Million Dollar Custom Home Builders in San Diego
What Makes a Custom Home Cost 1 Million Dollars?
If you’re thinking of building a million-dollar custom home in San Diego, it’s no secret that that money doesn’t go as far as it used to. In fact, as of 2022, the median cost of a home in San Diego is $884,000, and the average price is $1,185,000 per SDAR with an average size home being 2417 sq. ft. So why build your own custom home for a similar or higher price? The best thing about designing and building your own million-dollar custom home is that you can have a design that’s unique and specific to your lifestyle. You have complete control over the entire design, to ensure this is the home of your dreams. Custom-built million-dollar homes are what Buildable does day in and day out. As a million-dollar custom home builder, we understand the expectations of our customers in terms of quality, communication, and experience. Though you may be able to get more raw square footage from an used or existing home, at Buildable we believe that thoughtfully planned square footage is vastly more important. Not to mention that everything in a newly-built custom home is new and warrantied, which can give you peace of mind.
Many people ask us, “well, what makes a home cost 1 million dollars?” The answer is that all homes are complicated, and designing and building one can require up to 40+ different trades including carpentry, framing, lumber, electric, plumbing, flooring, and more. The lumber material package alone for a 2500 SF home can cost well over $75,000 , without accounting for the crew of framers needed to erect the structural framing. The size of the home and the cost of the lot will be the biggest drivers of cost, but the good news is that both factors are completely within your control. When you work with Buildable, you are in control of the costs of building. Buildable’s team includes an experienced builder who will guide you through every step of the process to ensure you stay on track in terms of your budget.
What is the Cost to Build a Million Dollar Home?
Well, a million dollars, but let’s unpack this question. The cost to build a million-dollar custom home will include the land and soft costs, which need to be accounted for in the overall budget.
At Buildable, we provide an initial range for the all-in cost of a build which is about $400-$500 price per square foot. The size of the build and features you choose to include will directly impact the cost of the build. Luxury features like custom cabinets, floor-to-ceiling windows, and built-in appliances can all drive the cost up. On the flip side, there are decisions that you can make to bring costs down. Below we have outlined the two biggest drivers of cost when building a million-dollar custom home.
The Land Cost
We recommend that about 25% of your all-in budget should be budgeted for the land, and the rest of the budget will go to the build, permits, and other soft costs. The more improvements required for the lot, the higher the overall project cost. There are a number of factors that can influence the price of land, including the location, size, and features of the lot you’re looking to purchase.
The Size of the Home
Every additional square foot of a home will bring additional costs, from labor to material. This is why size is such a major driver of cost when it comes to custom home building. The size of the home will be the biggest driver of cost, so it’s important to thoughtfully plan what each square foot will add to your home.
To break down the cost to build a custom home in San Diego, many factors must be considered. The cost of construction is only one of many costs associated with designing and building your custom home in San Diego. Approximately 67% of the total allocated budget should go towards building the actual home, while approximately 25% should go towards the land. The remaining 8% will go towards the necessary fees, permits, and other documentation required to ensure your house will meet all required standards.
Below we’ve created a breakdown of some of the costs you can expect during this process:
▪ 3% — Designing the home
▪ 3% — Permits, impact fees, and school fees
▪ 2% — Surveys, civil engineering, grading plans, and landscape architects
For more details, get a free estimate to understand how much your build will cost.
Learn more about the custom home financing process.
Find out how much your dream home might cost with our free custom home cost calculator.
What is the Process for Building a Million-Dollar Home in San Diego?
At Buildable, we make building a million-dollar home easy. Our team of experts will manage the project from start to finish, ensuring that we maximize the value of your home and deliver exactly what you are looking for. We take the guesswork and risk out of your custom home build by working with you, aligning your vision with your budget, and giving you all the information you need to make smart decisions when it comes to your home. Below is an overview of the typical process for constructing a custom built million-dollar home:
Determine your vision: The first step in this process is to develop your vision of your dream home with a high level of detail. This task includes your all-in budget, size of home, area you want to live, and your must-have features. This is how you will describe what you’re looking for to potential building partners so they understand what your goals are and can align with you on expectations.
Assemble your team: To make your vision a reality, you will need a land realtor, a home builder, and an A-licensed general engineering contractor. This is your team, who will help keep you on track and navigate the process of building a million-dollar home. If you choose to work with Buildable, we will provide all expert members of your team, so you will know you’re in good hands.
Find land: Once you have a vision for your custom home, you will first need to work with a real estate agent to find potential lots in your area that will allow you to execute your vision. A real estate agent who specializes in land sales can help guide you to a lot with all the features your build requires and that fits your budget.
Determine the feasibility of the land: Each potential lot that you’re considering for your custom home will need to be evaluated with your vision in mind. Some lots may not be feasible for everything you want to build into your home, so working with an A-licensed contractor, civil engineer, or land consultant to complete these checks is crucial. You will need all of these trades to work together during this phase, which can be complicated for most people. At Buildable, we employ all the experts you need for a custom home build, so we’ve got this issue covered.
Design your home: When designing your million-dollar custom home, it’s important to work with a designer who understands your taste and vision. Buildable can help you find the right designer to execute your vision, and make sure the design aligns with your overall budget. At Buildable, we have the ability to find, negotiate, and connect you with the right designer to bring your dream home to life. While we are not a design-build company, our builder will be present at all design meetings to make sure everything is on track. This way you get all the perks of design-build, but with the freedom to choose from any of the world-class designers and architects you might be interested in.
