Picking your new home is a daunting task. There are many decisions that go into the process from picking a neighborhood, obtaining financing, floor plans, and styles, to picking between a production builder (high volume communities) or a custom home builder.
Let's start with clearly defining the difference between a production home builder and a custom home builder.
A production builder builds a community of homes from their own selection of floor plans, They usually offer a few limited options to personalize your home.
A custom builder typically creates a one-of-a-kind home based on your needs and ideas. They offer an unlimited range of design choices, and the home is built on a single lot of your choice.
Another main difference between the two is your involvement in the construction and design process. Usually, production homes have a limited selection of colors and finish to pick from. You select your house plan from their 3-5 plans with a handful of modifications to customize the home to meet your family's needs. These homes are in developed, or developing neighborhoods where you select your lot. The cost of the lot is rolled into your purchase of the home.
Custom homes require a much more involved process from you as the homeowners. You have the freedom to work with an Architect to design your floor plan from scratch. Or some builders have a library of floor plans used in the past to provide inspiration and a starting point. Picking everything in your home from finish material and color is up to the owner, and there are no limits to the options. Most owners have land purchased for their future homes, but some builders have land available to build on.
Here is a quick synopsis of what to expect with each:
The home and land are a package
Have a selection of house plans to choose from
Customization based on the selection of styles and colors based on a set menu in different product categories.
Lower cost per square foot to build due to their ability to buy in bulk.
The neighborhood developed with a specific design and cohesive house types.
As the name implies, the process of building a custom home is less scripted because there are no pre-defined choices or menus to choose from. No pre-defined choices or menus to choose from.
The homeowner selects and acquires or already owns the land
You can bring a floor plan to the builder, or work with the builder and an Architect to design the perfect floor plan.
You are directly involved in every aspect of the construction process and make many decisions to direct every aspect of your home.
Your options on products are only limited by your budget in every category.
Both offer advantages to the correct buyer and have different processes to meet each customer's needs. Consider all the options and the differences from conception, to design, to selection along with loans before making your choice.
Want to learn more about the different loans?
If you are interested in the steps to build a home, then please see our article here.