comparing the sale price or cost of a custom home to other existing properties or even new construction can be difficult.
the first challenge is that most existing homes on the market are the typically standard builder home on a uniform subdivision lot. for reasons including standardized floor plans and home builder volume, these home packages simply have a lower cost to construct.
in addition, the sale price of existing homes are often compared by a cost per square foot number. this cost per square foot includes intangible considerations such as perceived functionality and quality, and personal preference and taste, and tangible considerations such as value related to location, land, the cost of large acreage improvements, hard and softscaping, and in many cases, sewer and water facilities. these factors outside the actual cost of the home itself, once all rolled into one number, can make it very difficult for most buyers to evaluate a true apples to apples comparison of existing home values.
new construction is even more difficult to evaluate as a viable alternative to buying an existing property. whether a custom home or a standard builder home, land and construction costs will be increasing for the foreseeable future. the time it will take to go through the design and construction process is also a significant consideration. it’s safe to assume that more than likely, constructing a new home will take more money and more time than you planned.
a custom home offers a huge upside. a custom home affords your family maximum functionality and customization, more input in quality construction and quality materials, and unarguable, better long-term value. the challenge comes down to time and affordability.
to better illustrate a comparison between my home and a similar custom home, consider the following cost breakdown. this comparison assumes a mequon "non-subdivision" 5 acre land parcel, a home of similar size and quality, and aggressive pricing.
"non-subdivision" 5 acre home site - $215,000
mound septic system and well - $25,000
mass grading, driveway & walks, retaining walls, lanais, and landscaping - $165,000
3,766 sf custom home design and construction @ $195/sf - $734,370
1,180 sf lower level finish @ $80/sf - $94,400
total comparative cost - $1,233,770
For these reasons, I believe my property offers a buyer, like you, significant value.
…and a cool house.