The Cost of Building a Custom Home in Dallas: What to Expect
/Luxury Custom Homes
Building a custom home in Dallas boasts a lot of appeal. It offers a sense of luxury, and it gives you complete control over how the house looks and feels.
There are plenty of reasons why you’ll want to take the plunge on it, like:
Designing a home you’ll love forever.
Making sure everything’s done to a high quality.
Meeting all of your needs and wants with the design.
Creating a dream house.
These are all worth working toward. Before you take the plunge, you’ll need to pay attention to a few particular areas. The cost of building a custom home in Dallas is one of the more notable.
Expect to pay at least $400 per square foot for a truly custom home with high-end architectural design and finishes. These figures can be a bit general for many people, and they’ll often want a much more specific answer. This usually depends on more than a few factors, so it can be difficult to give an exact figure. There are more than a few ways to narrow it down, though.
Let’s dive into everything you need to know about custom home pricing in Dallas, TX.
Average Cost of Building a Custom Home in Dallas
The cost of building a custom home in Dallas isn’t exactly an easy area to figure out. It can depend on countless factors, with your personal preferences often dictating many of these. That doesn’t mean there aren’t ways to get a rough idea of how much you’ll have to pay, however.
The housing market can often affect this quite a bit. It has its ups and downs, which can then impact the various areas you’ll have to pay for. That’s why it’s often recommended you build during a down time. It helps you pay less for the overall build.
Either way, you can expect to shell out quite a bit on your custom home. By sticking to a budget and being willing to compromise on various areas, you shouldn’t have a problem keeping your costs on the low end. You’ll still get an amazing home with it.
If you want to go all-out on your custom home, though, expect to pay more and more. You’ll end up with your dream home because of it.
Factors Affecting the Cost of Building a Custom Home in Dallas
Custom home pricing in Dallas, TX, varies quite a bit because of what’s actually involved in it. The costs depend on multiple factors, and these can often be driven by personal preferences. Your custom home could cost noticeably more or less than someone else’s custom home.
While these can vary somewhat, the costs can still be broken down into a few common factors. Pay attention to these from the start, and you shouldn’t have a problem figuring out the cost of building your custom home in Dallas. The three largest factors are:
Material Cost - Materials are essential for building your home. Concrete, wiring, wood, and multiple other materials will be needed. You’ll naturally go with the right materials for your needs and overall design. They’ll all be priced differently per square foot of property. Expect to pay at least $400 per square foot of your home, depending on the exact materials you’re using.
Labor Cost - Quite a bit of labor is needed to build a custom home in Dallas. This depends on the contractors themselves, with some costing noticeably more than others. The overall time commitment they’ll have to invest in construction is the driving force behind this cost. The longer and more complicated the build is, the more you’ll have to pay, and this adds up fast.
Indirect Costs - There are plenty of indirect costs involved in building a home. Having an architect like Tony McClung design the house, building permits, and decorating are some of the more notable of these. They’re not directly related to the construction itself, but you’ll still have to pay for them. These can vary in price quite a bit, depending on what you’re doing.
Then there’s the cost of the land you want to build on. The cost of purchasing the land is just the start. After that, you’ll need to consider how complicated it’ll be to build on, based on drainage needs and similar areas.
Each of these factors will have quite a noticeable role on the cost of building a custom home in Dallas. Going for budget-friendly options with each helps keep the overall cost on the low end.
This could mean compromising on your vision, however. Nobody wants to do that, though. Striking the right balance between cost and your overall vision is recommended. It helps make sure you don’t blow through the roof with your expenses while still creating your dream home.
Cost Variations
While the cost of building a custom home in Dallas depends on multiple factors, it doesn’t mean all of these are set in stone. Many of them can vary quite a bit, making them worth paying attention to from the start.
Multiple factors can cause this variance, with some of the more notable being:
Land Cost - Land can vary in price across Dallas. A vacant plot in Highland Park can cost noticeably more than a vacant plot on the outskirts, for example.
Site Development Cost - How the land is plays a vital influence on construction costs. The typography, drainage, and similar areas will all affect this.
Construction Cost - Your overall construction costs can depend on multiple areas. Materials can vary in price, and different contractors will charge different amounts.
Then there’s the overall design of your custom home. The more complicated and luxurious you go, the more it should cost you. A trusted architectural designer like Tony McClung works with you to create the perfect design for you. They’ll even keep your budget in mind with this.
Keep these factors in mind when you’re figuring out custom home pricing in Dallas, TX. They could end up playing much more of a role than you would’ve thought. Keep them in mind from the start so you know how much you should have to pay.
Budgeting for a Custom Home in Dallas
As part of building a custom home in Dallas, you’ll need to know how much you can spend on it. This doesn’t just mean how much of a loan you can get or what you have in your bank account. Instead, you’ll need to know what’s going where and what the money’s actually being spent on.
This takes quite a bit of time and effort before you start construction. Knowing all of your potential costs ahead of time is worth it. You could also need to consider having an emergency fund for the build, just in case.
It’ll help you cover any surprises that come up during the construction process. These are more common than you’d think, and can often cause delays. Many of these can be relatively expensive when you’re not prepared for them. Put between 10% and 15% of your budget aside in case they come up.
Categories to Consider When Budgeting
It’s natural to feel a little overwhelmed when you’re putting this budget together. Many people don’t even know where to start with it. Thankfully, that doesn’t mean it has to be overly complicated. Focusing on a few particular categories helps to make it more straightforward.
