Different Types of New Construction

Considering building a home? Maybe you think you already know how this process works. 1. Make a meeting with a builder in a new development. 2. Pick a layout and property. 3. Move in in a few months.

But in truth, you actually have three excellent options when you decide to build a new home!

Each option has its own pros and cons. Let’s take a look.

Three Different Types of New Construction

1. Production Homes
2. Custom Homes
3. Semi-custom Homes

Are you a first time home buyer? 

Read about the 5 things you MUST know about before you buy your first house!

What are production homes?

Production homes are possibly the most common types of new home building happening on the market today. Production homes are built in together in large numbers, or clusters, inside a newly developed community. 

Typically, a builder will be selling hundreds or even thousands of properties and will be overseeing the process of building new houses on each property. Often, these new communities are very attractive and contain a host of amenities that make them attractive, especially for families.

It’s easy to see why production homes are a common choice among new home buyers. While there are some considerations that may sway you, there are a lot of pros to choosing a production home.

What are the pros and cons of production homes?

Pros:

• It’s a start to finish process – your land and house will all be yours and you don’t have to buy them separately.
• Production homes are generally built much faster than custom homes.
• You are usually assigned a production assistant who can help you stay on budget and assist you in design decisions.
• You get to choose your lot from all available options.
• You get to choose your floor plan from the builder’s selected layouts.
• You’re moving into a completely new community — everything is new, including roads and infrastructure.
• Many new communities boast outdoor recreation opportunities such as private lakes, parks, and playgrounds.
• Many new communities are developed to include community centers, new schools and daycare facilities, and even shopping complexes.
• You are typically able to customize your home finishes and contribute to flooring, lighting, cabinetry, and appliance selection.
• You will have a warranty on the craftsmanship of your home as well as many of the finishes, furnace, appliances, etc.

Perhaps the biggest advantage to selecting a production home is that you can often get a very good price on a brand new home. Builders offer incentives which may include discounts and free upgrades. They also have excellent buying power since they are hiring contractors for bulk projects, generating savings which they can pass down to you.

Cons:

• Lot size is often smaller than custom-built homes.
• A lot of choices to make can be more stressful.
• You are locked into using the builder and his contracted partner companies for every aspect of your home build.
• You are sometimes limited in exterior options for your home and may need to select your finishes and paint colors from an approved palette.
• You may need to pay association fees to your community, which pay for community upkeep.
• You may be living with construction in your neighbourhood for years until the project is completed.

What are custom homes?

Custom homes are built singularly as a new home purchaser hires a builder. Custom homes are not typically part of a larger community. 

Sometimes, builders may be selling a lot and you can purchase directly from the locations they have available. But in many cases, you’ll need to secure your property on your own and then hire a builder separately.

This can be great if you want to build an original home on a piece of property you choose! If you already own a piece of property or have a location in mind, you’ll be able to design a home you truly love in the perfect spot.

What are the pros and cons of custom homes?

Pros:

• Your home will be completely original. Because you won’t be selecting from a community’s approved floor plans, you’ll be able to buy a design of your choosing.
• You can work with an architect to design and build your dream home from scratch.
• You’ll be able to choose almost every single detail of your home to your liking.

Cons:

• Custom-built homes can be very expensive, as you aren’t taking advantage of community incentives or builder/contractor buying power.
• If you build a home that is unique or that you designed, problems may arise during the building process which will require time and potentially more money to solve.
• It’s difficult to narrow down the price of the build.
• Custom homes can take a long time to build since your builder will need to secure many different professionals to complete the project. Sometimes, you may need to wait for a contractor (such as an electrician, roofer, plumber, etc) to become available.
• Buying the land, working with an architect, and hiring a builder are usually handled separately and can be very expensive.
• Because supplies, appliances, finishes etc. can’t be purchased in bulk, they may be more expensive than they would be in production homes.

The list of cons may be long, but there’s something magical about a custom home build that is perfectly suited to your wants and needs. Even with the lengthy process and possibly high price tag, this may still be the best way for you to get the home you’ve always wanted.

What are semi-custom homes?

A semi-custom home build is a hybrid of the production home model and a custom build. In this model, usually the floor plan is predetermined by the builder, but you typically have some control over the home’s interior and exterior finishes. 

This type of home build may occur if a builder has begun a building project and the sale has fallen through, if you are purchasing in a community where some homes have started being built without a commitment from a purchaser, or if an existing custom build isn’t completed and the owner decides to sell.

It’s a less likely scenario, but it does happen. 

What are the pros and cons of custom homes?

Pros: If your home is in a builder’s existing community, you’ll have most of the benefits of a production home build, plus:

• The process of finishing your home will likely be much faster than any other home build type.
• If your home is being built in a community, you may be able to take advantage of excellent pricing and incentives.
• While you won’t be able to make as many customizations, you may experience a simpler, smoother building process, since you won’t have as many decisions to make.

Cons:

• You’ll have no control over the layout of the home.
• You’ll have less control over the exterior finishes of the home.
• Depending on the location, you may not be able to take advantage of buying incentives.
• If the home is a pre-existing custom build, you may have many of the same disadvantages.

Which home type is best for you?

The best way to know is to tour some communities and even speak to some builders so you know what’s available. Not sure where to begin? We’re the experts! At Justo, we’re able to help you find the perfect home building project for you and your family. Give us a call to talk about your needs and we can point you in the right direction.