29 Sep Why Build Custom?
Houses are priced to sell, rents are on the rise, and mortgage rates are still on the low. How do you decide whether to buy an existing home or build… and why build a custom home?
Tract homes or houses that can are built in very similar styles with small variations, allow for limited customization. These types of homes are built in developments that provide built-in communities. They’re cheaper than custom homes, but as a result you will make sacrifices in your wish list being restricted by their design limits.
The primary advantage of building a new custom home is that it can be built to individual specifications. Custom homes can be made in your specific vision and changed as the building process progresses. Building a custom home you have input in every phase of the building process. This allows the builder, like Robare Custom Homes, to tailor the home specifically to your needs and desires.
While this may at first seem like a cosmetic advantage, there is potential for significant financial savings here.
The chances of finding the exact house you are looking for – already built and on the market – are very slim. With a custom home you get exactly what you want… and nothing you don’t. Many potential homebuyers don’t think about the fact that when buying an existing home, they may (and probably will be) stuck with extra space that they don’t want or need. But more importantly, they will be paying tax on it year after year.
Take into consideration a luxury 6,000 square foot home valued at $1.8M (or $300/ft). If that house has a typical 350 sq. ft. formal living room that will not be used, it would cost you roughly $105,000 at the time of purchase and an additional $2,500 per year in property taxes for that unused space.
This initial and annual added cost to a space that will go unused is one of the most powerful examples of why buying pre-owned homes may not be the best bang for the buck.
Another distinct advantage to building a new custom home is just that, it is new. All of the materials, building methods, appliances, etc. are brand new and cutting edge technology.
When buying an existing house, there is always the uncertainty of the condition of the foundation, structural integrity, quality of materials originally used, etc. These uncertainties and risks can be bypassed by being involved in the process of selecting quality materials for the structure of your custom home by using a reliable custom builder like Robare Custom Homes. Again, this may cost more upfront, but by using a quality custom builder who uses only high quality materials, those initial costs will be dramatically offset by long term maintenance costs.
Additionally, the appliances used will be new and still under warranty. No near-term need to replace refrigerators, ovens, washing and drying machines, or garage doors.
Energy standards have changed dramatically even over the past two years. By building a new custom home, you ensure that your house will be built with consideration and materials that will save you money every month.
It is very difficult to retrofit old homes to be more energy efficient. Even moderately dramatic work frequently yields less than ten percent annually in energy savings. Even these mild amendments to existing homes can cost you well into the thousands of dollars a job, factor in the number of these it would take to see even a 30-40 percent yield on energy savings, and the cost of buying pre-built really adds up.
There is also a Federal Residential Energy Efficiency Tax Credit to offset annual expenses. This credit allows for up to 30% of certain green building materials to be deducted from your taxes.
What about a modern open floor plan? Home architecture has changed significantly over the past decade. Older floor plans seldom focused on family traffic through the house, leaving many older houses feeling like a collection of rooms rather than a family-oriented space. Segmented living areas and rooms are a thing of the past.
Building your new custom home with an open floor plan allows your family’s kitchen, living, and dining spaces to come together in a design that enhances family interaction and contact. These spaces typically have many windows, filling them with natural light, warming and lighting the room during the day.
Finally, building a custom home provides some tax break incentives. Building a home allows you to write off a substantial amount on your taxes. These financial benefits include the ability to deduct interest, points and property taxes paid while the home was being built. Persons building new homes are eligible for the first time homeowner tax deduction (with certain stipulations).
In the end, there are many variables at play, pros and cons on both sides for consideration. Just remember, building a new custom home not only allows you to create your own dream home, but can be done for a comparable price.
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