These days there are a lot of options for people who want to build a new home. When considering your options, you might want to look into kit homes and on-your-lot builders—also known as custom home builders—if you want to save money and do some of the work yourself. While both approaches allow you to get more house for your money by building sweat equity, they are two very different approaches:
Understanding the difference between them can help you decide which option is right for you. Let’s find out more about how to choose your dream home.
Kit homes can be considered “mail-order” homes because the parts are delivered to a manufacturer and stick-built on your property either by you or hired contractors. Most manufacturers offer a range of predesigned kits, and some allow a certain degree of customization, although this might be limited to finishes and fixtures.
Two top benefits that kit homes provide are:
Kit homes have a long history in the U.S. According to an archivist from the University of Maryland, kit homes were very popular in the first half of the 20th century. Most recently, kit homes have become a popular item on the market with Amazon’s revival of the product.
Just like any other stick-built home, prices for kit homes vary by floor plan. However, they tend to be considerably cheaper to build than traditional homes. Many manufacturers also offer the option of building the kit home in a climate-controlled environment, which can shorten the build time and labor costs.
The construction materials for kit homes are purchased in bulk and delivered to the factory, which also factors into lower costs. This impacts the overall price of the floor plan, which can range from $10-$60 per square foot. However, it is a good idea to talk to a contractor because some kits don’t come with important construction materials, such as drywall or interior elements. Speaking with a contractor can provide a more realistic estimate.
Although the cost of the kit home might look cheaper than other stick-built houses, don’t forget that labor costs are a major cost of the homebuilding process. In fact, the kits are close to only 25 percent of the total cost of the home once you factor in labor costs.
Just like any other big financial decision, there is no right answer for everyone. Here are some important factors to consider when considering a kit home build.
The pros of purchasing a kit home include:
The cons of purchasing a kit home include:
For the avid DIYer with some building experience, kit homes might be the right fit. However, if you don’t have any experience, a kit home might be more work than you bargained for.
When you buy a kit home, unless you have found a builder who is willing to assemble it for you, you’re pretty much on your own. While kit homes are easier for homeowners to construct than traditionally built homes, you must still have some skills and the necessary tools to complete the job. You must also coordinate and work with local subcontractors, such as plumbers and electricians.
Kit homes require the same level of permitting that any other type of home does, so it’s up to you to understand building codes and the permitting process. This usually requires you to work with local regulators to ensure that all of the appropriate permits are in place before you do site work and construction.
If you already own a buildable lot, you can have a kit home shipped directly to it. However, if you need to purchase land, you must work with a Realtor to find a suitable lot.
If you already own land or are planning to purchase a lot, you can work with a local builder to construct your new home. Some builders offer a variety of stock plans that cannot be changed, floor plans that you can customize, full custom services, or some mix of these options. If you have a specific vision in mind for your dream home, an on-the-lot builder will be able to help you achieve it better than a kit home.
When it comes to building a home on your lot, you have the option of building with a custom home builder, which will allow you to select from a variety of plans that you can customize. Unlike kit homes, working with a custom home builder won’t allow you to build the home on your own.
The primary benefits of working with a custom home builder are:
Builders also offer a range of options for the construction process. These include full turnkey services if you prefer a hands-off approach and programs that allow you to participate in the process to build equity. For example, when you work with Adair Homes, you can save money by taking on certain tasks, such as site development, landscaping, and final detailing.
Much like kit homes, the price of a custom home varies based on the model. This can inform the materials used and the time it will take to build the home, which will also impact labor costs.
When comparing the cost of a custom home to homes on the market, a custom home can be considerably cheaper depending on the market. Because of market volatility, houses can increase rapidly while household incomes decrease, as most of 2021 has shown. Building a custom home can provide some stability that the housing market often can’t.
One of the major benefits of partnering with a custom home builder is that you’re getting just that: a partner. From the design stage to the build, a custom home builder helps to ensure everything goes smoothly. However, there are a few things to consider before making your decision.
The pros of working with a custom home builder include:
The cons of working with a custom home builder include:
Customization has its obvious advantages. You get to live in the home based on your exact specifications. While the cost of labor can be expensive, the quality of materials and energy-efficient standards are lower, and the lifetime of your house is higher, making it a great investment.
When it comes to the permitting process, many on-your-lot builders will handle the process for you, but again, if you want to save money, you can do much of that work yourself.
When you work with an on-your-lot builder, you benefit from years of experience, well-established relationships with subcontractors, and knowledge of local regulations. If you want to do some of the work yourself, make sure the builder you select will allow you to participate in the process.
While kit homes are an intriguing option, the truth is, they are not right for everybody. If you want to be involved in the construction of your new home but don’t want to do it all alone, consider working with Adair Homes. Our unique program allows you to get the most home for your money, and you have the freedom to customize the floor plan and features to match your lifestyle. Get in touch today to get started.