The process to build a home is significantly different than buying and moving into a pre-built home. It’s time consuming and detail focused, but at the end of the journey, you get a home that is perfect for you. Before you get started, here’s what you need to know.


1. A Slush Fund Is Essential

If you decide to build a home, your budget has to include architectural plans, supplies, and builders fees. Most companies who specialize in custom built homes can give you an estimate on those numbers. On top of that, of course, you have to budget for the plot of land, loan fees, and down payments.

While a budget is essential, it’s even more important to remember that it’s not set in stone. Throughout the project, you may end up encountering unexpected expenses. So that those surprises don’t derail the plans, you need to have a slush fund.


2. Most Custom Built Homes Start With a Construction Loan

A key difference between a custom built home and a pre-built home is how the mortgage works. When you build a house, you usually don’t start with a traditional mortgage. Instead, the bank grants you a construction loan.

That is often structured as a line of credit so that you can pay the builders and designers throughout the process. Once the home is complete, the bank then grants you a mortgage, and the construction loan is essentially converted into a traditional mortgage.


3. It’s important to Imagine Living There

When looking at plans for custom built homes, it’s easy to fall in love with a plan simply because it has a compelling feature that you like, but before making your final choice, you should always imagine living in that home.

Sketch out where your furniture would go in each room, and make sure that works for your family. You may also want to make a list of the features you love in your current home to make sure you don’t lose anything when you move into the new home.


4. Even with a Design, There Are a Lot of Customization Options

If you choose a preset home design, there are still several elements you get to customize. Some designs have optional features such as an extra side garage door. You can often choose how you want the home oriented on the plot. Inside the home, of course, you get to customize countertops, flooring, and countless other details.


5. Customization Shouldn’t Outweigh Long Term Value

When you build a custom house, you can opt for a home that is uniquely yours, but you may also want to think about the long term value of your investment. In that vein, you need to consider whether the house plan you choose will eventually appeal to other buyers.

Similarly, you may want to keep in mind the neighborhood. For instance, if you put in luxury appliances and features that are not common in a neighborhood, you may not be able to recoup their value when you move out in the future. However, if you plan to live forever in your home, you can just make it yours and not worry about it.


If you’re ready to take the next step in your custom built home, contact Passage Island Construction. We build custom homes in the Vero Beach, Florida area. You can also look at many of our popular house plans online.

Passage Island Construction