Frequently Asked Questions About Working with a Luxury Custom Home Builder
Building a custom home is a significant milestone for anyone. Custom new home construction is a dream that many people work hard toward, and when the time comes, there are countless decisions to make and questions to answer.
If you’re considering opting for custom home design, it’s natural to have a few questions about the process. Here are the answers to some of the most frequently asked questions about working with a luxury custom home builder on your bespoke property.
What’s the difference between a spec home and a custom home?
A spec home, also known as a speculative home, is a house built by a builder without a specific buyer in mind. These homes are usually built in a neighborhood or community where the developer or builder has purchased a lot of land with the plan to build and sell properties for profit. The home builder will choose a home plan and features that they believe will appeal to a broad range of buyers, maximizing the chances of selling all of their planned properties. Once completed, these luxury homes are put on the open market for sale to anyone who’s interested.
A custom home, on the other hand, is built for one particular homeowner on a specific plot of land. This type of home is completely personalized to the homeowner’s tastes, needs, and budget. The homeowner works closely alongside their custom home builder to design and build a home that meets their individual requirements. From floor plans to finishes, every aspect of a custom home is tailored to that one individual’s or family’s preferences.
Why should I build a custom home?
Custom home design offers numerous advantages over a standard spec home. For starters, you get to design your dream home from the ground up. You have complete control over the floor plan, features, and finishes, ensuring that your home perfectly complements your lifestyle and tastes.
Additionally, building a custom home allows you to select high-quality materials and finishes, ensuring a durable and long-lasting property. Luxury custom home builders often have access to premium materials and equipment that may not be available to production builders. Production builders also tend to prioritize profits over quality, whereas custom new home construction allows you to dictate the construction quality while accommodating your budget. Moreover, building a custom home can potentially save you money in the long run. With a luxury custom home, you can prioritize energy efficiency and choose sustainable building methods and materials, resulting in lower utility bills and maintenance costs.
How long is the new home construction process?
Just as every custom home design is one-of-a-kind, so is every project timeline. The duration of the new home construction process will vary depending on the complexity of the design and the size of the home. Generally, custom homes take longer to build than spec homes as there are more decisions to be made and factors to consider. Generally, most custom homes take 12-18 months from initial consultation to final move-in.
Your luxury custom home builder will be able to give you a personalized timeline during your initial consultation. Based on your chosen floor plan, materials, and finishes, your timeline will vary, but a reputable custom home builder will keep you informed every step of the way and continually update the estimated completion date as it changes. While delays are often inevitable in custom home construction, an expert home builder will also be able to minimize change orders and proactively avoid significant delays while maintaining open communication about any changes that do occur.
Why do custom homes appraise lower than they should?
A unique financial consideration of building a custom home is that these homes typically appraise for less than their actual value. This is because they are often built in established neighborhoods with homes that were constructed in previous decades. Because of this, there are no recently sold properties in the area that can be used as accurate comparisons for appraisals. This lack of “comps” means that appraisers must look at other factors to determine the value of a custom home, such as the cost of materials and labor, which may not always align with the final selling price.
This disconnect between appraisal values and actual home values can be a hurdle for buyers looking to finance their custom homes. Since lenders will only loan a certain percentage of the appraised value of the property, it’s a good idea to ensure that you have more cash than needed to put toward your new home if you opt for a custom home design. If accurate appraisals are crucial for you, look at building your new home construction in a neighborhood with many other new homes that can be used as fair and accurate comps.
At AFT Construction, we are dedicated to building beautiful custom homes that exemplify elegance and luxury. Our exceptional team of experts is committed to transforming your one-of-a-kind vision into a stunning reality, with an emphasis on superior craftsmanship and meticulous detail. Discover the joy of a completely custom building experience, where every element of your home is designed to your exact specifications. No matter what you’re envisioning, we ensure every aspect reflects your desires. To begin your journey toward your bespoke dream home, contact us today to book a personalized new home construction consultation.