From the Ground Up

Understanding the Cost of Building A Home

Custom Home Building Costs Vary Greatly

The great thing about building a custom home is that you get to choose everything, but for calculating the cost beforehand, that means that the price can vary a lot based off of your choices. Typically, a custom home will cost more than a modular home, because of the custom design process and variety of options for elements of the home.

However, working with a home builder can actually save on some costs, especially if that builder has customizable plans already in place for you to choose from and property that is already available to purchase. The cost can vary depending on the options that the builder has available.

Property

This is one of the first costs you need to account for, as the area where you choose to build will affect other costs as well. You can purchase property from your custom home builder, inherit property, or plan to buy in a specific area of your desire. No matter what route you take, you need to account for property costs, which vary depending on your state, city, and local area.

Custom or Modular Home Build

Will you build your dream home from scratch or choose a modular home to be modified? Will you work with a developer or a home builder? When you are thinking about this cost, you may want to consider the future and if you will want more space for additional family members. Some people choose a modular home because it is a cheaper option, but then decide down the line they want to expand their home for more space. However, sometimes it is not possible to install a second floor because the existing modular home cannot support the new weight. It is always a good idea to consider future needs along with current needs, to make any future changes as easy as possible. If you need some ideas to consider your ideal future home according to your lifestyle, check out our free Lifestyle Checklist!

Design

Design is one of the most fun parts of the home building process, so it’s very important to account for these costs ahead of time. Especially if you have a lot of custom requests, these costs can quickly add up. To make things easier during the actual design process, set a hard budget for design ahead of time, so you know exactly what you can afford. Make sure to include interior costs too.

Insurance

Building your own custom home is an investment, and it should be treated as such. Protect your new home, especially during the construction phase, with insurance.

Permits

Ensuring that you have the correct permits can sometimes be overwhelming, but your home builder can help guide you through this process. Once you work it out with your home builder, make sure you are clear on what permits you need, and how much they will cost.

Construction

Work with your home builder ahead of time to determine how much you can expect to pay for construction. This cost should include excavation, site preparation, roofing, electrical installation, and plumbing.

Appliances

Who doesn’t love brand new appliances in a home? You may be considering a lot of new appliances to make sure everything matches your desired interior design, such as an oven, dishwasher, refrigerator, washer, dryer, etc. Make sure you select these appliances based on the budget you already have so you aren’t surprised with any costs!

Home Inspection

At the very end of the home building process, it needs to be inspected to make sure the construction meets standards for occupancy. Find out how much this will cost ahead of time so that again, you are not surprised with any costs. The cost will vary depending on the size of your home.

Landscaping

You don’t have to consider this cost up front if you’d like to work with landscapers at a later time, but if you’d like the landscaping ready when you move in, definitely consider this cost.

These are all things you should consider when building a custom home, but of course it can vary. It may seem overwhelming at first, but remember that you are building your dream home, and it is an investment. Building a custom home can also save you money. One example of this is that new homes are typically built to be energy-efficient, which will end up costing you less on your energy bill. By building your own home, you also have the peace of mind that everything works, there’s no faulty faucet or squeaky door. And if there is, you can work it out with your home builder to fix. Buying an existing home can come with a lot of additional costs, due to broken appliances, remodeling, and upgrades or repairs to plumbing and electrical systems.

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5 Reasons to Buy a Spec Home

Spec homes are move-in ready homes that allow home buyers to see exactly what their new home looks like, rather than envisioning a home that has not been built yet. Here are 5 key benefits of buying a spec home:

Affordable Price

One of the key benefits of buying a spec home are the potential savings. The affordability comes from efficiency in the building process, not low quality. Home builders take time to carefully create their floor plans and design plans, which creates an efficient building process. There is also less customization in spec homes than custom builds, which offers excellent value for money.

Move-in Ready

Building a custom home is a very exciting process, however, it can be time consuming due to all of the choices available to the customer. Sometimes the process of building a custom home from start to finish can take over a year. If you’re looking for a home to move into sooner rather than later, a spec home is the right choice for you. If you find the spec home of your dreams, you could do a walkthrough, purchase the home, and move in a few weeks later. That quick timeline is unheard of in custom builds.

No Guesswork

When you buy a spec home, you get to see exactly what you are purchasing before you actually sign the dotted line. You have the opportunity to check every part of the house and ensure that you are happy with it. With a custom home, you may only see the blueprint or concept at the time of purchase, and you don’t get to see the exact end result.