Build the home: Luxury home construction requires a builder who understands your expectations, desires, and need for quality construction. Just like anything in life, you get what you pay for, and attempting luxury construction with the “cheapest” builder will most likely lead to a nightmare. At Buildable, we’ve built homes for some of the most discerning clients in Rancho Santa Fe, La Jolla, and Solana Beach. We understand what it takes, which is why we have so many glowing recommendations and references. If you’re looking for experienced professional builders, Buildable is the way to go.
How Long Does it Take to Build a Million-Dollar Home?
Typically, in San Diego, building a million-dollar custom home requires about 10-12 months, but that only includes the construction portion of the process. The custom home build timeline also includes finding the land, designing the home, developing plans, and permitting. The inclusion of certain features can also impact the timeline and bring additional costs. Building a luxury custom home quickly is all about effective scheduling and sequencing. However, subcontractor schedules could lead to delays that are outside of your control. We pride ourselves on our project management ability and firmly believe no one does it better than us, which was proven by our ability to stay on track even through the height of the pandemic.
Why Should I Custom Build a Million-Dollar Home?
Many people ask themselves early in the process, is it really worth it to build a custom home rather than buying an existing one? At Buildable, we stress that building a custom home isn’t a route to beat the market, but instead it’s a way to get a home that is completely customized to your lifestyle and taste. When you buy an existing home, you inevitably have to spend money on features you don’t really care about, in order to get the ones you do. When you build a custom home with Buildable, every feature and square foot of the home is carefully planned out with your vision in mind. If you’re still not convinced, here are the top five reasons to build a custom million-dollar home.
A floorplan that fits your lifestyle
Building a custom home enables you to design it exactly for your needs. Don’t need a dining room? Don’t add one! Want a closet designed to fit all your shoes? Get it. Tired of all those spaces in your tract home that are too small or poorly designed to fit your family? We have plenty of experience. We know that you have a vision for the size and features of every space, and building a custom home is the way for you to get just that.
Self Expression
When you design your own custom home, you get to choose every feature, no matter how big or small. There are a million different design details that can elevate your space and give it that personal touch that you’re looking for. While existing 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.
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 any 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 significantly costly to add on to an existing home.
Less things break
As a home gets older, the natural wear and tear of living takes its toll on the space. This can quickly become a headache for homeowners as they find themselves dealing with one issue after another. New custom homes will 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 as well as financial benefits. Many of our clients find that although they are building close to double the size of their existing home, their energy bills actually drop once they move into their new custom home.
How to Find a Million-Dollar Custom Home Builder in San Diego
Million-dollar custom-built homes require a team of people with a wide variety of different skill sets, to ensure everything gets done right the first time. Buildable simplifies this process by bringing together a strategist, a real estate agent, and a general engineering contractor to guide you through every step of the process. This professional team of experts have years of experience, and all the skills you’ll need to create the custom home of your dreams.
If you plan to assemble a team on your own, you’ll need to take the following steps:
Research different builders in your area and have conversations with them about your requirements and what you are looking for. It’s important to be specific here — there are a wide number of variables when building a custom home and you end up with estimates that are wildly off if you don’t have a defined scope.
Look into different architects and designers who have created homes aligned with the aesthetic that you seek. Everyone has their own style, and you’ll want to make sure that your vision — no matter how narrow or broad — can be executed with the help of the designer.
Research real estate professionals who are familiar with purchasing land. The truth is, in San Diego, there aren’t very many agents who specialize in land or who know what to look for. It’s critical to find a realtor who is experienced in land development or you may end up paying much more than you need to.
Lastly, you will want to find someone to evaluate the land feasibility before you buy a property, to ensure that the land can support your custom home project. Zoning demands and land improvements will likely need to be met, and these costs need to be factored into your all-in budget. An A-licensed general engineering contractor or a civil engineer will be able to inform you about the land.
Remember, if you choose to work with Buildable, we have a full team of experts ready to dive in and make your dream home a reality. We will be there every step of the way to ensure that you stay on track with your budget and timeline, and that the result is exactly what you had in mind.
How to Finance Building a Million-Dollar Custom Home in San Diego
The custom home building process is unfamiliar to most people, leading many to wonder, how do I go about financing a million-dollar custom home build? In order to understand that, the first thing you must realize is that you cannot build a custom home using a mortgage — instead, you will need a construction loan. The good news is that the construction loan process is almost identical to the traditional mortgage process. The primary difference between the two is that there are additional requirements placed on the builder when you get a construction loan. If you choose to work with the team at Buildable, this difference will be negligible to you because we will handle everything on the builders’ end.
So how exactly does the process work? Typically, construction loans offer the first 12 months as interest-only during the construction of the project. This means that you ONLY pay the interest on what you borrow during the course of construction, and once construction is complete, you begin paying off the full loan cost. For example, if you have a $1M construction loan and you only use $100K on permits and lot improvements in the first month, you’re only paying interest on the $100k that you withdrew, not the full $1M. Once construction is complete, the loan can morph into a 15 or 30-year fixed-rate mortgage, and then you would pay based on the agreed-upon amount and interest rate. This process might sound daunting, but in reality it is not so different from the traditional mortgage process, even in terms of approval. If you are able to get approved for a mortgage, you’ll likely get approved for a construction loan.
Build Your Home in San Diego With Buildable
Building a million-dollar custom home takes an immense amount of time and effort, and it 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, and the result will be well worth it. 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.
