Think designing and building a custom home is out of reach? The truth is that a custom home is easier and more affordable than you may think. In fact, in many cases, you could pay the same price for a custom home (one that’s built exactly the way you want it) that you would pay for an older resale home.
Follow these key steps to make your dream home a reality, even if you’re on a tight budget.
Set Your Priorities
The first step to designing an affordable custom home is to prioritize and organize your ideas into a design guide. Start by brainstorming everything you do and do not want in your new home. Then organize your ideas into three categories: must have, nice to have, and do not want. Once you have an idea of what’s important to you, start collecting and organizing ideas using tools such as Pinterest boards or a Houzz ideabook.
Get the Facts About Financing
Just as your custom home is unique to your family, budget, and lifestyle, your financing should also be a perfect fit. Construction financing can seem overwhelming at first. In fact, you might be surprised to learn that many banks don’t offer new construction loans or, if they do, the options are limited to one or two products.
On the other hand, a financing professional who specializes in loan options for custom homes can be a fantastic resource for keeping your new home affordable. You might even be able to get a 12-month construction loan with no down payment if you qualify. Review the variety of loan programs available and ask for a free good-faith estimate that outlines your estimated costs.
Estimate Your Design Costs
Once you have the facts about what you can afford and the financing option that’s right for you, the next step is to visit a sales center. This is where you can fine-tune your budget with more information about the cost of building as well as the specific customizations and upgrades you’ll want in your new home. Estimating design costs starts with the base pricing in your area. From that number, adjustments are made for the features, finishes, and upgrades you want.
Ask for an Included Features List
Select a custom home builder that offers a comprehensive list of quality features that are included in the price. Fewer items to upgrade mean more savings for you. A home that includes quality features gives you more room in your budget to upgrade the items that matter most to you. For example, if your builder includes high-quality flooring, cabinets, and counters in the secondary baths, that gives you more room in your budget to upgrade your master bath with an extra-large shower, dual sinks, or a soaking tub.
Some of the high-quality materials and features in every Adair home include:
Pacific Crest cabinets
James Hardie siding
These are just a few examples of the brands we have partnered with to provide our customers with high-quality features. Even if you don’t do a single upgrade, you know you’re always getting a quality home with Adair.
Get a Second Opinion
Finding the right location is about more than geography. Each land location has its own unique site considerations. This may include clearing, grading, and other expenses that can take a big bite out of your budget. Once you’ve found a location, ask your builder for a free site evaluation to help you create a realistic estimate of the costs involved. This will help you feel more confident in your land choice before you buy.
Ask About the Builder’s Process
Every builder has a different process, even if they’re building the exact same set of plans. At Adair Homes, our unique process allows you to build immediate equity in your home. By participating in certain steps in the site development and construction processes, you can save money and increase your ownership value. You don’t need any experience to do this, just a commitment to getting the most from your investment.
Construction delays can quickly bust your budget, and unexpected costs can make your dream home feel like a nightmare. Ask questions up front about your home builder’s construction process. When will building begin? When will it be complete? What is the total project cost? What kind of price protection does your builder offer? A reputable builder with a track record of delivering homes on time will be able to clearly define benchmarks for the completion of your home.
Get Started Today
Building a new custom home is a big decision, and taking the first step can feel like the most difficult part of the process. The Home Ownership Counselors at Adair Homes are here to answer all of your questions about budgeting, design, and the building process. Contact us today to start on your path to home ownership.