How Much Does a Custom Home Actually Cost?

Custom homes continue to increase in popularity as more people look to own a property that is specific to their needs and lifestyle. Custom homes are favorable for their unique features and design and can vary in cost. If you’re planning to build a custom home with a local contractor, it’s important to know the different factors that influence the overall price tag of the project before getting started.


One of the main factors that determine how much you’ll spend to build a custom home is the location with where it’s built. The land underneath the home is one of the main costs involved and what you’ll pay. The proximity of the land to good schools, crime rates, population, and different amenities that are available are factored into the cost of the custom home. It also influences what you can expect to pay in property taxes each year, as well as land development fees and costs.


The quality of the materials that you select while working with your builder will also determine the cost. Fortunately, you can select the quality of the materials and have control over what is installed, but this also means selecting granite countertops or wood floors can drive up the cost of your new home. You’ll need to talk to your home builder to determine what types of materials will provide you with the best value over time without breaking the bank.

Many people also don’t realize that bathrooms are known to be the most expensive room in the home because of the plumbing and fixtures that are in place to make it functional. Reducing the number of bathrooms in the house will help you to stay within your budget. The kitchen is another area of the home that is expensive to build but can still give you a return on your investment in the coming years if you plan to sell the house.


The layout and design of the custom home also impact the overall cost. One-story homes are actually more expensive to build because they require a larger foundation and cost more per square foot. Although two-story homes can be cheaper to build, they also take longer to construct. Creating a complicated layout or design for your house will increase the price instead of sticking with something simple. This will reduce the number of materials that need to be used, which reduces the cost of purchasing materials for the builder. A lot more engineering is needed for homes that have complex designs and layouts, which increases your labor costs.


The interior finishes that you select will influence the cost of the project, which includes light fixtures, countertop materials, and even the type of material that is used for the flooring. Most people want hard-wearing materials that look upscale but hold up well over time. If you prefer to have hardwood floors, opt for carpet in some of the bedrooms where there won’t be a lot of foot traffic. You can also opt for cheaper light fixtures and upgrade them at a later time.

The crown molding and height of the ceilings are additional factors to consider because they require more materials to be installed, but they can also boost the value and appeal of the custom home.


Several different exterior features should be considered with the exterior of the house, which includes the foundation. The average cost for the foundation is $8,200. This means you’ll spend more if you prefer to have the builder construct a basement. Ask yourself how much you’ll use the space to determine if it’s worth spending thousands of more dollars, especially if you only plan to use it for storage.


Additional details and features are included in the estimate you’ll receive, which includes if you want a large island in the kitchen or oversized windows to get a better view of the outdoors. Crown molding on the walls and a large porch can also add to the cost because of how many more materials need to be purchased. This also contributes to the complexity of the project, which can cause the completion date to be pushed back.


Landscaping of your new property can increase the cost of the project by $5,000 to $100,000, depending on the features you want to be installed. The complexity of the landscaping determines what you’ll pay. If you want to stay within your budget, keep it simple and don’t go overboard with the types of plants or the number of trees installed in the yard. You’ll spend more if you request edging on the flower beds or for a courtyard to be built in the backyard. Keep in mind that many of these features can be installed yourself at a later time if you’re worried about staying within your budget.


Every person’s needs vary, depending on their lifestyle, mobility, and interests. When designing your home, make a list of your wants and needs. You may need a specific number of rooms, depending on your family size. You may also need a home office if you telecommute. Consider what factors are crucial to ensure the house accommodates your lifestyle and offers more convenience. Although it may add to the cost, it will ensure the house is worth living in over time.

By getting an idea of the different variables that contribute to the cost of your custom home, you can plan accordingly and avoid surprises when writing out a budget and working with your home builder. Adjustments can always be made in advance to ensure you can build a custom home that fits within your budget and still offers the convenience and appeal you’re looking for before it’s time to relocate to the property.

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