Whether you’re a first time home buyer or home-buying pro, affordability probably has a significant impact on your decision making. While you might be under the impression that a custom home is out of your price range, you may be surprised to find out that it’s more affordable than you think. Check out our cost analysis of your “next” home options.
Potential Expenses in Renovations
Once you’ve decided that your current home isn’t suiting your needs, you still have the choice to renovate rather than move. In some cases, it is possible to renovate your existing home to create the space you need. If that is an option you are considering, you should be aware of the additional expenses you may encounter.
Labor
Unless you plan on doing all the renovation work yourself, you’ll have to budget for the cost of labor. The median cost of general contractors in the United States is around $30 an hour. Consider that project like a complete kitchen remodel can take 8–12 weeks, which amounts to $9,600–$14,400 for a contractor. With a custom home, labor is already factored into your overall price, so you won’t have to account for it on top of all of your other expenses.
Time
Renovations obviously take time. The bigger the renovation, the more time it will take. That means you’ll be dealing with contractors in your space as long as the projects last.
Structural Issues
As homes age, their structural integrity degrades. Depending on how old your home is and how long you’ve lived in it, you may be coming up on some major repair needs. A new roof, updated siding, or new windows may all add to your cost of renovation.
Permits
Renovating your home will likely require permits. You may have to pay for these up front when you apply for them, or your contractor may tack them on to your total renovation costs.
Potential Expenses in a Fixer Upper
Another option you have when looking for a new home is a “fixer upper.” These homes typically cost less per square foot than a new home but require a significant amount of work. This may seem like a bargain, but it can be very risky.
Inspections
Before you buy the home, you’ll want to have it inspected, which you’ll likely have to pay for or accommodate in the closing costs.
Renovation Costs
On top of the costs associated with buying a home, you’ll also have to dish out money for renovations. That means you’ll have to account for the labor, time, structural issues, and permits for renovating this home.
Affordability of a Custom Home
When you only look at the price tag of a new custom home, it may seem like the least affordable option available to you. After a more thorough examination, however, you’ll find that there are actually quite a few financial perks to building a custom home.
Pros
- All of the costs for materials, labor, etc. are included in the home price.
- You will have little or no maintenance or repair expenses over the next several years.
- The home is brand new, so you won’t have to worry about the integrity of its structure.
- You are getting exactly what you want, so there won’t be any need to renovate.
- You can easily stay within your budget by adjusting the size and finishes of your custom home.
Cons
- Custom homes are usually more expensive per square foot than other homes on the market.
- You generally pay a premium for the labor and materials that go into a custom home.
- You’ll have to pay for moving expenses like trucks, movers, time off of work, etc.
- Custom homes take a while to build, so you may have to make double payments (both on your current and new home) for a while.
Custom homes are likely more affordable than you think! If you’ve decided on moving forward with a custom home, contact Homes by Brill to learn more about our custom home building process. As one of Des Moines’ leading experts on custom homes, the professionals at Homes by Brill will ensure that your home building experience is both affordable and enjoyable. Contact Homes by Brill to get started on your dream home today!
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