Build Your Dream Home: Choose Custom, Go Spec or Opt for Pre-Sale
Embarking on the journey of building a home can be exhilarating! But, it's crucial to understand the paths you can take. Let's break down the three primary options: Custom Build, Spec Home, and Pre-Sale, along with their financing intricacies and timeline differences.
LTB Construction’s Pre-Sale opportunity in The Village District
Building a Home
So you’ve decided that you want to build a home! The build process is not for everyone, it is very time consuming, can be quite expensive, and is a lot of work that most people do not wish to take on. However, if you have the right team in place (builder, architect, interior designer, real estate agent) it can be an exhilarating experience. But, it’s crucial to understand the path’s you can take. Let’s breakdown the three primary options: custom build, spec home, or pre-sale along with their financing intricacies, process & timeline differences.
Custom Build - Tailored Dreams
What is it: A custom build is your personal canvas. You have the freedom to design and build your home from the ground up, tailoring every detail to your taste.
Financing: This option typically requires a construction loan, which is a short-term loan that converts to a traditional mortgage after the construction is complete. You'll need detailed plans and a budget, and payments are often tied to construction milestones. These loans have different requirements than a conventional loan so be sure you have spoken with a lender that specializes in these loans.
Process & Timing: Custom builds are the most time-intensive, often taking a year or more. The process involves working with architects, builders, and sometimes interior designers. It's a journey of decision-making, from floor plans to finishes.
Each path offers its unique blend of customization, timing, and financial considerations. Whether you desire a home tailored to your every whim, a quick and hassle-free move-in, or the excitement of being part of the process from an early stage, there's an option that fits your dream.
SPEC HOME - MOVE-IN READY MAGIC
What is it: Spec homes are built by developers or builders with a general market appeal in mind. These homes are constructed without a specific buyer, offering quicker move-in times.
Financing: Financing a spec home is similar to buying an existing home. You'd typically secure a conventional mortgage, and the process can be more straightforward as the home is already built or near completion.
Process & Timing: The timeline for a spec home is shorter as the construction starts before you enter the picture. It's ideal for those who want a new home without the wait or decision-making process of a custom build.
Pre-Sale Early Gets the Worm
What is it: Pre-sale homes are purchased before they are built or completed. This option can sometimes offer customization choices, but not to the extent of a custom build.
Financing: Similar to spec homes, pre-sales often require a conventional mortgage. However, a deposit is typically made during the pre-construction phase, and the balance is paid upon completion.
Process & Timing: Pre-sale homes can have varying timelines, usually less than custom builds but more than spec homes. This option allows you to lock in your home early, often at a more favorable price.
CONCLUSIONEach path offers its unique blend of customization, timing, and financial considerations. Whether you desire a home tailored to your every whim, a quick and hassle-free move-in, or the excitement of being part of the process from an early stage, there's an option that fits your dream. Having an agent that understands the construction world is imperative to help guide you through the process to ensure your needs & goals are being met from start to finish.
Ready to explore building a house? We have all of these options available and can match you with the right opportunity and/or builder. Make your move to your new home send us an email or call/text 919.273.5051 to schedule a new build consultation!