Homeownership seems to come with some amount of uncertainty attached to it. We’ve found that some uncertainty can be demystified and better understood by doing your homework and asking the right questions.
And if you’re currently searching for a new home, one of the most clarifying homeownership questions you can ask yourself up front is, “instead of buying an existing home, should I build my own?”
If you’re presently reading this, you already know our answer. We’re also fairly confident in what your next question might be, “OK, but how much is it going to cost?”
We’ve done (most of) the homework for you. Read on with us as we show you how to ask better questions and provide you insightful answers towards calculating your homebuilding budget.
Is building a custom home more expensive than buying an existing one?
We’ve been asked this question many times. The better question might be what type of custom home are you considering? Construction costs from start to finish can change dramatically throughout the process. With an understanding of how to control or limit the factors that cause delay or might even break your home budget, along with proper planning, and a mindfulness for the home building process, a custom home can be an extremely cost-conscious and rewarding experience with long term savings that can make it more affordable than purchasing a pre-built one or remodeling an existing home.
What’s the first step in figuring out my home building budget?
A better question might be, where am I planning on building my new home?
You can’t build a dream home without the land on which to build. And purchasing a plot of land can carry different cost implications depending on whether you’re…
…purchasing an existing or planned plot in a new residential development.
…planning to buy an existing house, tear it down, and build a new home in its place.
… buying an existing plot of land that is zoned for housing in a location of your choosing.
First, we’ll need to factor in site work. In the simplest terms site work includes a whole category of tasks needed to make a plot of land suitable to build upon. Site work typically commences after your loan closing and all permitting is completed.
If the plot has no existing infrastructure for plumbing and utilities, you will need to put an additional part of your budget into preparing the site for these essentials. If you have a basic plot of land, it needs to be cleared of plants and trees before we can dig the foundation. Land with challenging topography (i.e., rocky ground, heavily wooded, steep grading) might need to be leveled.
In short, buying a plot of land in an existing development that is already prepped for new construction is usually the most affordable option for site work. While fully demolishing an existing home and building a new house on the lot can be the most expensive. Ultimately the decision is a balance of what is most important to you between ideal location, cost, and land availability.
Can I save money by going to an architect?
On the surface this may seem like a logical way to keep costs down but take it from over three decades home-building experience, it could end up costing more in the end.
The design and planning process is one of the most precise and exacting phases of construction. A team of skilled professionals blueprint every corner of a home’s design.
Working with a custom homebuilder like Schumacher puts attention to detail at the forefront of the planning phase. Our dedicated staff of design professionals partner with the some of the country’s leading architects. We strive to be always on trend, relevant, and cutting edge.
We understand building a custom home should be a flexible and fluid process. We understand how ideas evolve; when working with design professionals like ours, we recognize the desire to modify and add on. Check out any one of our house plans, there’s something for every lifestyle and living arrangement, but that’s the beauty of a Schumacher floor plan. Maybe you love the open space of one floor plan, but the master bathroom doesn’t include all the amenities you desire, or you wish one of the great rooms had a smaller, dedicated space for an office? Updating a floor plan is easier than changing the design once the house is under construction. With us, you start with one of our house plans and can change as much or as little as you like.
In the end, proper planning around your home’s design could be a “make or break” budgeting factor.
What about common types of home foundations?
Next to having a desirable plot of land and a professionally drawn plan, one of most important considerations in a home building budget is a solid foundation.
A common but partial misconception is that a home’s foundation is dictated by homebuilder preference or solely by which region of the country you live in (specifically a basement). In some instances, it’s not desirable to build a basement like in earthquake-prone areas or in areas with extremely damp soil or high-water tables.
The reality is there are a variety of different foundations that may be right for your home depending on where you’re breaking ground. The most common include basements, crawl spaces, and slab-on-grade foundations.
Calculating the cost of this portion of the budget can be affected by your floor plan’s square footage, the type of foundation and soil quality. If you’re building in an area with poor soil quality or steep grading, you may have to pay more for excavating.
Keep in mind that a 2,000 square foot ranch-style home will require a larger foundation than a 2,000 square foot two-story house. That’s because the ranch foundation is needed for all 2,000 square feet on a flat area whereas the two-story home has multiple areas above the same foundation space.
Recast this question by asking: what type of foundation will best suit your home’s design and plot for the many years ahead?
Why does framing cost so much?
When building your dream home, if a plot of land and a solid foundation are the bedrock of home construction, the frame of your house is its backbone. If you take this view, then it makes sense from a budgetary standpoint why framing, that is the process by which your blueprints come to life by material and structure, is the most expensive part of actually constructing your home. It should be, it’s your home’s skeletal framework so it requires an abundance of high-quality materials (mainly lumber) to create a home that’s structurally sound and built to last.
