A common question we hear from prospective new custom home buyers is “should I buy the land first, or hire a builder and then buy the land?”
There isn’t necessarily a correct answer to this question, but keep in mind that a builder can be quite an asset in determining if the land you are considering will accommodate the your dream home vision. Let’s consider your options and see if we can help you decide what is right for you.
Buying Land Before Hiring a Custom Home Builder
Sometimes prospective custom home buyers find a lot that is absolutely perfect for the dream home they have envisioned. The lot has everything they have ever wanted, but they are not yet ready to build. In this instance, to secure the lot, you can either pay cash for the lot or buy it with a loan.
If you are able to purchase your lot first, you’ll benefit from being able to bring your custom home builder to the site to walk the land when you are ready to build. This will allow the home builder to incorporate critical aspects of the lot into your home design. Your builder be able to offer design ideas that fit your lot during your initial house plan meetings that you might not have considered.
Hiring a Custom Home Builder Before You Buy Your Lot
Often times the custom home building process is more cost-effective if you choose to hire your builder before selecting your lot. Many home builders can assist you in locating the ideal lot for your custom home build, or already have lots available where they have configured improvement costs allowing them to give you one final price for building on that lot. This can help to take some of the guesswork out of how much building a custom home will cost you.
If there is a downside, it is that the lot that you buy may not be exactly what you are set out to find, but this concession may be worth it in that you have better control over the cost of the overall project.