Building a custom home can be one of the most exciting ways to get into a new house. Not only are you getting a brand new home that no one else has ever lived in, but you’re also getting to design the whole thing yourself.
Depending on how in-depth you choose to go, you can design everything from the floor layout to where individual outlets are going to be placed. While this may sound like a dream come true to many homeowners, there are a few things to be wary of when building a custom home.
Keep reading to learn some of the common pitfalls custom home builders encounter and how to avoid them.
1. Maxing Out Your Budget
When most people get approved for a home loan, they look for a house at the maximum price they can afford, including when building a custom home. However, this strategy can be dangerous for several reasons.
First, the vast majority of Americans already live paycheck to paycheck. Maxing out your home budget can exacerbate the problem, giving you a hefty monthly payment.
Second, when building a custom home, you have to plan for contingencies. In contracting, things rarely go exactly to plan. Make sure you keep a contingency fund on the side to prepare for any problems that may arise.
2. Not Choosing the Right Property
Next, remember that any home’s value is directly affected by its location. While it may seem like a good idea now to save money by buying less valuable property, doing so could have dire future consequences.
Consider the amenities available at the property, as well as the quality of the neighborhood, surrounding schools, and so on. Ideally, if you ever go to sell the home, it will be worth tens of thousands more than what it cost to build.
3. Being Indecisive
Failing to make quick decisions is one of the major mistakes custom home builders make. While you should never rush into things, you also can’t over-think every minute detail of the build. Be able to make decisions in a timely manner.
When it comes to the finer details, let the contractors do their thing. You don’t need to control every single aspect of the build. This will save you a ton of stress in the long run.
4. Not Thoroughly Reading Construction Bids
Another common mistake custom home builders make is agreeing to construction bids they don’t understand. Make sure you read through each bid thoroughly. Understand how the home build is priced (square-foot pricing, unit pricing, assembly pricing).
Additionally, know that lower bids don’t often come with a buffer cost to account for anything that may arise. Even though it looks cheaper on paper, these bids are rarely accurate. A higher bid with a built-in buffer allowance may be more cost-effective.
5. Not Planning for Delays
Finally, you now know to plan for building setbacks and financial contingencies. However, this also means preparing for delays. Understand that your contractors can’t control the weather, delays with permits from the city or county, or any other issues that arise.
Expect delays and embrace that they’re part of a custom home build more often than not.
Do You Need Help Building a Custom Home?
If you’re building a custom home and want help, you’ve come to the right place. We can help you dream, design, and build your dream home. We also do renovations to help people turn their current homes into the homes they’ve always wanted.
Contact us today for more information!