Building a custom home is one of the most exciting and rewarding projects you can take on. A custom home allows you to create the perfect home for your needs, lifestyle, tastes and budget. But a project of this scale requires an experienced, skilled custom home builder to ensure flawless execution. Choosing the right home builder is arguably the most important decision you’ll make during the home building process. The builder you select needs to be able to translate your vision into reality while staying within timeline and budget constraints. Here’s an in-depth guide on how to find and choose the best custom home builders.
How to Find Custom Home Builders
Finding experienced custom home builders begins with asking for recommendations from:
- Friends, neighbors or relatives who’ve built custom homes recently can provide referrals based on first-hand experience working with builders.
- Your realtor likely has a list of preferred builders they’ve worked with successfully before. They’ll have insights on builders’ quality of work, strengths, weaknesses, pricing and more.
- Online reviews of local custom home builders on sites like Google or Yelp can reveal feedback from past clients on overall quality, cost, timeliness and working relationships.
- Home building sites like HomeAdvisor allow you to search for top-rated custom home builders by location. Builders provide profiles showcasing past projects and qualifications.
- Local permitting office can provide a list of builders who frequently pull permits in your area. Higher volume builders are likely more established and experienced.
- Drive through new construction areas to find model homes you like. Make note of the builders and do more research.
- Home building associations like the National Association of Home Builders have member directories you can search.
Compile a list of promising custom home builder candidates and vet them thoroughly before making your selection.
How to Choose the Best Custom Home Builder
Choosing your home builder deserves careful due diligence – after all, you’ll be working closely with them for months, investing hundreds of thousands of dollars into your new home.
Here are the most important factors to consider:
Relevant Custom Home Building Experience
See how many years of experience the builder has constructing custom homes specifically, not just homes in general. Custom home projects have unique considerations compared to spec homes or typical subdivision construction. You want a builder well-versed in the details that go into custom homes.
Ask for examples of other high-quality custom homes they’ve built in your area with similar design characteristics like size, features, or style. Experience with homes like yours is a must.
Custom Design Capabilities
Your builder should have in-house design experience to provide drawings and plans that meet your special requirements. Ask about their design process and verify they can provide complete construction plans, not just drafts.
Some custom home builders have architects and designers on staff. Others partner with independent architects to turn designs into finished plans. This expertise is crucial.
Financial Stability
While a new home builder may offer you significant savings, an inexperienced contractor may cut corners or make mistakes leading to high corrective costs down the road. An established builder with financial stability and a solid reputation has proven their commitment to quality and service.
Check for lawsuits, bankruptcies or other red flags on a builder’s record that might indicate potential issues. See how long they’ve been operating and research their track record.
Strong References and Reviews
Vet any custom home builder thoroughly by talking to their past clients. Responsible builders will gladly provide references you can call to ask about their experience. Here are some good questions to ask:
- How would you rate the quality of their work?
- Did your project stay on schedule and within budget?
- How well did they communicate during the process?
- Would you recommend them to a friend? Why or why not?
Online reviews can also shed light on a builder’s strengths and weaknesses from a broad range of customers. Pay attention to any concerning trends or weaknesses mentioned consistently across reviews.
Licensed and Insured
Your builder should be fully licensed, bonded and insured for liability, worker’s compensation and more. This protects you from liability for accidents, damage or injuries that occur on your property during construction.
Ask for copies of their current credentials and verify that their insurance policies are up to date. Some may be required to meet minimum limits depending on your area. Don’t risk working with a builder who cuts corners here.
Detailed Portfolio and Project Examples
The builder’s portfolio reveals a great deal about what they can produce. Look for examples of high-quality custom homes similar to your vision with impeccable finishes and details. This establishes reasonable expectations for what the builder can accomplish.
Some builders will have an online gallery. It’s also worthwhile to ask if you can do a walkthrough of a current or recently finished custom home construction project. Seeing their workmanship firsthand is ideal.
Proven Project Management Process
From obtaining permits to coordinating subcontractors, a custom home build involves many complex moving parts. Ask builders to outline their complete process to understand how they manage projects effectively.
Look for detailed schedules, regular communication practices, progress tracking methods, quality assurance procedures, change order processes and more. A buttoned-up process increases efficiency and reduces errors.
Itemized Price Transparency
Custom home builders typically charge a fee or percentage on top of construction costs, but pricing models vary significantly. Get quotes from 3-5 recommended builders for an apples-to-apples comparison.
Responsible builders will provide a detailed price breakdown by trade so you understand what’s included. Beware of inflated line items. Ideally costs should be fixed or “bonded” so your price won’t fluctuate unexpectedly.
Specialization in Your Home Type
Choose a builder experienced in constructing the specific type of home you want, whether it’s a luxury estate, mountain lodge, suburban family home or other specialty property.
Custom vacation and luxury home builders require expertise in sourcing unique, high-end materials and complex systems. A green home builder knows the nuances of sustainable building approaches. Seek relevant specialization.
