Custom homes are a confusing and misunderstood segment of house hunting. There is a high percentage of those house shopping who initially think they want to have a custom home built, but they end up choosing a spec home that is pre-built or they work with a builder to modify a home that is currently under construction.
Many of those who think they are custom home buyers don’t understand the actual process. These are people who think they will buy the ideal piece of property, hire an architect to design the home of their dreams, and then take that plan to several builders who will be eager to bid on the project, and then they choose the lowest bidder to take control of the job.
The process is the opposite. The home buyer will first choose a builder then they will work together to find the ideal property and then construct the house. With this approach, the construction process moves more quickly and is less expensive for the home buyer. Here are the benefits of using this approach:
Choosing A Custom Home Builder
The regular home buyer may have “lack of vision” which means they may not be able to look at a lot and determine its actual value and if it is the right piece of land for their project. Sometimes a good lot may be overlooked because the home buyer doesn’t see the potential.
You can make sure you choose a lot that is perfect for the home in question at the most reasonable price. The builder will have an idea as to what you need and knows what to look for in real estate. There could be hidden challenges and problems with a lot that you wouldn’t notice. While it may take more than 30 days to finalize a land deal, but a savvy builder could complete the process in 7 days or less.
Another disadvantage faced by the buyer involves financing. The borrower will ask the lender if they will live in the home as their principal residence, and if there is an existing structure there that requires demolition, then that representation cannot be made. When purchasing a lot, cash does talk and allows you to be more competitive with buyers who buying up lots. Construction financing, on the other hand, allows the buyer to cover the lot and construction costs with a single loan.