Is Building a Custom Home Worth It? (7 Benefits of a Custom Home Build)
What is a custom home build?
Lots of people dream of designing and building their very own fully customized dream home, but many wonder if building a custom home is worth it. In order to answer that question, we must first start by defining what a custom home is, and what it is not.
A custom home is a one-of-a-kind house where the buyer has full control of the layout, design, and features of the home. A new construction home is different and doesn’t offer anywhere near the choice of a custom home. A Custom home’s cost can vary greatly based on the design and features of the home and doesn’t necessarily need to be a “luxury home.” As the buyer, you have full control over the design and which features you want to invest in.
According to the US Census Bureau, over 1,737,000 new private home housing permits were issued nationally in 2021. However, the majority of these permits were issued to larger home builders developing tract housing, a type of housing in which multiple houses that are similar are built on a tract of land previously subdivided into smaller lots. These “cookie-cutter” houses are built by large private home builders like D.R. Horton, Lennar, and KB Homes. Data is released periodically, and the last report shows the percentage of single-family homes that were custom-built grew to 20.2% of all new construction, according to data from the Census Bureau’s Survey of Construction (SOC). The 20.2% of buyers who chose this option are some of the most discerning home buyers want to take advantage of the many benefits of building a custom home.
Benefits of building a custom home
When weighing options, many people ask themselves “is building a custom home worth it?” While that question can only be answered by you, to help you make an informed decision, we’ve outlined the top seven reasons to build a custom home:
A floor plan that fits your lifestyle
Building a custom home enables you to design a home exactly for your family’s needs. Don’t need a dining room? Want a closet designed to fit all your shoes? Want an open floor plan? You will be able to design how you and your family use your house, which is different than buying an existing home where you need to force fit your lifestyle on a previously designed home. Everyone has a vision for the size and features of every space, and building a custom home is the only way for you to get exactly what you want.
Self-expression
When you design your custom home, you get to choose every feature, no matter how big or small. A million different design details can elevate your space and give it the personal touch you’re looking for. While new construction homes are designed to appeal to a wide range of potential buyers, your custom home is designed for you and only you. That means you have the creative freedom to build a home that’s filled with character. You and your family will love living in a house that reflects your personality and makes you feel right at home. Building a custom home saves you from costly renovations after you move in, which are seldom factored into your initial budget.
More land
Most new construction homes are in a subdivision, where the builder is incentivized to keep the lot as small as possible to maximize the number of homes they can build. One of the biggest benefits of choosing to build your own custom home is that you get to choose the lot it will be built on. Most of the lots we find for our clients in San Diego are 1 acre or more. If yard space is a priority for you, building a custom home might be the best way to get it. For more details, check out our article on how to find the right land for your custom home.
Latest technology and innovations
New technologies are constantly hitting the market that can vastly improve the usability of your home. From smart showers, to multi-room audio, to floors that are waterproof and durable, there are a number of innovations and high-tech features that can take your home to the next level. A custom home will allow you to build something that you can’t find on the market, or that would be very costly to add to an existing home.
More reliable home
As a home gets older, the natural wear and tear of living takes a toll on the space. This can quickly become a headache for homeowners as they find themselves dealing with one issue after another. Everything in your custom build will be brand-new, so you won’t have to worry about underlying issues cropping up. New custom homes will also come with warranties in most areas, so you can rest easy knowing that if something breaks, it will be fixed.
More energy efficient
With the advancement of technology, newer products are far more energy efficient than older ones. This has environmental and financial benefits that can impact your monthly living costs. Many of our clients find that although they are building close to double the size of their existing home, their energy bills can drop once they move into their new custom home.
Equity built-in
Building a custom home requires a bit more effort than buying an existing home, but you also get the rewards of your effort. Recently a custom home that we built for $1.1M was valued by a certified appraiser at $1.6M. There’s a lack of new homes in the market, so custom homes are traditionally delivered at the highest price. We can’t guarantee that all our home builds will appreciate like the above, but it’s safe to say that plenty of our past clients have seen the rewards of building their custom homes.
These benefits are impressive to most clients, but we are sure you have more questions. If you would like to learn more, check out our article about the cost of building a custom home.
What makes a custom home worth it?
