Custom Home: Dream or Drag? The Downside of Buying a Custom Home

Buying a Custom Home, a home uniquely designed to meet your specific desires, is what most new home purchasers dream of. In a world flooded with communities resembling cookie cutter clutter, buying a custom home seems like the answer to a prayer. While the idea of owning a one-of-a kind custom home seems like bliss, it is no small fete. In today's soft real estate market, purchasing a custom home has a downside that may change your view of buying custom. Following is a list of drawbacks to consider when purchasing a custom home.

COSTS
Cost vary according to what part of the U.S you live in however purchasing custom home is more expensive buying a new home. The average cost per square foot for new homes ranges from $125. to $225 dollars per square foot according The National Home Builders Association. To build a custom home the range starts around 250 dollars a square foot and escalates depending on amenities.

Also when you buy a custom home there is more cost upfront. Fees for permits, soil testing and other inspections can cost you thousands of dollars before you even have useful set of blueprints. If you looking buy a custom home get ready to spend a $1000 dollars in just appraisals. Custom homes require three to four appraisals and inspections during the course construction. A new home just requires one of each.

FINANCING.
In today's market construction loans are almost non-existent in conventional banks. Crystal Johnson a mortgage consultant with Wachovia Bank says the days of stated income are long gone. Johnson says Wachovia Bank is one of the few banks that are still do construction loans however their guidelines are very strict. "Credit scores not only have to be close to perfect the customer should have a considerable about of assets to even be considered." Regardless of whether you use a bank or a credit union be prepared to fill out a lot of paper work that may require up to ten years of history.

TIME
From the start of the dig to the finish a custom home may take 18 months. If you are one to change your mind like the wind, the wait may not be worth it.

PLANNING
Buying a custom home requires a lot of patience and planning.

First you need to come up the list of all that you desire and shop for an architect that can put it all in a language builder can understand. Finding a location, and then shopping for a builder. This is the easy part.

DEPRECIATION
In today's real estate market most custom homes are not keeping their value. Johnson says custom homebuyers can expect resell value to immediately fall 15 to 20 thousand dollars before the ink is dry on the paper work.

OPTIONS
There are alternatives to purchasing a custom home. The most common options will save time and legwork. The most popular is a spec home. The least attractive is the tract home. The main difference is the level of choices available. The tract home or cookie cutter is found is a community of identical homes built on small parcels of land. The buyers choices are limited to minor options like paint color. The spect home is a few steps up from the tract home. The spect homebuyer usually has several home designs to choose from. It affords the buyer more variety in lot sizes, elevations and floor plans to choose from. Also, the spect homebuyer can expect more design input. The buyer of a spect home buyer can often choose the number of bedrooms, grade of cabinetry and floor surfaces.