Personal Rapport and Responsiveness
You’ll be collaborating closely with your home builder for many months, so it’s critical you establish mutual trust and excellent communication. Make sure you feel comfortable with the builder’s approach and personality.
Responsiveness during the research process also sets expectations for their communication throughout the build. Find someone who suits your preferences and style.
By thoroughly researching builders using the criteria above, you’ll be equipped to make a wise choice to construct your dream custom home. Partnering with the right builder can result in a seamlessly smooth process and spectacular finished product.
Questions to Ask a Custom Home Builder Before Hiring
Building a custom home is complicated, so you’ll want to have an in-depth discussion with potential builders before committing. Here are some important questions to ask:
How long have you been in business? How many custom homes have you built in the last 5 years?
The builder’s level of experience with custom homes specifically is crucial. An inexperienced builder is more likely to encounter unexpected issues, delays, and budget overruns.
What types of custom homes do you specialize in (e.g. luxury, eco-friendly, etc)?
See if the builder has expertise relevant to your type of home. Specific specializations like luxury estates or green building require specialized knowledge.
Do you handle all aspects of the building process including design and architecture?
Ideally the builder should have in-house designers and architects to turn your vision into finished plans and permits. If not, ask how they partner with independent architects.
What warranties and guarantees do you provide on the build?
Many builders offer a warranty period (1-2 years typically) to cover defects. Understand what’s covered if issues arise after project completion before they arise.
Can you share contact info for 3-5 recent custom home clients that I can call for references?
Speaking to past clients provides crucial unbiased insights into their quality, timeliness, communication skills and overall working relationship.
What is your quality assurance process during construction?
Look for multiple layers of oversight and quality checks during each phase of construction to ensure care is taken at every step.
How many other projects do you have underway currently?
Too many projects can stretch resources thin and result in delays or quality issues. Make sure they can devote proper focus to your substantial build.
What is your communication style during the project? How frequently will we touch base?
Frequent contact, scheduled site visits and progress updates should be expected when investing in a major custom build.
What happens if the project goes over budget? How do you handle change orders or overages?
A fixed price contract provides you cost certainty. If costs may fluctuate, understand how overages will be addressed before committing.
Can you provide a detailed price breakdown by trade so I understand what is included?
Itemized pricing allows you to understand what you’re paying for. Watch for inflated individual line items that impact overall cost.
How long will the project take from design to completing construction?
Get a detailed schedule with major milestones and understand the factors that influence timing at each stage in the process.
Use this comprehensive question checklist to thoroughly vet potential builders before selecting your partner for the custom home building process. It can help surface red flags and give you confidence in the choice.
How Much Do Custom Home Builders Charge?
Custom home building costs vary tremendously based on the size, features and complexity of your home. Location, materials, labor, permitting, utility connections and finishings all impact the budget.
That said, custom home building typically starts around $200-$250 per square foot. Here’s an overview of pricing considerations:
- Square footage – Larger homes are more expensive on a per square foot basis. Expect to pay $180-$200 per sq. ft. on homes above 3,000 sq. ft. Smaller homes under 2,000 sq. ft. run $250-$270 on average.
- Land acquisition – You must buy the lot or land before building. Land alone often runs $100k-$500k+ depending on location.
- Labor costs – Vary based on average wages in your region. Urban areas and specialized trades command higher rates.
- Materials – High-end finishes and features raise costs substantially. Luxury home materials can run costs up significantly.
- Permits/utilities – Connecting to utilities, permits and tap fees add $10k or more in most areas.
- Location – Building in high-cost urban areas or using imported materials chips away at budgets fast.
- Complexity – Unique designs, multi-story homes, high-end systems and “green” elements increase budget demands.
- Profession fees – Architects, designers and project managers add $20k or more in services costs.
- Site considerations – Challenging topography, poor drainage or soils, or brush clearing tacks on expenses.
Most custom home builders charge a profit margin of 15% or more above the base construction costs. Carefully review custom home builder contracts to understand exactly what’s included before committing to avoid budget pitfalls.
How to Save Money When Building a Custom Home
Building a custom home lets you create your dream home, but also comes at a hefty price. Here are insider tips to structure your build to maximize value without compromising on quality:
Optimize floorplan layout – Work with your architect to design an efficient layout minimizing unused spaces. This allows a smaller footprint.
Incorporate multi-use spaces – Spaces like the living room can double as home theater areas. Offices can accommodate guest sleeping space through a convertible murphy bed.
Choose structural elements strategically – Use less expensive framing methods on portions of the home not visible. Save higher costs for feature areas.
Use cost-effective foundation designs – Basements and crawlspaces cost more than concrete slab. But they offer benefits like storage and utilities access, so weigh tradeoffs.
Scale back exterior features – Limit the number of roof gables, dormers and bump-outs. They have big aesthetic impact for less cost than full 2nd stories or wings.
Buy appliances at wholesale – Avoid builder markups by purchasing brand-name appliances directly through wholesale suppliers before installation.