When people ask, “are custom homes worth it?” they are referencing the time, costs, and effort that go into the process as a whole. You need to decide before undertaking the project if a custom home is right for you. Working with Buildable, we manage all the challenging aspects of the project to make it easier than ever. Additionally, your vision for your home and what’s available on the market will determine whether it is worth it for you to build your own custom home, or not. Here are our top 5 reasons that a custom home might be worth it to you:
1. You’re not finding a home that fits your lifestyle.
Homes nowadays are priced over $1m, but are still small, have useless square footage, and/or outdated fixtures and finishes. With a custom home, you can get exactly what you desire. Many clients come to the conclusion of building their own custom home for this specific reason because there is no other option.
2. You have a specific style that you are trying to achieve.
Finding the right home aesthetic with the right layout may be impossible in this market. With a custom home, you can design your home exactly to your vision, in the area you want it. Do you want a Modern Farmhouse, Tuscan, or Mid-century modern home? Not many of these exist; if they do, they are highly desirable. Building a custom home will enable you to get exactly what you want.
3. You have always wanted to build your dream home.
Many people dream of building a home, and Buildable offers our clients the ability to complete their vision without the stress, challenges, or risks of going it alone. You may have been thinking about it for a while, and now’s your chance to work with experts to bring it to life.
4. You have very specific must-haves for your home.
At Buildable, we geek out on helping our clients achieve a home with thoughtful features that are unique and beneficial to their lifestyle. We have clients who want spaces designed around their pets, coffee lovers who want the latest technology, and people with medical needs that want thoughtful spaces. Whatever your needs are, we can help you bring them to life in a way that others can’t.
For most, if not all, of our clients, the completed custom home ends up being worth more than the cost of the build, and their happiness outweighs the effort to attain it. If you are patient to see the process through, building a custom home can be a once-in-a-lifetime opportunity to see your dream home come to life. Buildable was designed to eliminate or reduce the risks, stress, and confusion of the custom home building process. Our expert team will partner with you from start to finish to streamline the process and help you do it the right way.
Get a free cost estimate by using our custom home cost calculator below!
When is a custom home not worth it?
There are certain scenarios where a custom home is not worth it, and at Buildable, we’ll be very upfront about this as we want to ensure alignment.
Here are our top reasons a custom home might not be worth it:
1. You’re trying to beat the market.
Although our custom home builds come with built-in equity, making them a good investment, you will still likely be paying more than you would for an existing home because everything is new and you have control over all the details. When moving into an existing home, you’re likely to make many concessions on features and finishes. However, many people find it tough to make concessions when it’s in their control, which can increase the budget. You’re only human.
2. You have a tight timeline.
The building process will take time, an you will have to be patient. At Buildable, we pride ourselves on our project management and sequencing, which can deliver a build in 10-12 months. However, the total time can be around 2 years when factoring in finding land and designing your home. You can learn more about the time it takes to build a custom home in this article.
3. You don’t have specific desires for the layout of your home.
The truth is, some people have a clear vision for their home, and some don’t. If you are not particular about the layout of your home, the size of your lot, or the features in your home, it may make sense to pursue a tract development where you can get a new home and avoid dealing with the minutiae of a custom build.
4. You have a very tight budget & no contingency.
Building a home means you are subject to labor and material cost fluctuations. If you’re not capitalized appropriately for the project, this can lead to challenges later. If your budget is extremely tight and you have no room for contingency, it may be best to buy an existing home. At Buildable, we advise our clients to be conservative in home size and features to ensure there’s room in the budget for things that could come up.
Buildable is always here to discuss the granular points on when it is and isn’t worth building with you. The last thing we want is for you to get in over your head with a custom home build. You can consult with our team of experts to determine whether your vision is right for a custom build, and trust that we will give you an honest and transparent evaluation.
If you have questions about the cost of a custom home, you can get a free estimate here.
Build Your Home in San Diego With Buildable
Building a custom home takes an immense amount of time and effort, but with the right team, the end result will be well worth it. The process can appear overwhelming to those who start the journey alone; however, building your dream home can be simple when you approach the process with experts by your side who can guide you through every step. Buildable specializes in luxury custom home construction, meaning we have the experts on our team that you need to have a stress-free home build, and create the luxury home of your dreams. We have over 40 years of home building experience within our team, and over 1,000 homes built. Read about our team, talk to us, and get the answers to questions you may have about starting the custom home building process in San Diego.
