How Much Does A Custom Home Buider Charge To Build A Home?

HOW MUCH DOES A CUSTOM BUILDER CHARGE TO BUILD A HOME?

Well, that depends......

There are quite a number of factors that go into pricing a custom built home in the Orlando area.

How big is the house, front porch, lanai, living area and garage? The larger these are the higher the price.

Does the house have a tile or shingle roof, pool enclosure, swimming pool? Does the price include the building lot?

If you already own a lot, how big is it? The bigger the building lot the more sod, landscaping and driveway required.

Do you want to live in a community with a Home Owners Association that has ridged covenants and restrictions? Some require $125,000.00 window and door packages, other do not.

Are we talking Home Depot plumbing fixtures or something much different?

What kind of interior finishes do you want?

So the answer to the question, how much does a Custom Builder charge for building a home is a wide open question. What would you like to spend? Orlando Custom Builders normally charge $150 per SF of living area to $350 per SF.

Perhaps, it's better to ask, how do I get the best deal when building a custom home?

Building a Custom Home is something new for most homebuyers. How do you wrap your arms around this complicated process to make great choices and not over spend?

Design Build!

1) Interview 5 or less builders that you have researched thoroughly.

2) Select one of the Custom Builders to work with.

3) Use the Architect and Interior Designer he recommends.

4) Have "Selected Builder" produce "Scopes of Work" that detail exactly, what you want included in your home.

5) Using Scopes of Work and Completed plans, Selected Builder provides final pricing.

6) Submit Scopes of Work and Plans to 2nd choice builder for a check price.

7) Select Builder to construct your dream home.

Interviewing 5 Custom Home Builders will provide you with enough information to make a great decision. Don't overly focus on the price per SF as this number is going to change as the plans and scopes of work are developed. The price per SF number just needs to be in the ballpark of what you want to spend. You can count on this $/SF number increasing!

Select one of the 5 builders to work with (see Blog post, "How to Select a Custom Home Builder")

Using an Architect the Builder recommends will insure the Architect is qualified to design your dream home and since they are use to working together the process will be smoother. The two of them will work out many issues behind the scenes that you won't have to be involved with. The Builder will help keep the final cost in check and make sure the Architect doesn't design something that can't be built in the field or will be high maintenance.

Have the Builder's, Interior Designer help you specify all the pieces and parts you want included in your dream home.

Don't forget to ask your Builder's, Realtor for their opinion of your plans and specification. After all, one day you will want to sell this palace and it will be too late then to fix floor-plan defects.

The Scopes of work will specify all the building elements and the Interior Designers specification package will provided all the other details, from columns to flooring and appliances. Everything should be included at this point or contain an allowance amount if a final decision hasn't been made. The fewer allowances the better, as you want your Builder and team pricing out a complete package.

Now that the plans and scopes of work are fully developed, your selected builder has a complete vision and so do you. He has bid out the project with his team of suppliers/subcontractors and able to tell you exactly what your dream home will cost.

Submitting the fully developed plans and scopes to your 2nd choice Builder will give you the piece of mind that you are paying a fair price for your home. When you hand him the bid package, make sure the 2nd choice builder understands that no substitutions will be accepted and that all you want him to do is fill in the line that says, price. All the variables between Builder 1 and 2 have been eliminated. This is extremely important, receiving multiple bids with different variables will not allow you to compare apples-apples. Believe me, no matter how capable your are, if the variables are different between the two builders you'll never be able to determine which one is providing the best value.

Make your final Builder selection. By this point you have spent months with your 1st choice Builder. You've had an opportunity to see how he works with you and his team. Do you want to spend the next 12 months working with him? This Builder has spent months working with you and invested a great deal of time and money. Even if you are paying Builder 1 for his time you aren't really compensating him enough for all the help and guidance for the previous months. The fair thing to do is sit down with him and review the two competing bids together. 

If your 2nd choice Builders, check price, is lower, now you have a tough decision. This Builder is a relative unknown entity, as you haven't spent  months developing plans and specifications with him. Perhaps, he's not seeing the project as clearly as Builder 1. After all, Builder 1 by now knows your project from "soup to nuts"'. If you have any doubts, choose Builder 1 as he's the safest bet. He's spent months earning your business, he deserves it!

Remember there's more to consider here besides price.

How to select a custom home builder....

Hi I'm Michael Mcguffie

President of Regal Classic Homes since 1988 and Licensed by the State of Florida since 1980

Over the years I've found:

You can pay people to work for you but you cant pay them enough to give you their heart. They either have that capacity or not. Paying more for their heart only throws good money after bad. 

Select a Builder that will put their heart into constructing your dream home.

Hiring a builder is like selecting a spouse. 

Why do good marriages and building relationships go bad? 

Is it because they are bad people or just a difference in values, communication and problem solving skills?

Select a Builder that mirrors the attributes you admire. 

Your Builder is somebody you are going to spend a great deal of time with over the next year or years. Sometimes it takes months to develop building plans, a year to build your home, another year of warranty and more if you need help with a future issue.

Having a good relationship with this person is going to be really important to you.

Your first meetings are like dates. Does your Builder:

Show up on time? 

Take detailed notes? 

A good communicator? 

Follow up afterward with meeting notes? 

Do what he says he is going to do? 

Helpful or just focused on signing the deal? 

Is he patient?

Is he somebody you want to have a relationship with? 

Is he married, in a long term relationship or is this his 4 th marriage? 

Look carefully at his close building team:

The Interior designer, Architect, Realtor and site superintendent. This is the group you will be spending most of your time with.

Who's really building your home?

Does your builder construct your home or does he use a site manager. If he does, what is he like? Does he have the same skills you are looking for in a builder?  

Is the site manager even licensed?

If your builder is also the same person that will be constructing your home and you like him, that's a big plus. A streamlined communication channel means a smaller chance of communication breakdowns. He sells you the home, builds it and follows up with warranty service. If somethings not right you know who's responsible.

It's all about the relationship!

  A period of many years. 

  Your Builder will want to show your home to potential clients. 

  You will want your Builders help with future home issues. 

  Your Builder will want to use you as a satisfied client reference. 

  It's about the win, win!

Many clients think the best builder is an x tradesman. I've found they don't have the skills to manage the process successfully. 

Building a home is a complicated process.

It's best to look for an organized, communicator. 

A Builder needs a solid team and an organized process. 

Stop by one of the builders jobs and speak with the trades on site. The workmen are loose cannons and will tell it like it is!  They'll let you know if the Builder is a jerk, builds a quality home or if he hasn't been paid in months.

Look for:

An experienced Builder.

State licensed.

Client references. 

Member of the Master Custom Builders Association or (MCBC). The top   35 Custom Home Builders in Central Florida.

Supplier and Subcontractor references.

Warranty.

Member of the local homebuilders Association.