From the Ground Up

4 Ways Building a Custom Home Can Save You Money


There’s always been a stigma around building a custom home, as many believe that it is much more expensive than buying a pre-built property or spec home. Also, with the rise in popularity of renovation, DIY, and home improvement TV shows and pop culture, buying an existing property and fixing it up yourself has become a common choice.

While it’s true that an older property could become your dream home with enough time, money, and expertise, you might end up spending more money than you were planning to. In some cases, you might end up spending more than if you chose to build a custom home from the beginning. Many people don’t know that building a custom home can actually save you money. Here are 4 reasons how:

1. It already matches your personal taste and lifestyle needs

One of the most common reasons people opt to build a custom home is because it already fits your personal style and lifestyle needs. You don’t have to do any renovations if you plan out the amenities you will want while you’re living in the home. You can select a customizable floor plan that a builder has already put together or create a fully customized one from scratch. Check out our catalog of floor plans here to get an example. No matter what you choose, you’ll be able to pick the exact size and type of kitchen you want, the number of bedrooms and bathrooms you want, and the design layout that will work best for you and your family. You’ll also go through
the design process, where you’ll be able to choose everything from the flooring to paint colors, cabinets, faucets, and amenities like a fireplace or built out basement. Once the home is built and you get the keys, the home already feels like yours because you have a say in how everything is built and looks. 

When you update an older home to meet your personal taste and lifestyle needs, it can require a significant amount of time and money. Most people who renovate an older home do so to update its style so it doesn’t feel outdated or out of style. This usually means paying the retail price of flooring, cabinets, appliances, and more. A lot of homeowners also want to make changes to the floor plan, usually taking down walls to create a more modern living space.

Making these changes can easily cost tens of thousands, or even hundreds of thousands of dollars. A basic kitchen renovation by itself costs $22,000 on average. If you’d like to knock down a wall to make your kitchen and living space feel more open, it can easily cost double that.

2. A custom home is move-in ready

When the building process is complete on a custom home, all you have to do is move in and get settled into the neighborhood. However, if you choose to buy an older home, the renovation process might be disruptive or even delay your move in for weeks, or sometimes even months.

It’s also not unheard of that a renovation takes longer than originally planned, and if you’re living in the home at this point, the construction process and noise can make the home almost unlivable. If it’s really disruptive, you might even be forced to temporarily move into a hotel room, which means another added cost and inconvenience.

3. Newly built homes are energy efficient

Over the past few decades, major improvements have been made in the efficiency of water heaters, kitchen appliances, heating, air conditioning systems, and much more. Additionally, building materials like windows and insulation have also been improved, which help make newer homes cooler in the summer and warmer in the winter. Custom homes with these new building materials and systems aren’t just more comfortable for the homeowner, they significantly lower your energy bill. 

On the other hand, older homes usually have low-efficiency appliances and systems, which leaves you with higher monthly energy bills. You can of course update your refrigerator or water heater to get more efficiency and lower bills, but it will cost you hundreds of dollars and a lot of time before you start to break even.

4. Renovations and DIY projects can cost more than what you budgeted

As mentioned before, a custom home is ready for you to move in the moment you get the keys. And you don’t have to worry that you’ll need to shell out a few grand for renovations down the line. Everything in a custom home is brand new, up to code, and under warranty for a number of years.

However, when you choose to renovate an older home, it’s not unlikely that you’ll end up spending much more than your pre-planned budget. Sometimes the crew will discover additional problems during demolition or renovation, like faulty wiring, mold, or asbestos, all of which can be expensive to fix. Many older homes may require thousands of dollars of renovations to be made liveable, let alone to be made exactly to fit your personal taste and expectations. 

When you are first considering buying a home, the idea of building a custom home might seem more expensive. However, as we’ve discussed, custom homes can not only be less expensive, but save you money in the long run. Adding renovation costs on top of the original purchase price of an older home can easily destroy your original budget and oftentimes be very inconvenient. If you want to save money now and in the future, choose a custom home and you can get the home you really want - within your budget.

If you have any more questions about getting started building a custom home, contact us below!

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