Custom Homes
Building Your Custom Dream Home

Now that you are relocating to the Bay Area, it might be time to consider building a custom home. One good reason is that you can build a larger house with many extras at an affordable cost, particularly compared to building costs on either coast. A regional advantage is that the temperate weather allows building to take place year round. Once you meet with a few builders and review ideas, plans and budgets, you’ll get a timeframe of how long the process will take and can better determine if a custom home suits your lifestyle. Keep in mind that master-planned communities in the area also offer custom homebuilding options, which also provide you with built-in community amenities and features.

First, you’ll need to do some research. If you already have a real estate agent, he or she can help you by recommending a custom builder. You also can visit the Building Industry Association (BIA) of the Bay Area (www.biabayarea.org), click on Member Directory and select the business activity that meets your needs of finding a list of custom homebuilders. To get ideas on what style of home you’d like to build, look at magazines that include custom home designs. Also start thinking about materials you’d like to use for the exterior, which will be a determining factor on how the finished product will look.

Getting Started
When you hear the word “custom” associated with the homebuilding industry, you probably think of a one-of-a-kind home with everything you have ever dreamed, right down to the door knobs, at a price reserved for people with large, six-figure incomes. At one time that was probably correct, but things are changing.

Today, there are a myriad of custom home options and a variety of different levels of custom homebuilders in the San Francisco Bay Area. There’s still the full-time, custom homebuilder who builds a few homes each year. There are higher-volume builders who will customize a home by moving walls or adding square footage. There are even higher-volume builders who offer custom options in just a few areas of the home, such as kitchens with sunrooms or kitchens as part of the family room.

Keep in mind that a custom feature is not the same as an optional feature. Options usually are standard features that are perceived as adding value, such as built-in cabinetry, granite countertops, crown molding or finished basements. Custom features are very personal. What one homeowner likes, another may abhor. The added value literally is in the eye of the beholder. This is one reason why most builders will ask for you to pay for custom features upfront.

By expanding the definitions and boundaries of custom homebuilding, builders have given homebuyers more opportunities to build their dream homes without starting from scratch. To customize or not to customize hinges on two things: what you want and how much you are willing to spend.

How to Select the Right Custom Homebuilder
If you know what you want, have a budget in mind and do decide to build, consider the following important information to have at the beginning of the process. As part of your search to find a quality homebuilder, consider some basic requirements. Make sure the builder has an established track record and a good reputation in the community. Ask for names and numbers of other clients and call them to ask about their experience with the builder. Is the builder a member of the BIA of the Bay Area? Call the Better Business Bureau to determine if there are any complaints against a builder. Usually, a clean record is a very good sign.

Does the prospective builder offer a variety of floor plans, and do these match your expectations? That is important because choice is one of the main reasons why you’re building a custom home and not a tract house. The builder also should be able to adapt the floor plan to the topography of your lot.

Is the builder active with multiple projects? This is a good sign and indicates he has buying power, which can result in the best prices for high-quality goods. You could save money on the purchase price of appliances, light fixtures, flooring and more. Find out if the builder maintains a design center where you can coordinate your cabinetry and other options. He shouldn’t be too busy, however, that he’s spread so thin.

Look for a good warranty program. The structural integrity of your home is an extremely important aspect, and you will want certain elements of it to be covered under a suitable warranty. The builder you select should be able to service the completed home and offer a 10-year warranty program on certain elements of your home’s structure.

— Custom Builder Versus Production Builder
What are the differences between custom and production homebuilding companies? Here’s a quick rundown from the National Association of Home Builders on how to differentiate the two.

Custom homebuilders generally do the following:
  • They build on land you own. Some custom builders also build on land they own.
  • They build one-of-a-kind houses. A custom home is a site-specific home built from a unique set of plans for a specific client. Some custom builders may offer design and build services.
  • They build single-family homes.
  • They are generally small-volume builders (25 or fewer homes per year).
  • They tend to build high-end homes.

Production homebuilders generally do the following:
  • They build on land they own.
  • They tend to use stock plans, but usually offer a variety of plan choices and options.
  • They build all types of housing—single-family, condos, townhouses and rental properties.
  • They are large-volume builders (more than 25 homes per year).
  • They generally build for all price points—entry-level, move-up and luxury.

— Choose a Lot
By choosing your builder first, you get the benefit of his or her assistance as you make decisions about the lot, the architect and the financing. Have the builder evaluate the lot you’re considering and comment on its appropriateness for the home you have in mind. Working with your builder to select the right lot can help ensure that you don’t discover any unexpected problems or costly modifications that need to be made to it before you start building. Involving your builder upfront also can prevent you from overspending on the lot, building type or size of home you were planning.

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