Building Your Dream Home – Custom vs. Neighborhood Home Builders in Columbia, SC
- March 03 2016
- Posted by: Adrian La Fosse
- Category: Blog
You may have to decide whether you’re going for a custom built home or neighborhood production built home. It often comes down to your needs, budget and time table. This could be pretty difficult on your part, so to help you decide, here are some important points about custom builders and neighborhood production builders to consider.
Custom Home Builders in Columbia, SCIf you already have a dream home in mind, then a custom builder may right for you. Generally the starting price for a truly custom home in the Columbia, Lexington, Irmo and surrounding areas is in the $300's though it may be possible to get in below that. Custom builders can build a one of a kind structure on the land that you own, land that you buy at the same time as you start construction on a new home or more rarely on land already owned by the builder. Homes built by custom builders offer the home buyer a choice in almost everything in the building process from the flooring to the doorknobs. Custom home builders are flexible in integrating different plans and styles to construct a home that is built to the owner’s needs and lifestyle. Aside from that, here are the other benefits of having a custom builder:
- You Can Customize Your Needs
- Budget Friendly is Possible
- Building Management and Client Relationships
Custom Home Built by Fortress BuildersImportant Note About Building with a Custom Home Builder It is very important to know that there are more upfront and ongoing costs during the construction of a custom home. Of course, there is the cost of your land or lot. You will also have to fund the construction cost. Most people do that with a construction loan. This usually requires a significant down payment and/or earnest money. Some loans will take the owned land as the down payment. If you don't own land and want to purchase it at the same time as acquiring a loan to fund the construction, there is a specialty product called a Construction Perm Loan in which you can do that. With any type of construction loan, there will be payments to be made during construction to pay for the funds used to build the home. These are interest only payments and only based on the money that is drawn during the construction as needed. The build time for a custom home could be 5 to 6 months or much longer so you'll need to budget for that. Once construction is done you can convert the construction loan into a totally new permanent traditional loan, even a VA or FHA loan.
Neighborhood Home Builders in Columbia, SCAre you a typical homeowner that wants to finish the home building in a short period of time and quite possibly a lower price tag? If you are, then you should go with neighborhood production builder. Not only will there be a lower price tag but there will be less money up front as there is just a minimal earnest money requirement (0.5% to 2% of the sales price) and no needed outlay funds during construction, unlike a custom home. The neighborhood builder funds the home's construction. A big money saver for you. Here are some items to consider when hiring a neighborhood builder to build your new home:
- Cost of Building
- The Design and Layout
- Seeing the End Result in Advance
- Time Tables
Bonus INFO on Custom Homes vs. Neighborhood Builder HomesThere is an alternative to a truly custom home or just neighborhood builder's home in the Columbia area. That is a neighborhood builder that will build their home plan on your land or lot. There is still the added expense of buying the land and funding the construction loan but the overall price will be lower because you are building their plans that are likely a lot more cost effective than creating a new home from scratch. Local examples of neighborhood builders that build their plans on individual lots are Mungo Homes and McGuinn Homes.
Built on Lot Home by Mungo Homes