When you think of a “custom home”, you likely picture high-end big-ticket items along, expansive square footage, and expensive bells and whistles. If you are wondering whether custom home builders are more expensive, the answer is that it depends on the case.
A custom home can certainly come with all of these things. However, not every custom home is in a rarefied price range.
Eldridge Company has plenty of experience in building custom homes, and we have seen firsthand how a well-used reasonable budget can result in a custom home that reflects a client’s lifestyle, values, and taste.
The cost of a custom home depends on several key factors, and in some cases, it can be comparable to, or even less than, buying an existing or pre-designed home.
Your final price is largely shaped by your design choices, materials, and level of customization. Homeowners who are flexible with their selections, prioritize must-haves, and make strategic cost-saving decisions often see the most value in building custom.
Below are the primary factors that impact custom home pricing and how to make the most of your investment.
Square footage is one of the key metrics in buying, selling, and building homes. At the end of the day, it boils down to how much (livable) space, measured in square feet, you have in the house.
Some real estate listings and websites include finished basement space in a home’s total square footage, while others report only above-grade living space. This inconsistency can make price-per-square-foot comparisons misleading if you’re not evaluating homes using the same criteria.
Custom-home builders, on the other hand, will not do this. Instead, they use multiple listing service (MLS) standards that do not include basements and garages from total square footage. When builders refer to cost per square foot they are applying that to the structure (i.e., the custom home) itself rather than the entire property.
Eldridge Company gives our clients realistic price per square foot based on homes we have recently built. Our estimate is also based on our first-hand up-to-date knowledge of what raw materials we will need to complete the build.
The benefit of a custom build is that you have plenty of options in determining what the square footage will be, whereas an existing home’s square footage is already set. Based on our floor plan, we can calculate the price of construction costs of your future living space.
The lot you choose plays a major role in the cost and value of your custom home. At Eldridge Company, we help you evaluate whether a lot may present challenges, like utility connections, grading, or driveway placement, or offer unique advantages.
Location also heavily influences your home’s long-term value. Even if this isn’t your forever home, selecting a lot in a desirable or growing neighborhood can significantly enhance the appreciation of your finished custom home.
We always recommend that our clients divide their wish list into two basic categories: “must have” and “nice to have”.
As a heads-up, many projects at some point or other end up needing to shave one or multiple “nice to haves” from the wish list. Part of the reason is that expensive unforeseen challenges crop up in every build project, examples being weather-related delays or supply-chain issues.
Another benefit of custom homes is that you choose what to prioritize: you may forego state-of-the-art kitchen appliances in favor of an energy-efficient HVAC system.
Eldridge Company can help you budget according to your priorities, whether that’s an open-concept kitchen, energy-efficient amenities, or a family-friendly finished basement. Our design philosophy is based on alignment with clients’ wish lists.
We commit to your must-haves and work hard to incorporate your nice-to-haves without going over budget.
Framing, electrical, plumbing, and other necessities for home building involves labor costs.
Eldridge Company handles project management to get high-quality workers for good prices.
We manage the scheduling, sub-contractor relationships, permitting, and insurance.
Our online portal BuilderTrend allows clients to view schedules, plans, and specifications, while also approving selections and reviewing site photos. Overall, efficient project management can keep costs low.
Building a custom home requires an upfront investment of both time and money. Energy-efficient windows or high-end finishes may cost more initially, but they can save you on utility bills and maintenance for years to come.
Some homeowners worry that building custom could be more expensive, or time-consuming, than buying an existing home. While there is a time and cost commitment upfront, a well-planned custom build can actually be a smart long-term investment.
With a custom home, you can optimize energy efficiency, install brand-new appliances, and choose the latest interior finishes, all designed to last. You also avoid the unexpected expenses and headaches that often come with existing homes, like outdated plumbing, roofing issues, lead paint, or other costly repairs.
In many cases, the true value of a custom home isn’t just what you spend, it’s what you save by avoiding future renovations and problems.
Looking for a custom home builder in Louisville? Contact Eldridge Company today to get started.
Eldridge Company LLC, 509 Barret Avenue, Louisville, KY, 40204, United States 502-625-5565 info@eldridgecompany.com