The Cost of Custom Homes: Budgeting Tips and Factors to Consider
Keep these cost factors in mind as you design your dream home.
Making the choice to build your own custom home instead of settling for an existing home isn’t only a great way to ensure your house fits your lifestyle — it can also be more budget-friendly in the long run. Especially in competitive housing markets like Raleigh and Charlotte, existing homes in desirable areas quickly stretch budgets with bidding wars. Not to mention, purchasing an existing home can sometimes mean incurring unexpected extra costs on repairs and renovation.
Whether you’ve always dreamed of building a custom home or you’ve come to realize that an existing home in your top location won’t agree with your wallet, building custom is an excellent chance to create a living space that's uniquely tailored to your needs and lifestyle. As you create your new home, keep these budgeting tips in mind.
Define Your Budget
A well-planned budget can act as the compass that guides you through the complex and sometimes daunting process of turning your dream house into a reality. To clearly define your budget, work with personal finance professionals to determine the amount you can afford to invest in your custom home. This process should take your current savings, income, debts, and financing options into account. Determining a down payment and monthly payment limit that works for your wallet is the first step to creating a custom home that’s right for your needs.
Consider Key Factors Affecting Custom Home Costs
Tackling the building process head-first with a thorough understanding of the elements that can impact the overall cost of a custom home can work wonders for your final product — and your stress levels. The following factors play a large role in determining how much a custom home will cost:
Location: Costs can vary greatly depending on whether you're building near the city center or out toward a more rural area. Local building codes and land prices are influenced by geography, and so are supply and demand patterns. Sometimes, opting for the suburbs allows for considerable room in the budget to make other wishlist aspects a reality.
Square footage: Part of the beauty of building custom is that you can avoid paying for space that you don’t need. The size of your custom home is one of the most critical cost factors, so striking a balance between achieving the house size you’ll feel comfortable in and can afford is key.
Amenities and upgrades: Hand-selecting the amenities that will truly improve your daily life will allow you to create a custom home that both fits your budget and fulfills your needs. Opting for high-end finishes and materials will naturally increase your costs, but they can also add long-term value and durability.
Outdoor features: With its relatively mild climate, North Carolina welcomes outdoor living spaces and amenities. Landscaping and plush patios can enhance your custom home but also affect your budget. Pools, gardens, and outdoor kitchens can require significant investments.
Prioritize Your Spending
With the key budget-impacting factors in mind, make a clear distinction between essential elements and nice-to-have features. Prioritize spending on must-haves and consider adding nice-to-haves as your budget allows.
This is the stage to discern between your needs and wants. What are the non-negotiable elements that your new home must have — the amenities you’re excited about, that made you want to build custom in the first place? Where are you willing to be flexible? When the sky's the limit in terms of what’s possible to build, it’s easy to get carried away. Get clear about what matters most before diving headfirst into design and mockups.
Prioritizing these aspects and even creating a ranking system will help you avoid overstretching your finances. Especially when multiple family members all need to reach an agreement about the features they’re willing to spend extra finances on in the homebuilding process, having a way to see your priorities in black and white can work wonders for keeping everyone satisfied.
Selecting the Right Homebuilding Team for Your Needs
Building a custom home is a momentous journey financially, but also emotionally. The concept of creating a home that reflects who you are, where you can be happy for years to come, is both exciting and overwhelming. Choosing the right homebuilding team can mean the difference between a stressful process with more money spent than intended or a smooth, streamlined journey that keeps you within your goal budget. Look for a team that combines value and quality with clear communication and transparency.
At Atmos, dedicated Project Managers pave the way for constant communication and clarity throughout the entire homebuilding process. From planning for contingencies to initiating change orders during the construction phase, the homebuilding team at Atmos has the experience and the integrity to prepare buyers for all possibilities. Take care of your wallet while also creating the home you’ve dreamed of.
With the right experts at your side, budgeting for your future home can be straightforward and streamlined. Learn more about building your dream home with Atmos today!