You Don’t Have to Start From Scratch

With custom builds, you may need to coordinate with a design firm or architect to nail the home of your dreams and get it just right. However, with a spec home, it’s all done for you. Professional designers have already done the legwork to create a perfect combination of beautiful architecture and design.

Simpler Financing

The majority of spec homes are sold with settlement upon completion, which helps avoid complex lending structures and progress payments. The process of buying a spec home in general is much more streamlined and quicker than buying a custom home.

A special bonus of buying a spec home is that spec builders are typically small business owners, so when you buy a spec home, you’re supporting a small business and getting involved in your new community.

If you’re interested in learning more about spec homes, download our Spec Home Guide here!

What to Bring When Meeting With Your Custom Home Builder

Building a custom home can seem intimidating and overwhelming, especially if you’ve never done it before. When you first meet with your builder, you don’t have to have everything perfectly laid out, but a little prep work goes a long way. Here are five things you’ll want to bring to your first visit with a custom home builder.

Your Budget

This is the most important thing you can bring to your meeting. Although you don’t need an exact number, having a range will be crucial into knowing what can go into the custom home. All decisions will be based around your budget. Another reason it’s important is because the builder will know if the budget matches market pricing.

Potential Floor Plans

Having some examples of floor plans you like will be helpful in designing your home. Of course, this is a custom home, so you do not need to exactly copy an existing floor plan. You can customize it so it fits the needs of you and your family. Bringing a floor plan to your first meeting will give the builder a better idea of what you’re looking for and they can assess what will fit into your budget. You can download our Catalog of Floor Plans to get some inspiration.

Likes and Dislikes of Your Current Home

There’s a reason why you’re building a custom home. Make a list of what you like and don’t like about your current home because it’ll help you formulate an idea of exactly what you want in your new home. This list will help the builder come up with solutions and ideas of what to add to your custom home.

Contact Information

It’s important to designate a point of contact for the builder. Having one person be responsible will simplify things and make the process go quicker. The point of contact should be the person who is most familiar with the vision of the new home. Provide email, home phone, and cell phone information so the builder can reach you anywhere.

Relevant Paperwork

Bringing in relevant paperwork will help jumpstart the project. Bringing in sketches or pictures can help show the builder what you’re looking for. Bringing financial documents or if you’ve been pre-approved for a loan will also be helpful. If you’ve already purchased a lot to build on, bringing in county records will be useful as well.

If you’re ready to build your dream home, contact us to get started. We’d love to help. In the meantime, check out our Ultimate Guide to Home Building in West Michigan to learn more about the process.

What to Splurge on When Building a Custom Home

Building a custom home is an amazing opportunity for you and your family to decide the details of every inch of your property. While keeping your budget in mind, here are five aspects of your new home worth splurging on to increase your home’s resale value.

Countertops
Countertop space is prime real estate in the kitchen. The more you have, the better. Splurging on countertops can actually increase the value and appeal of your home if you decide to sell. Solid marble, granite, or wooden countertops are long-lasting if they are well cared for, making them as durable as they are beautiful. You’ll notice the difference a good countertop makes after just a few days in your new home.

Flooring
Flooring is worth splurging on not only for the look, comfort, and resale value of the home, but also for durability. Especially if you have pets or young children in the home, it’s smart to opt for wood, high-end laminate, or tile in moisture-prone areas like the kitchen, mudroom, and bathroom. Your home will be able to stand up to usual wear and tear longer with higher-quality flooring.

Storage
The longer you live in a house, the more things you accumulate. Between children outgrowing clothes and toys, to lawn and sports equipment, storage space is oftentimes overlooked when building a new home.

Energy Efficiency
A home is a long-term investment so it’s important to consider the property’s lifetime value as you build. Adding energy-efficient features like insulation, a high-quality HVAC system, and energy-efficient windows will help on utility bills and boost your property value. It’s easy to
incorporate these features when the house is being built rather than having to update systems post-build.

Appliances
Appliances can make a huge difference in the look of a kitchen. Spending a little extra on appliances can be a good investment and improve the overall aesthetic of your kitchen. The more frequently you use the appliance should determine which appliance you prioritize over others if you’re working with a tight budget.

Elevate your forever home by putting more of your budget into these five areas. You’ll increase your home value while providing your family with little luxuries along the way. It’s easy to replace lower ticket items along the way, so focus on these areas while building. If you have any questions about custom home building, we’d love to help. In the meantime, download our Ultimate Guide to Home Building in West Michigan to learn more about the custom home building process. Feel free to reach out anytime! In the meantime, download our Ultimate Guide to Home Building in West Michigan to learn more about the custom home building process.