Pros and Cons of Building a Custom Home

Pros and Cons of Building a Custom HomeThere are few things more exciting and satisfying than living in your dream home. Like every major decision, though, building a custom home has its pros and cons. In this article, we highlight those that affect most homeowners.

The Pros of Building a Custom Home

Custom home builders work with the homeowner to construct a home designed to meet or exceed their standards. Not surprisingly, the advantages are numerous.

Customization and Personalization 

Building a custom home means you have control of every aspect of the house. It has your personal touch. You choose every feature and appliance of your unique home. The house’s functionality has been designed specifically for your needs and preferences.

You Pick the Location

A custom home can be built just about anywhere. All you need is an appropriate empty lot or land with access to required utilities. Custom homes can be built to use solar energy, propane, well water, and septic tank if your desired location is so remote that electricity, natural gas, city water, and sewer are unavailable.

Less Maintenance

Beyond everything being new, modern custom homes are built with low-maintenance materials wherever possible. There are no worries about plumbing, wiring, appliances, flooring, or roofing. Compared with older homes, you can expect to spend significantly less time and money on maintenance per square foot.

Less Competition

Although mortgage rates are currently rising, today’s housing market continues to favor the sellers. The lack of housing in many areas, including some parts of the Denver metro area and Jefferson County, makes it hard to find an existing property. Buyers often wind up in a bidding war that drives up the cost of the house.

In comparison, vacant lots and parcels of land appropriate for building a custom home usually generate far less competition.

Energy Efficiency

Custom-built homes are constructed from the ground up to be energy-efficient. They have a tightly sealed building shell, modern insulation, and energy-saving windows to reduce heating and cooling loss, lower your utility bills, and help to prolong the life of your HVAC system. Your custom home design can include solar panels, water-saving appliances, and energy-efficient built-ins.

The Cons of Building a Custom Home

As wonderful as having a custom home can be, there are a few disadvantages inherent to the process.


Custom homes, by their nature, take longer to build than a standard floor plan – and that’s usually longer than you’d need to buy and close on an existing home. However, finding an existing home that meets your needs and fits your budget can take even longer in some of our local areas.


Constructing a new custom home may cost more than you would spend on an existing home. However, that also means the resale value is higher than an older home in the same location. Plus, some homeowners find that the value of their newly completed custom home is already more than they spent to build it.

It’s Tough to Find a Location

Depending on what you want to be nearby – shopping, schools, parks, walking trails, etc. – you may find it hard to find a vacant lot or undeveloped piece of property. You may have to look further out or consider buying and clearing an existing home to make way for your new build.

Construction Loans Can be Complicated

Applications for construction loans are similar to a standard home mortgage but more complicated. The lender has a higher risk, since there’s no existing structure to use as collateral, so getting approved is more difficult. Exact requirements vary by lender, but in general, in return for a loan equal to 80% of the construction cost, expect to be required to make a down-payment equal to the other 20%, have a steady source of income appropriate for the amount being borrowed, a debt-to-income ratio of less than 45%, and a credit score of 680 or higher.

Experienced and Trusted

For over 20 years, we’ve been a trusted custom home builder for the Denver Metro Area and Jefferson County. The people of Prospect 30 Eight Construction are dedicated to quality, precision, and serving our clients. It’s kept us thriving, who we are, and who we’ll continue to be for decades.

Get in touch with Prospect 30 Eight Construction today to take your first step toward building an addition that meets your needs and goals. Contact us for a free consultation.