Custom homes or spec homes, home owner’s perception
Nine Arch Estates often receives calls from customers or potential clients who are in the process of assessing the feasibility of building their custom homes. When asked whether they have completed drawings, they either confirm they do or mention they are in the process of making them. However, some are hesitant to share the drawings but instead, inquire about the per-square-foot price to build the house.
The issue with the majority of clients is their desire to obtain a cost estimate based solely on square footage, which can be premature. While there’s nothing inherently wrong with this approach, it may indicate that clients are not fully familiar with the process or may encounter issues with their projects. Here are some pitfalls that owners of custom homes should be aware of:
1. Cost estimates depend on factors such as the size of the house, the type of drawings, and all the features, and amenities customers desire in their new homes.
2. Clients must understand the difference between a custom home and a spec home, which is built in larger numbers in subdivisions. Spec homes have set prices based on the builder’s cost and profit margin, with additional charges for upgrades or changes.
3. Customers should be open, transparent, and willing to understand the principles behind estimating a custom home project.
4. Not all drawings are the same. Designers have different styles, and some designs may be more expensive to build than others. Similarly, structural engineers may size components differently, leading to variations in construction costs.
5. Choices regarding kitchen cabinets, vanities, fixtures, trims, flooring, exterior stones, and precast or flooring and stairs can result in significant cost differences.
Therefore, customers must conduct due diligence and possess a clear idea of their drawings, features, and amenities before engaging a builder for detailed discussions. Further, customers must possess a clear mindset as to whether they are ready to build a true custom home or would like to engage a builder to build a spec home, where the builder will take charge of your features, amenities, and quality.
Conversely, if a builder provides a price without reviewing the drawings or asking pertinent questions, clients may end up spending more than anticipated or receiving homes of lower quality than expected. Both custom home builders and homeowners share equal responsibility for ensuring a smooth process.