Partner with an eco-friendly builder – Their expertise in energy efficiency and sustainability can significantly lower utility bills. Added upkeep costs often offset higher materials expenses over the long run.
Install flooring yourself – Have the builder leave subfloors ready for the floor coverings of your choice. Install them later to avoid builder markup.
Provide your own fixtures/finishes – Supply cabinets, lighting fixtures, faucets and hardware you purchase separately. Just ensure they integrate well.
Use durable, low-maintenance materials – Choose materials like engineered quartz over marble countertops or fiber cement vs. cedar siding to reduce maintenance costs down the road.
Act as your own general contractor – If willing to self-manage the process, you can hire trades individually and buy materials directly avoiding builder markup.
Making smart design choices and tactical decisions on features, materials and project management approach allows you to build your custom dream home while staying within budget constraints.
Custom Home Building Process Step-by-Step
Building a custom home is complex, typically involving months of planning and construction. Here is an overview of the key phases:
1. Design – Work with an architect or designer to create drawings and plans tailored to your vision, lifestyle needs and budget.
2. Permits/Approvals – The builder will submit plans to your local permitting office for approval. This also involves coordinating site surveys, soils tests, utility connections and more based on zoning restrictions and building codes.
3. Site prep – Preparing the lot involves clearing brush and trees, grading, excavating for the foundation, installing utility lines, and overall readying the site for building.
4. Foundation – The builder pours the concrete slab or constructs the home’s basement/crawlspace per engineering specifications to create a structural foundation.
5. Framing – The basic structure of the home is erected including floors, walls (interior and exterior), roof, plumbing, electrical and HVAC systems. The “shell” takes shape.
6. Exterior finishes – This involves installing windows/doors, roofing, siding, decks, final utility and electrical connections. The exterior approaches completion.
7. Interior finishes – Drywall, paint, trim, cabinets, countertops, fixtures and finishes are installed to complete the aesthetics and functions inside the home.
8. Landscaping – The lot is graded and prepared for lawns, patios, walkways, trees/shrubs and other exterior enhancements to complement the home.
9. Inspections/CO – Final inspections occur to ensure proper building codes and safety compliance. If approved, a certificate of occupancy is issued.
10. Move in – The keys are handed over! You can begin personalizing the home and moving in upon construction completion.
While every custom home build follows a similar high-level sequence, timelines and complexities vary significantly for each unique project. An experienced home builder will expertly guide you through the process.
Mistakes to Avoid When Building a Custom Home
Building a custom home is enormously exciting, but also challenging. Here are some common mistakes to avoid:
Not defining budget – Failure to set a clear budget often leads to uncontrolled additions and overspend. Define budget upfront with margin for the inevitable overages.
Making emotional design choices – Trends come and go. Stick to a cohesive style aligned with your lifestyle versus following flashy fads unlikely to stand the test of time.
Choosing style over function – Beautiful but poorly planned homes cause daily frustrations. Ensure layouts are optimized for how you’ll actually live in the home.
Insufficient contingency fund – Projects often run over 5-15% on budget. Have extra funds readily available for overages, upgrades or unexpected issues.
Cheaping out on customization – Limiting finishes, features and special touches defeats the purpose of building custom. Prioritize custom elements that increase livability and enjoyment.
Not hiring professionals – Major plumbing, electrical, structural issues down the road often result from trying to DIY or cut corners on trades. Professionals prevent headaches.
Starting construction too quickly – Rushing into building before finalizing all selections and specifications leads to frustration when last-minute changes arise.
Not understanding scheduling – Custom building takes significant time. Be realistic on timelines and flexibility for delays. Rushing trades causes quality issues.
Not selecting the right lot – Soil conditions, vegetation, topography, sunlight, etc dramatically impact build difficulty and enjoyment of the home.
Not getting enough builder references – Speaking to only one or two past clients provides limited insights. Talk to multiple to assess strengths and weaknesses.
Avoiding common mistakes throughout planning, design and construction allows your dream home project to unfold smoothly, on time and on budget.
FAQs About Custom Home Builders:
How do you find a good custom home builder?
Vet custom home builders thoroughly by:
- Asking friends for first-hand referrals
- Reviewing online ratings/feedback from past clients
- Looking at examples of completed high-quality projects in their portfolio
- Interviewing multiple candidates in-depth and checking references thoroughly
- Confirming they are properly licensed, bonded and insured
- Evaluating experience building specifically custom (not just spec) homes
- Assessing expertise working in your preferred home style and features
Should I hire an architect or a designer?
Either can create the home plans, but they play different roles:
Architects conduct extensive site analysis and engineering required for permitting/approvals. They ensure structural integrity and compliance. Best for complex homes.
Designers focus more on interior layouts and finishes selection. They provide renderings and decor recommendations. Often more cost-effective for simpler homes.
Many custom builders have in-house designers and partner with third-party architects as needed. Discuss the best planning approach for your specific project.
What questions should I ask before signing a contract?
- How many other projects are currently underway?
- How much direct oversight