The American dream is to not only have a home of your own, but also to be able to have a custom-built home. At Better Build Now, we obviously want to help you make this dream come true, and we offer numerous services to assist you, such as residential construction consultant and residential custom home construction project manager. Before taking that step, however, we have put together some basic tips to make sure you are ready for this very big step.
Tip 1: Can You Afford It
There are a lot of different aspects to building a custom home that will significantly impact your finances. For instance, do you have to purchase land as well as the pay for the custom home build or are you buying directly from a developer, in which case the land is already included in the price of the home? In all likelihood, you are going to need to secure a loan, which means you need a credit score that is, at worse, in the mid-600s to get a decent rate. In most situations, you are also going to need to put somewhere between 10 and 20 percent down, so consider how that will impact your household finances.
Tip 2: Choose the Right Area
In all likelihood, this is going to be your forever home, so you want to make sure you pick the right area. If you plan on having children, have you checked out the local schools? If you are retiring there, are there senior citizens centers? Are there entertainment options within walking distance?
Tip 3: Consider the Size
As we hinted above, if you are going to have children, you need to be forward thinking in the design of the home. You also need to look at the rooms you dream of having and decide if they are actually going to be used. For instance, you want a craft room, but how often do you really craft? Remember, you are on a budget here, so look at this from every aspect and build the home you want and need, but do it without unnecessary waste.
Tip 4: Timing
This is listed as number four but it could easily be number one. Timing is everything, and you have to look at how the housing market is responding and interest rates. For instance, if this is not your forever home and housing prices are exploding, you have to consider if you are paying too much for the home right now. The same for interest rates, as even a one percent hike in interest could mean tens of thousands of extra dollars over the course of the mortgage. You also have to consider the supply chain and how much these supplies are going to cost now versus in the future. As we saw over the course of 2020 through 2022, supply chain issues drove the cost of custom home building through the roof.
Tip 5: Pick the Right Builder
Do your research on the builder to make sure they have a very good reputation. I can tell you horror stories about people that have had a custom-built home only to get the keys and realize the builder cut all kinds of corners, giving them a home that is hardly worth what they paid for. I would suggest not only researching online, but to also visit other homes the builder has built as well as talking to homeowners that have worked with this builder in the past.
As we have stated before, this is likely to be both your forever home and the largest single investment you ever make, so you cannot be careful enough.