A production builder typically builds from a library of floor plans and a few finish selections. Homebuyers can choose from limited selections of colors, design styles and options to upgrade in select components of their home that include: appliances, cabinets, countertops, paint color, plumbing fixtures, flooring and lighting.
Do you want to design a new home from scratch — or make major changes to an existing floor plan? Do you want to have nearly endless choices in the materials used to create your home? If the answer to either question is yes, you are more likely a candidate for building a custom home.
Not surprisingly, building a custom home costs more. Custom homebuyers often choose premium finishes. Additionally, architecture fees and floorplan complexity can add to the costs. The cost to build a custom home typically starts at $200 per square foot and can go way up from there. Also, plan on spending more if your new home will sit on expensive land. This may be due to specific subdivision requirements making your home more expensive to build. A custom home can also involve a construction loan.
Both production and custom builders typically pay for building permits, impact fees, site preparation, utility connections, sidewalks and driveways. A production builder usually includes those expenses in the price of the home; a custom builder may itemize them separately.
The decision to buy/build a production/tract home or a custom home is really your personal preference. There is no right or wrong answer. What matters is; what things are important to you; having your home customized to meet your family’s lifestyle or seeing/touching and walking thru what you are buying.
The New Home Source January 2019
