Q&A

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orientation, location, outdated infrastructure, and other factors that need to be worked around or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.