Are you choosing between major renovations to your home and building a new home? Do you spend weekends wandering models in new home communities? Read on. Building a new custom home where you currently live can be a cost-effective option.
The total cost to build a home on your lot will be determined by the following equation:
Land Price + Site Work + New Home Construction = Total Cost
The price for land will vary greatly depending where you’d like to live. In scenic Darnestown you’ll find appropriate building lots from the $400,000s, while a teardown in a popular Bethesda neighborhood will cost over $800,000.
Site work costs can vary greatly, depending on county fees and lot conditions. With Impact Fees reaching over $60,000, and increasing costs for various services, expect your site work costs to total as much as $150,000 or more.
Here’s a sample breakdown of a total custom build of a Hampton model in Darnestown, MD.
$450,000 (lot price) + $150,000 (site work costs) + $464,900 (new home construction/Hampton model) = $1,064,900
Major renovations to your home can result in very costly unforeseen expenses. Issues can exist that are discovered only after work begins. For example, once the construction work begins, inspectors or contractors may find that your entire electrical or plumbing system needs to be upgraded. Asbestos was used in homes until 1978, and manufacturers were allowed to ship their existing stocks of drywall, ‘popcorn’ ceiling finishes, and insulation until 1980. All the asbestos needs to be removed when found. Lead paint is also a potential problem. The United States’ Consumer Product Safety Commission (CPSC) banned lead paint in 1977 in residential properties, so if your home was built before the mid 1970’s, you need to inspect for, and then remove or encapsulate the lead paint. These costs can add up quickly.
The price of homes in new communities includes a high mark-up on the land acquisition, and the site work done to prepare the lots for home construction. By removing your existing home and building on your lot, you can avoid some of the higher costs and markups associated with preparing a new lot for home construction.
At Classic Homes of Maryland, we can help you save on costs by managing your site improvement for you. Classic makes it easy by managing the process, providing you with a carefully selected list of subcontractors, and managing them every step of the way.
Impact fees are another large unseen cost to buying a new home. In some areas, such as Montgomery County, Maryland, impact fees can run over $60,000. In new home communities, this cost (and the profit margin) are already factored into the price of new homes. By building your new on your existing home site, you may be able to avoid impact fees and the builder mark up for pre-paying these fees.
Many builders offer semi-custom homes, where you can ‘customize’ from pre-selected options. With Classic Homes your choices are limitless. We have an extensive library of floor plans to start from, which is just the beginning of our customization and design process. Once you’ve chosen your model, your imagination and budget are the only limits to how that floor plan can be modified to suit your needs. Every home that Classic builds is unique.
If the plans in our portfolio don’t quite fit your needs, our design process will start with an appointment with our architect to discuss your specific needs, in order to draft and create your unique home.
Many of our customers have found that there is little difference in the end price of their custom home and the final cost of a modular home. They have found that there is a vast difference between getting their specific home built to their special desires, versus settling on a production line modular home. While modular home builders may offer some level of customization, the factory prepared pre-built nature, and the requirement of fitting the modules of a home to D.O.T transport standards are very limiting. In addition, lenders will often have more financing options available for a custom-built home than for a modular one.
If you’d like to know more about the feasibility of building a new custom home on your lot, give us a call at 301-256-4110, or fill out our information request form. Our sales team will be happy to walk you through the specifics of preparing your lot and exploring the possibilities of building your new home.