Custom Home vs. Production Home: Which Building Approach Is Right for You?

There are many ways to build a home today, but the two main methods area custom home or a production home. The great thing about building a home is that it can be as simple as purchasing a production home or as custom as designing a home from scratch. In this article we will help break down the differences between the two in order to assist in deciding which building method is best for you and your family.

Deciding between these two home building options can be a very important decision, one that needs to be considered with a home buyer’s budget, lifestyle, and long-term plans in mind. Understanding the main points of each approach can help a home buyer to make an informed decision when deciding on custom home building or production home building.

What Is a Production Home?

A production home is built by a company that typically offers a selection of predesigned floor plans in a specific community or development. Buyers can often choose from several layouts, exterior styles, finishes, flooring options, and upgrade packages, but the overall structure remains largely standardized.

Because production homes are built from proven designs and are purchased in bulk from suppliers, it is typically much easier to have any questions answered and keep track of the construction of a production home. They are ideal for first-time home buyers and families. The production home builder can normally complete the home in a few months and tends to cost less than custom homes.

Here, though, we are discussing “production homes”—pre-designed floor plans offered by a builder and selected by a buyer within a specific development. Although the basic layout is usually standardized, buyers can often personalize the home through finishes, fixtures, and optional upgrades. Anyone researching new home builders in Indiana should compare what each builder includes as standard, how upgrade pricing is structured, how clearly the construction process is communicated, and how change orders are handled once work is underway.

With production homes, there are generally limitations with how much a buyer can change up the floor plan. Most production homes have pre-determined wall locations and room sizes. A buyer may be able to move a wall here or there or even add an extra room or two depending on the home’s design and footprint. However, there are many instances in which a buyer will select a production home only to find out after they have signed the contract that the home does not have the exact configuration that the buyer had thought. As a result, the buyer will then be stuck with a home that does not meet their needs. It is therefore very important for any production home buyers to pick a floor plan that will meet their needs for the next 5-10 years.

What Is a Custom Home?

Custom Homes—Built specifically for the homeowner, they can be designed with the help of an architect, designer, and custom home builder to meet almost any set of requirements. If you have a unique piece of property, specific design goals, or need to have a home built to meet certain accessibility requirements or have long-term plans for the home that others might not be able to meet, a custom home could be a good choice for you. Because of the flexibility of custom homes, however, they can require a lot of decisions along the way.

Also, because they are custom, the buyer will typically be involved in the process of designing and building the home, and that can be time-consuming and may require the buyer to make decisions along the way and make choices about aspects of the home, including design, materials, and features. In addition to the above factors to consider with a custom home is that there is typically no end to the additional expenses that could be added to complete a custom home, and some of those additional expenses could be unforeseen costs that the buyer could not have anticipated.

Because a custom home is designed from the ground up for a specific property and homeowner, it can be a good option for buyers with a unique property or with specific design goals in mind. For example, a homeowner with special needs may want a custom home designed to be accessible for them. Others may be building a home as a long-term investment and therefore want a home that will meet their needs for years to come.

While greater flexibility can be wonderful, it requires greater responsibility on the part of the homeowner. With a custom home, there are more decisions to make within the building process. Budgets for custom homes can be greater, not only because of thehigh-end finishes that may be incorporated into the home but also because of unexpected costs that can arise along the way. Such costs may be a result of design changes, site-related issues, or issues related to the selected materials and whether they have stayed within the original allowances.

A custom home can be rewarding, but buyers should be prepared to stay involved throughout the process.

Cost and Timeline Differences

Production homes are easier to price because the designs, the way homes are put together, and how homes are built are typically always the same. Some home builders may have upgrade options, but for the most part, buyers can get a solid idea of what they are paying for up front.

Custom homes vary greatly in price. They generally start out higher than production homes because of architectural work and the engineering for the home. After that the variety of materials and the design can increase the price greatly. Land prep and changes during the build also can increase the cost of the home greatly. A good rule of thumb is to have a fund set aside for unexpected costs. These can range from a few hundred dollars to thousands of dollars. There are many factors that can affect the price of a custom home. And it is hard to give a solid price until all of the details have been worked out.

When comparing the production home building process to the custom home building process, there are also many differences to note with regards to how long it will take to complete the process of building a home and moving in. A production home is typically completed within a few months, while the process of building a custom home takes longer, as there are many more decisions that need to be made as the home is being designed and being built. The time frame for building a custom home can take anywhere from 6 months to a year or longer to complete, depending on the design and the choices of materials that are selected for the home.

Which Option Is Right for You?

So who is right for a production home, and who is right for a custom home? If affordability, convenience, and knowing just exactly what you are getting are high priorities on your checklist, then a production home is the way to go. However, if you are looking for a home with a lot of personal touches and want a home that is designed to be just right for you in the long run, then a custom home is for you.

Consider how much flexibility you will really need in terms of your new home’s design, how much you will want to be involved in the construction of your new home, and how much uncertainty your budget can absorb. The most expensive home is not necessarily the best choice, nor is the home with the most possible options. The best choice for any homeowner will be the home that will best serve their needs as they live in their new home.