Are custom homes more expensive?

The question of whether or not a custom home is more expensive than buying an existing house will depend a great deal on your own preferences and what you’re looking for in your next home, with much of the cost associated with two key factors – the size of the home and the location.

There are a number of flawed theories out there about the costs of building a home outweighing finding an existing home. In most of today’s high-priced markets, you will be greatly challenged to find many houses that won’t substantial renovations for under $150,000 (keeping in mind that this range falls much more into the realm of “affordability” than higher-priced areas).

The real price of having a custom home built may ultimately have less to do with the price difference and more to do with the sheer number of areas that you also need to consider and plan for, such as buying a lot of land. Luckily, America is still a place that has instituted a number of incentives designed to make home ownership a possibility for millions who would otherwise be renting; this environment makes it possible to access construction loans, raw land loans, and other financing vehicles that make the cost of constructing a home much more plausible than you may realize.  

You will also have to keep into account factors related to the utilities at your home, such as what your potential heating and cooling needs will be, which will vary quite a bit based on the climate of the locale where you’re building your home.

In the end, the takeaway is to conduct your research and due diligence, fully weighing all of the associated costs, before you rule out building your own custom dream home. You may just discover that it is not an unattainable goal. You can generate an estimate and a better idea of what the process entails in the Kalamazoo area by reaching out to the respected custom homebuilding team at Powell Custom Homes.