The more notable of these include:
Land Acquisition - You’ll need to buy a plot of land before you can build anything. This can be one of your larger costs and needs to be budgeted for. It can vary quite a bit, depending on where in Dallas you’re buying the land, as well as a few other factors. Thankfully, this shouldn’t have to be prohibitively expensive, and you can find more than a few that meet your budget.
Materials - You’ll have to pay for quite a few materials to build your home. The actual cost of these depends on multiple factors. How many of them you need is the most notable. But, there’s also the fact some materials cost more than others. Some can be prohibitively expensive, while others will be more budget-friendly, despite still offering a luxury finish.
Contractors - Contractors will all cost different amounts, with this depending on their expertise, experience, labor hours, and similar factors. Getting quotes from the contractors you’re considering is always recommended. It lets you figure out which ones you should go for and work it into your budget. Go for value for money with this instead of just going for the most affordable option.
Design - The overall design of your custom home plays a vital role in the cost. A more complicated, luxurious layout costs more than something simple and straightforward. Then there’s the cost of professional architects and designers like Tony McClung. The design costs and factors that affect it can be minimal, but they’re worth budgeting for.
Factor these into your budget from the start. It makes planning out your custom home in Dallas much easier and can help you avoid a lot of stress and hassle.
The exact cost of each of these can vary depending on multiple factors. Since they’re not set in stone, budgeting for them can seem complicated. By comparing your options for each category, however, you make this noticeably easier.
It’ll not only help you figure out the cost of building a custom home in Dallas, but help you make sure you can afford it.
Ways to Finance a Custom Home in Dallas
With how expensive custom home pricing in Dallas, TX, can be, it’s natural to look at financing the build. It’s always possible you could afford this outright with money you already have in the bank. Not everyone is in this position, though.
The cost to build a custom home in Dallas could be more than they have on-hand. That doesn’t mean they’re out of options, however. If you’re in this position, you have a few other options.
They each offer their pros and cons, so they’re worth being aware of and looking into. That way, you can decide which option is the best for you. It’s worth looking into each of the options you could have.
Home Construction Loans
If you’re building a custom home in Dallas from scratch, a home construction loan can be the best path to take. You’ll still need to put at least 10% of the cost down yourself, but this makes it much more affordable. There are two common types to choose from when you’re building:
Construction-to-Permanent Loans - These loans cover the building costs, as well as financing the purchase of the land you’re building on. They’re converted into a more traditional loan, or mortgage, once the house is built.
Construction-Only Loan - These only finance the construction of your custom home. It’ll be due once the home is completely built. That usually means paying it back in cash or getting a mortgage to repay it later on.
These both offer their pros and cons, depending on what your needs are. A construction-to-permanent loan can often be the better option, as you’ll have more time before it has to be paid back completely.
There are several other home construction loans you can go for, too. These usually focus on renovations and similar areas, however. They mightn’t be the most appropriate when you’re building a custom home in Dallas from scratch.
Home Equity Loan
If you already have a mortgage but still need financing for a build or upgrades, you’re not out of options. A home equity loan could be the best route to take. The amount you can get, and the interest rate, is calculated based on how much a property is currently worth compared against its current market value.
Naturally, this means there already has to be a property in place. Because of that, home equity loans are usually used for home upgrades and redesigns. If you’re in this position, it offers more than a few benefits. These include:
Lower interest rates than other types of home loans.
Being tax deductible, which makes them even more affordable.
Access to a large amount of funds to afford custom home pricing in Dallas, TX.
Fixed repayments make it easy to pay back your loan.
If you’re focusing on an already existing home and want to turn it into a custom home, this could be the best path to take. While it has its drawbacks, it can still be worth it.
Building a Custom Home in Dallas Vs. Buying & Renovating
The cost of building a custom home in Dallas can often be prohibitively expensive. It’s far from the only option on offer, though. You can always consider buying a property and renovate it to turn it into a custom home. This can be appealing for more than a few reasons.
If you find a low-cost home, for example, you mightn’t have to put as much money into it. It also offers more than a few benefits, like:
Cutting down on your costs quite a bit.
Speeding up the entire process.
Giving you a solid foundation to expand from.
Skipping most of the construction work, preventing a lot of stress.
It’s easy to see why so many people could want to go down this route. Custom home pricing in Dallas, TX, could be too high for them to build from scratch.
There are countless ways you can take an existing property and turn it into a custom home. A premier architectural designer like Tony McClung can help adapt the current layout into something much more unique for you. It’s worth noting, however, it can come with its drawbacks.
Some of the more notable of these are:
Being more limited in what you can do on-site.
Needing to make repairs during the construction process.
Giving up a certain amount of control over the home’s layout.
Despite that, it can often be a recommended path to take. If you’re set on having more control and making your home truly unique, though, building a custom home in Dallas could be a much better option. Compare the pros and cons of both approaches before making your decision.
Wrapping Up
There are plenty of reasons to consider building a custom home in Dallas. It gives you full control over how the house ends up, making sure it’s your dream home. It’s not a process you should rush into, though. You’ll need to pay attention to more than a few areas when you get started.
The cost of building a custom home in Dallas is one of the more notable. As a leading architectural designer, Tony McClung knows this full well. Tony’s worked with countless people on their custom homes, helping them create custom properties based on their budget and needs.
Custom home pricing in Dallas, TX, can be a tricky area to figure out. By paying attention to the above, however, you shouldn’t have a problem figuring it out. You’ll have no problem making sure you can design and build your dream home in Dallas.