With few listings for homebuyers to choose from, some people are breaking from the pack and trying a different route.

Building a custom home can seem like the perfect way to get around the housing shortage.

First, you find some vacant lot, then build the home of your dreams. However, as with most things in life, it’s never that simple.

In Canada, there isn’t just a shortage of houses to buy. Vacant land is also at a premium. Even when you find a suitable lot, you have a mountain of red tape and bureaucracy to navigate to get the permits that allow you to build.

Once you’ve secured the lot and the permits, it could take up to two years to complete your home.

However, if you have the time and the process doesn’t faze you, there are many benefits to building a custom home.

The Beauty of Custom Builds

First of all, you get your choice of everything. You can work with your architect to customize everything exactly as you want it. You decide the style of your new home, how big it will be, how many bedrooms it will have, and what kind of windows you want. 

Another benefit of a custom build people rarely think about is how much healthier it can be. Your new home is virtually guaranteed to be free of every trace of asbestos, lead or mould.

How much will it cost to build a custom home? 

Typically, building a custom home costs more than buying a resale or pre-construction. You’ve got to factor in the cost of purchasing the land, getting the permits, hiring a builder and the cost of raw materials.

As with all major projects, you should expect additional hidden costs. 

• Every time you ask for a change, no matter how minor, the price will increase. Each change can also push back your completion date, also resulting in higher costs due to increased labour. 
• Depending on the area, you may need additional environmental permits to protect wildlife habitats.
• Inflation costs. As the prices of raw materials go up, so can the price of your house.
• Site costs. If the building is delayed for any reason, you may be required to pay extra for site fees and security fencing.
• If your build takes longer than expected, you may need a short-term rental until you move in.

And of course, don’t forget about the finishing touches that make your house a “home.”

You’ll need furniture and fixtures that the builder doesn’t provide. You’ll want some landscaping to improve the outside appearance of the home.

Tips to Ensure your Custom Build Goes According to Plan 

For a project as significant as building a home, expecting everything to be perfect isn’t realistic. However, you can avoid major disruptions and delays by doing your due diligence before you start. 

Research your builder and designer carefully

A quick Internet search can tell you much about a builder’s reputation and experience. But dig deeper. Email the company with any questions you have. If they respond promptly and professionally, call for an in-person appointment to learn more about their service. 

Pad your budget and your timeframe 

Before signing anything, you’ll want to be sure of your financing. It’s always wise to get a pre-approval from your bank before going too far with your design plans.

If selling your house is essential to help pay for your custom build, you’ll want to know how much you’re likely to get. We do offer free home evaluations here.

Read the fine print 

Some builders work directly with an architect, meaning the design cost is included. Others use third parties, and you may be expected to pay extra. Before signing your contract, make sure you know everything that’s included in the builder’s quote.

Prepare for the unexpected 

Even with diligent planning, setbacks can happen. Labour shortages, raw material delays and unprecedented rainfall can sabotage even the best builder’s efforts to complete your home on schedule and within budget. It’s important to be prepared for every situation and have a backup plan if your move-in date gets delayed.

Building a Custom Home Vs
Buying Pre-Construction

If you decide that the cost and involvement of building a custom home is too steep, there is another option. There are many new developments in the works in the Quinte West area. If you buy now, you can secure a beautiful new build for much less than the cost of a custom home. 

Of course, buying a pre-construction may have some drawbacks.

Here are some critical facts to remember when deciding between a pre-construction and a custom home.

• The structure of a pre-construction unit is more rigid, with less room for customization. This can result in a “cookie-cutter” design that is unappealing to some buyers.
• What you see in a model home is not necessarily what you get. Every single upgrade costs more and can start to strain your budget.
• Homebuyers often forget that HST applies to new-builds, and you will have to factor this cost into your budget.
• Because of the land shortage in and near the city, you may not get the area you want.

Now that you know the downfalls of buying pre-construction, let’s look at what makes them a great option for many homebuyers.

• You’ll enjoy the same modern appeal as a custom build at a much lower cost. 
• The prices are set. You’ll have no bidding wars to worry about and no red tape or permits to navigate. The developer has already handled everything for you.
• Your heating and cooling bills will be lower because a new build uses the latest technology and superior insulation.
• Brand new homes are stylish and spacious, with a high resale value.

Should You Use A Realtor®?

With pre-construction or custom build, you can work directly with a builder. However, be aware that the builder is always looking out for their interest, not yours. A Realtor® with experience in construction will work to protect your interests. They will make sure you understand all of the contracts and make sure you know what is happening throughout the process. 

Don’t Forget to Plan your Celebration!

With all the stress and planning that goes into building and moving into your new home, it can be easy to overlook the positive. Just imagine how thrilling it will be to turn the keys into your house for the first time! Your home is brand new to you, and moving day is a great reason to celebrate this incredible milestone!

Do you want to know more about building a home or buying pre-construction? John-Ross Parks of The Parks Group is the former president of the Quinte Home Builder’s Association and will be happy to hop on a call to answer your questions.