Framing also requires a skilled level of craftsmanship: every measurement in the framing process is critical since you will be laying down beams and other components that are responsible for structural integrity. It requires a calculated and precise process with lots of attention to details by dedicated professionals who are fluent in the most current and necessary engineering codes and standards, and who don’t cut corners.
How much towards connecting utilities?
It’s not an exact science, but anyone looking to build a custom home should account for a decent part of their budget towards major systems and hooking up utilities like sewer, electrical, HVAC and other plumbing. These systems will keep your home running smoothly at the pace of everyday life.
If you’re building on a new plot of land with no existing infrastructure, account for more of your budget towards these items. If your new home’s plumbing or electrical systems need to be connected to municipal systems, ask about additional restrictions and requirements that may not have cost implications but will still need to be factored into consideration.
Do interior finish choices save money in the long run?
Interior finishes include everything from light switches to flooring to the faucet in the farmhouse sink you’ve always wanted. Many of Schumacher’s customers describe the interior fixture selection process as one the most creative parts of building custom. It’s here, on a choice-by-choice level where you can personalize, everything and infuse your personality. It’s also one of the places you can marry form with function.
This is something you’ve probably spent a lot of time thinking about and envisioning how to create the most beautiful home possible for everyone to see each time you have visitors. Our Included Features, in every home we build, already give you gorgeous and durable flooring, countertops, cabinetry, sinks, and other finishes. High-quality, long-lasting materials retain a timeless elegance in appearance with less need for repair or replacement. And you may choose to make additional upgrades for items that are important to you and your family so interior selections can play a major role in your budgeting.
How can I be cost conscious about exterior finishes?
The same advice goes for outside. High-quality building materials used by reputable builders like Schumacher Homes last longer, even against moisture and sunlight. Siding or stonework, roofing, exterior doors, and windows serve equally in functional and stylistic capacity. They can play a major role in energy efficiency, curb appeal and so much more.
And if you’re building in a community or neighborhood with a home owner’s association, you’ll need to be well-versed in the bylaws to adhere to any exterior finishing codes or standards. Some HOAs have regulations that restrict colors, building materials, and even landscaping. Keep these in mind when selecting your exterior’s style and finishes so you don’t have to update later.
Durable, energy-efficient materials outside can also help insulate your home more effectively, saving you money on heating and cooling costs. You’ve probably heard the role windows play in insulation and lighting; thoughtfully-placed windows throughout the home help heat indoor areas in winter while providing abundant sources of natural light. Good for plants, pets – people too.
Beyond personalizing customizations to doors and windows, make sure to budget for exterior finish upgrades like siding or stonework that might be pleasing to your eye. Our standard Included Features have been selected because they look great and can stand up to the weather patterns in your area. Extreme heat and cold, hailstorms, and intense sunlight all have the power to wear out your siding and shingles. Ask your New Home Consultant about why we only use materials that can withstand your area’s most extreme weather conditions so you will save money later when you won’t have to repaint or repair as often.
Can we predict the future?
Last time we checked (quite recently) the answer to this question is no. But with a custom home, can you thoughtfully budget? Last time we checked that answer is yes. Once you’ve broken ground and begun to build, your house begins to take shape. You might start visualizing other features to enhance your home as you go. Even as the foundation is set, you might look at your backyard area and decide there’s ample room to accommodate a swimming pool or an outdoor kitchen for entertaining. As with any major financial endeavor, it’s always a smart rule of thumb to hold part of your budget back for the categories of the unknown. Inspiration or unforeseen issues may strike when you least expect it, that’s why careful planning and stowing away a portion of your budget to the unexpected might not guarantee future proofing your home but probably is the next best thing.
It’s why we’re in business.
Building custom homes at affordable prices is more than just our passion, it’s the reason we got into this business to begin with. It’s the Schumacher difference. If you’re wondering what the next step is, a better question might be, where’s the nearest design studio? We’re ready to tackle your toughest quandaries and make any home building dream, a reality. Come visit us today!
About Schumacher Homes
Schumacher Homes, based in Canton, Ohio, is America’s largest custom homebuilder, with operations in 26 locations in 12 states across the country. The National Housing Quality award-winning company has built over 20,000 homes, customized to fit each family’s lifestyle, since its founding by Paul Schumacher in 1992. Schumacher Homes takes each customer’s inspiration and gives it a home. Each Schumacher Homes location includes a one-stop shopping design studio and model homes displaying the latest in architectural and product trends.
