Before Building a Custom Home: What Decisions Do Customers Need to Make?

Designing a new custom home requires decision-making, planning, and risk management. At OYL Homes, we help make the home building process crystal clear from the start. We will help you build a custom home tailored to you and your preferences. Let us help open up the possibilities and opportunities your new home creates!

Before building a custom home, you need to define your building journey. Here are the top new custom build design decisions customers need to make. You should start with these budget, design, and process decisions. Keep these factors in mind before building a custom home.

Before you build, here are the top questions to ask yourself:

• What is your overall budget?

• Where specifically are the area(s) you are looking in?

• What size and style of home suits your wants and needs?

• Does construction and permanent financing work for you, and what are your cash reserves?

• What time frame are you working with? Is it flexible?

• What is your risk tolerance keeping in mind that a calculated risk can reap a great reward?

Overall Budget: Designing Your New Custom Home

The actual budget for a new build may differ from your expectations. The cost of building a custom home varies depending on your preferences. But many external factors also impact the cost of building a custom home in Maryland.

Start with determining the basics for a new home build, such as:

1. How many bedrooms and bathrooms do you need and want?

2. Add-ons and additional rooms (e.g., gaming room, garage, flex space)?

3. How many square feet do you prefer?

4. Location for your custom built home?

5. Which features, amenities, finishes, appliances, and fixtures do you want? 

OYL Homes will help you create detailed budget estimates with actual numbers. We will provide a range for the cost per square foot. Other budget items include lot prep, home design, features, and landscaping.

Your financing options also influence the design budget. Consider how a lender will view your home design plans. You might opt for design upgrades to maximize the resale value of your home. On Your Lot Homes is here to answer all of your custom home financing questions. Construction-to-Permanent Loan Advantages and Disadvantages

Is C-to-P financing right for your custom home project? Consider the following construction to permanent financing pros and cons:

Location: Where Do You Want to Build a Custom Home?

Building a custom home in Maryland is more than choosing a neighborhood. The home site needs to be well-suited to your plans. The land must be able to support your design concept.  Our Find Your Lot Checklist covers questions to review and answer in the pre-contract phase.

Finding the right home site is an important part of the home design process. Otherwise, there are likely to be delays and increased construction costs. Regulatory agencies can reject design plans. At OYL Homes, we will help you find the right site.

Custom Home Design: Choosing the Right Style, Layout & Square Footage

A custom home well-suited to your needs starts with designing the style, layout, and square footage. The layout, floor plan, and square footage impact daily living inside the home. Weigh these decisions carefully so your home delivers your preferred daily living style.

How should you design your custom home? You can choose to take advantage of the landscape’s natural features. The home site could become a part of your custom home design. You may also decide to maximize every room's functionality, privacy, or flexibility. The choice is yours. Your architect will help you to determine what suits the location.

Tradeoffs: Understand the Risks of a New Custom Home

The design process is where you also have to consider your risk tolerance. Are you interested in designing the home to match your preferences? Do you want to design the new home to maximize its potential resale value? 

There are many tradeoffs to consider. Balance risk versus reward and understand that the risks may be worth it. Keep in mind that most upgrades are more difficult to make later. On Your Lot Homes utilize data, cost projections, and comparables to guide you. We will help you with the decision-making process and provide our recommendations.

Time Frame: Building a Maryland Custom Home Timeline

What is a realistic timeline for building a custom house? Design and pre-construction can take between 9 - 12 months. For the construction, it can be up to 2 years.

What is the time frame for building a custom home and moving in? The timeline to move in can vary. You may need to coordinate the build process with selling your old home or relocating. If you have a time frame in mind for the completion, discuss these expectations with your builder.

While it is common to have delays in real estate, new builds can have additional problems. Weather conditions, local regulations, building code compliance, and supply chain issues cause delays. Working with an experienced builder minimizes project management or workforce issues.

Financing Your New Custom Home 

If you are building a custom home, you must assess your financial stability. This includes your ability to afford both construction and permanent financing. Lenders will examine your income, expenses, credit score, and debt-to-income ratio. These are used to determine if you have long-term financial capacity.

What are your cash reserves? As a buyer, you need to have enough funds to cover the down payment, closing costs, and other expenses. There are costs associated with both construction and permanent financing. Borrowers may face higher interest rates, project cost overruns, loan application fees, and other upfront costs. 

Start Your Building Journey with OYL Homes

An experienced custom home builder can help you make the right home plan decisions. Let OYL Homes guide you in building your new home within a budget. From the interiors to the exterior, we will help you choose options that are optimized for your budget.

Start the home building process today. Contact us for a guided process overview for a Maryland custom-built home. For answers to your questions, call (833) 289-6954 or reach us via email at build@oylhomes.com..