If a cookie-cutter home is not your idea of the American Dream, you might want to look into a custom home. A custom home is one that you plan yourself, with your lifestyle and design specifications in mind.
Building a custom home requires preparation, however, so it’s important to learn just how the custom home process works, according to the National Association of Realtors. Below are three things you should know when building your custom home.
1.Get your financing in order. You’ll need to finance your purchase of the land, as well as obtain a construction loan, which typically requires a down payment of 20 to 25 percent, says NAR, which adds that you’ll also need insurance during construction. Plan for 10 percent more than your total cost, in order to cover any unexpected additions or expenses, advises homebuilding expert Bob Vila.
2. Find your builder and architect. Some construction companies can take care of the design and building. Interview them first and check references, as well as visit the sites of their previous work to determine if the quality is acceptable to you, notes NAR.
3. Find your building site, if you don’t already own it, but check out the neighborhood before you buy, making sure your chosen home fits in with other dwellings. Important — if you have children, also check out the quality of the school system. If you own your site, meet with potential builders and architects to determine whether your home plans will work at your chosen site, advises NAR. Your builder should walk the property with you and determine how much pre construction work is required, such as the placement of utilities, a septic system and a driveway.