Are you looking to live in your dream home? Of course you are! We all grow up believing that someday we’ll live in the dream home that has everything that we could desire to make our lives comfortable. But the sad fact is that when the day comes to make a decision on where we are going to live, most of us simply make do. We determine the number of bedrooms and bathrooms that we need, and where we want to live, and then set about finding a used home that meet those criteria. However, most of the readily available homes look nothing like those dream homes that we had in our mind. But there is an alternative – hiring a custom home builder to build our homes that not only meet the physical criteria that we need for our family, but also will build to our design.

In this article we will discuss all of the advantages of hiring a custom home builder. If you have experience in building homes, then it’s likely that you will also know about hiring the building process. You will know about finding the right lot for your home, hiring the right architect to design your home building project, and hiring the right subcontractors to do the job properly. Do it right, and you’ll soon have the home of your dreams at roughly the same price as it would cost you to buy a similar used home, or maybe less. However, if this is your first time of building a custom home then you might do better by hiring an experienced custom home builder in your area. Local custom home builders have the knowledge and are experienced in building new homes in their areas and know all of the nuances and pitfalls that a new home builder may come across when dealing with red tape that they may across as they request certain permissions with the city. In addition, they will have the experience of working with homeowners like you, so will know they have to guide you step-by-step throughout the process.

The very first thing you should do prior to embarking on your project is to know exactly what you can afford. A visit to your bank manager or mortgage advisor will be beneficial. The last thing you want is to start the project and then run out of money before it’s finished. Once you know how much you can afford to spend on your project, you need to decide where you want to build before hiring a custom home builder. It makes more sense to hire a locally based builder than a national builder as it means you’re likely to save a lot of time on the fact finding side of the project since a local builder will have been through this many times, and knows the right people to speak to in order to resolve any issues that they might come across. A custom builder who is building in your chosen location for the first time, may have to spend a lot of time chasing down the right people.

Once you have found the custom home builder that you wish to work with, they will usually assign a project manager to work with you, and they will be your contact person throughout the build. You won’t have to meet and discuss anything with a local carpenter or electrician. Your project manager will be your liaison and knows the language of these tradesmen, so they won’t be blinded with science. Leave all of the worry about building codes, contractors and subcontractors, and other construction issues in the hands of him or her. Instead you can spend more time on the fun stuff such as the structural design with the architect, interior decoration with the interior designer and all of the things that will make your new custom home look like the home that you’ve always dreamt of.

If you are interested in becoming a custom home owner, then check out the home building companies in your area. As the premier custom home builder in Cape Coral, Windsor Properties, Co. is the expert when it comes to custom home construction. We have both the knowledge and experience when it comes to new home construction in Lee County. If you have a question on working with custom home builders to build your next home, then we’d be more than happy to sit down and talk with you.

Here are a few commonly asked questions that people who are looking to build custom homes ask…

How much does a builder make on a new home?

According to a survey carried out by the National Association of Home Builder1, in the fiscal year of 2017, the industry average gross profit margin was 19.0%, while the average net profit margin reached 7.6%.

Can you negotiate with a custom home builder?

Although it’s possible to negotiate a discount with a production builder, it’s highly unlikely that they will bend too much, because it could open a can of worms if they have to explain to Jim down the street why you ended up paying a lot less for the same model of home as Ray who you’ve given a 10% discount to. However, this is not the case with a custom home builder. Since the home is going to be unique to you, and in a different location to other similar models they may have built before, it’s much easier to hide costs from customers. If you can provide evidence on why a discount should be afforded, for example the price that similar houses in the area are selling for, then a custom home builder may be willing to offer some kind of discount. According to Terry Bunch, a highly rated agent with 16 years of experience in Naperville in Illinois, “While the discount you may be able to negotiate will be specific to the motivation of the builder, we are talking 3% to 5%, maybe,” says Bunch. “And that depends on the starting point and where the market is currently at.”2

How much does it cost to build a house?

The average single-family home sales price in the 2017 NAHB Construction Cost Survey3 is $427,892. The Census Bureau’s series shows the average price for new single-family homes sold increasing steadily after the Great Recession, going from $265,107 in 2010 to $356,160 in 2016

References:

  1. https://eyeonhousing.org/2019/03/builders-profit-margins-continue-to-slowly-increase/
  2. https://www.homelight.com/blog/buyer-how-much-can-you-negotiate-off-a-new-build-house/
  3. https://www.nahbclassic.org/generic.aspx?sectionID=734&genericContentID=260013&channelID=311

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About Glenn Seguin

Glenn M. Seguin is the Managing Director of Windsor Properties Co of Florida LLC. Glenn is a multiple time award winning home builder and real estate professional. Having won Best Overall in Category in 2007 and 2019 as well as Best Bathroom, Best Kitchen, Best Floor Plan in 2008, Best Exterior in 2015, Best Interior Design and Best Livability in 2019, as well as many other awards. He has built over 100 homes in Southwest Florida. Glenn is also versed in the development and management of commercial real estate.