Costs vary drastically and are based on two main aspects: Site Integrity and House Magnitude. When searching for the right property, it is important to keep in mind the opportunity cost of purchasing a parcel at a low price which might require significant improvements to maximize its potential vs buying a more expensive property that is relatively ready to go. If the parcel is on a steep slope, has environmental constraints or other encumbrances that require substantial work, the overall cost of the project will be higher due to additional site infrastructure. The cost of the home itself depends on the size, architectural style, finishes, and amenities requested. It is important to understand how various components impact a construction budget so that you can find the right balance and get accurate cost estimates.

While construction itself can usually be estimated based on the size of the home and the site work involved, an overlooked aspect of scheduling is the entitlement period. After you have refined the concept of your dream home, an architect and engineer will need to draft formal plans. Those plans are then submitted to the municipality with their corresponding applications. Some municipalities have preliminary board approvals that are required prior to applying for a building permit while others may have a more straightforward application process. Every Town has a different entitlement process which can drastically vary in timing.

When assessing the option of renovating an existing home or building a new one, several factors must be considered. Older homes have higher potential for compromised structural integrity, deteriorating materials or not being up to code, which would need to be addressed and can easily exacerbate your budget and schedule. Additionally, the existing parameters of the structure can impede your ability to maximize the home’s potential, such as building footprint, orientation, location, outdated infrastructure, and other factors that need to be worked around or modified. Also, when working with existing structures, surprises are inevitable. Whether it be higher costs due to unforeseen conditions or longer timelines resulting from more involved scopes, everything in construction is a domino effect. Lastly, the assurance of quality construction is upheld by warranties, whereas unlike new construction, it is difficult to define what areas are covered by warranties due to the nature of working with existing conditions. Overall, unless the renovation is minor in nature, they will likely always go over budget and schedule with uncertain assurances upon completion, all of which can be mitigated through new construction.

It all comes down to preference. If you are looking for a new property, performing the due diligence for the right one is critical. Sometimes builders will own properties that can be purchased either as vacant land or together with the proposed home. Some builders may offer more flexible terms to clients offering them the option to either purchase the property prior to construction or have the entire project (land and construction) financed until closing at the end.

One of the most important steps in building a home is establishing a development team. You will need a surveyor who will provide you with information on existing conditions (utilities, easements, structures, meets and bounds, etc.), an engineer who will create a site plan with project related content (house/structure locations, topography, utilities, stormwater, etc.), and an architect who will design the home (floor plans, elevations, construction plans, etc.). It is always good to ask a builder if they have design professionals they work with who they can recommend if you don’t already have one.

Unlike purchasing an existing home, building a custom home provides people with great flexibility. When developing a property from ground zero, you have numerous options. Whether you want to regrade the property with more favorable topography, enhance it with amenities or simply maximize its potential, the lack of existing infrastructure provides you with the freedom to improve the site without obstacles. Additionally, there are many future preparations you can incorporate during construction that you can finish later without invasively renovating. Simple prep work such as additional utilities for another bathroom or BBQ station can easily be installed. More advanced prep work such as having a designated shaft with aligned finished closets and footing capacity below grade can provide you with the option to install a future elevator. The possibilities are endless when it comes to factoring future features which also can help value engineer the project if there are current budget restraints. New construction will always have greater value than older homes, giving you assurance of greater economic longevity. Overall, the best way to ensure you get the home that you want is to have it tailored to your needs and lifestyle from inception to completion.

There are many ways you can finance a custom home project. It depends on your level of comfort and ability to either leverage attractive rates or utilize more equity. You can own the property and self-finance construction, own the property and secure a construction loan, or have the builder finance both the land and construction. It is all about assessing the cost of capital and the available options to do so.

This is a common question with a common answer, it varies. It starts with the size of the home, where the cost increases/decreases in proportion to the square footage. Once the relative size is determined, the architectural style and finishes of the home come into play. A 6,000 square foot home with shingle roofing and clapboard siding may cost less than a 5,000 square foot home with slate roofing and stone siding. Lastly, site integrity has an impact as well, where a level property that had an existing home on it will have much less involvement than a forested sloping parcel. It is important to recognize that there are many factors aside from the home itself that are incorporated into the overall budget, which when calculated translate to a price per square foot on a project basis.

Building a custom home is an intricate process, making the builder-client relationship very personal and meaningful. A good builder will have extensive experience across all aspects of development, not just construction. They should be able to help you analyze properties, assist in entitlements and be versatile enough to accommodate any style home you envision. Key features include a strong sense of integrity, high standards and qualified credibility all of which will ensure a successful project.