If you are considering building a custom home in Nashville but are not sure about how much it cost or how to get started, you have come to the right place. The average cost of building a house in Nashville is $160-$220 per square foot. This will be the building cost, however there are many other factors to consider. This is based on a home with basic finishes, an extremely high end finishes could cost over $300 per sqf. Other expenses will be the Land cost, excavation cost and land preparation, permits, fees, surveys, utility connections, design consultation. There are further various factors affect the cost of building a house, such as the type of property, architectural design plans, customizations you choose, square footage, style of home design, and more. A very complicated architecture can put a lot of additional cost on the build; different rooflines, bump-outs, overhangs, ceiling heights, porches, are all examples of features that can be costly. The footprint of the home will be the most expensive part of the building process and will determine the cost of the total construction.
What is the typical building time frame: Expect 8-15 months. Average time in Nashville once foundation is poured will be 8 months. Many factors can affect the outcome. Weather delays, permitting delays, and how long it takes you to pick out your selections.
Step 1: Choose and Purchase a Lot or Property
The first step to building a custom home is choosing a lot. This is a critical step that will affect the rest of the building, from how large your home can be to how it is situated on the site. A trusted Land specialist Real Estate Agent can help you with determining the land value and buildability for your needs.
It will be crucial to understand the lot’s buildable space. Not all space on a lot is buildable. Many factors can affect how much of the space on your lot can be used for the actual home. If you are building in a community with a homeowner’s association, there may be guidelines on the size of the building, the placement of the home on the lot, and even aesthetic requirements. Research setbacks, variances, and any environmental regulations that may be associated with the lot. Are there utilities at the street level, if not, can the land “Perc” for septic. A perc test or sometimes known as “perk” is a percolation test, is a soil evaluation that determines how quickly water drains through soil. The perk test will determine how many bedrooms can be built in a home on the property. Rocky land or land with sever slope can also be extremely hard to build. This does not mean that it can’t be built, however it may be cost prohibitive to build the home you want.
Step 2: Decide on a Budget for your Custom Home
You can choose to purchase your own land and you can find financing options for purchasing land, of if you own the land it can be used as collateral in a building loan. Once you have determined your land it’s time to determine the building budget.
I always suggest you work backwards with your numbers to determine what price you can afford and want to pay. What do you feel comfortable with in your budget and what home you can build within your budget. To determine this the best place to start is with a trusted financial adviser. There are many financing options available; from mid-size local banks, credit unions and mortgage lenders, they can provide you with your options. Many are interest only loans and use what is called a “draw” system. Think of it as a credit card, you only pay the interest on what amount of money you spend. A "draw system" for a builder's loan refers to a method where the lender releases funds to the builder in installments throughout the construction project, based on the completion of specific milestones, rather than providing the entire loan amount upfront; essentially, the builder "draws" money from the loan as needed to cover the costs of each phase of construction. Your Builder will pull money in phases, with each phase they will ask you for a certain amount of money. Your monthly payments will go up the further along the building process.
What are some things to consider:
• Will the neighborhood support that budget.
• Can you secure financing for the project.
• Do you have the timeframe for the length of the project
With your land secured and the budget and financing in place it’s time to move on to the FUN PART. Now it’s time to start designing and building your new custom home!
Step 3: Find a Team to Help You Design and Build
The next step in the custom home building process is finding a team you trust to design and build your home.
If you’re planning to build a custom home from scratch, it’s worth it to look into experienced custom home design-build firms in your area. When you build a custom home, the design and layout you’re planning must be practical for real building applications. By choosing a design-build firm, you benefit from the combined expertise of both designers and builders working together to develop a beautiful custom home that suits your lifestyle, is built with quality craftsmanship, and is value-engineered from start to finish.
Now you need to put together your Team - You will need a Builder, Architect, and Designer.
Choosing the Right Builder:
Make sure the builder has the expertise in the sort of home plans you want to build and are they experts in the area you want to build. County, city, and location is important. Every area has different building requirements, and the right builder will be able to navigate through the process or codes and permits. And what is their pay structure?
• Fee Based - A set amount for the entire project, often used when the scope of work is well-defined and predictable. If you are working on a tight budget or want to select high-end finishes this is the best option. A "fee-based builder" is a construction company that charges a set fee for their services, typically calculated as a percentage of the total project cost, rather than marking up the cost of materials and labor directly; essentially, they are paid for their expertise in managing the construction process, not just for the materials and labor involved, allowing for greater transparency in pricing and potential cost savings for the client.
• Cost-plus model: You pay a Flat fee for the builder and a Percentage of the total amount of the building cost of the home. This will Requires close monitoring of costs and can potentially lead to higher overall expenses if unexpected changes occur.
Designers and architects
Understanding the Design Timeline for a Custom Home
If you’re new to custom home building, know that you’ll need to spend time both designing and then building your custom home. You’ve likely chosen to build a custom home because you value the freedom to make your own decisions on design, layout, finishes, and even options like building a green or passive home. The end product will be a home that’s truly your own, but all that customization takes time.
In general, you can plan for the design phase of your custom home building process to take between 4-8 months. In that time, you’ll work with your custom home builder to:
• Develop and finalize design plans
• Choose finishes for your home
• Finalize any additional project details and drawings for your custom home
Step 4: Build
With a design in place, finishes and selections made, and drawings ready to go, it’s time to build your custom home! Depending on the size of your custom home and the scope of work. As your build gets underway, this is a general outline of the steps you can expect the construction process to follow:
• Site prep. Getting your lot leveled and ready for new construction.
• Foundation and framing. Building up the structure for your new custom home.
• Interior system installation. Things like plumbing, electric, and the HVAC system are installed.
• Insulation and drywall. The builders start working on the interior components of your home with tasks like installing insulation and building up interior walls.
• Flooring, cabinetry, tile, plumbing fixtures, and paint. Big-ticket interior finishes go in now, and your home is starting to take shape!
• Fixtures and appliances. Last, the finishing touches go into your custom home. Lighting, fixtures, and appliances like your washer and dryer, oven, and refrigerator are installed.
Step 5: Close
Finally, after months of planning and construction, your home is nearly ready to move in! Once fixtures and appliances have been installed, it’s time for the last few steps of the active building process. The builder will secure the Occupancy permit, once that is completed here’s what to expect from a quality custom builder:
Completion List. You’ll walk through your new home with your builder, where they’ll go over any finishing touches still left to do, and make sure everything has been completed to your expectations.
Final cleanup. Your builder will finish up any leftover items from the completion list and then perform a final cleanup to ensure your home is spotless and ready to move in.
Get your keys! Your home is finally ready for moving in. Now, you’ll get your keys and you’ll be able to enjoy that brand new custom home, tailor-made to suit you.
Secure your loan: Once you have your home completed and a final Occupancy permit it will be time to secure your loan. Many lenders will have a One-time Close loan, be sure and ask about this. This will save you money on closing costs. You will roll in the land loan and construction loan into a 15 or 30 year conventional mortgage.
Final Thoughts:
Now you will have the home of your dreams built exactly the way you want for you and your families lifestyle. Building a brand-new home may sound like a dream come true and when it’s all over it will be. You get to choose the ideal layout for your family’s needs and have a say in each and every design element. However, the process may also be daunting if you’ve never done it before. With every homeowner I have helped to build a custom home it has been a very bumpy ride. It requires a lot of time, patience, lot of due diligence on what you want, putting the best team in place, discovering not only what you want in a home and the design elements but also what you DON’T WANT. Do you want stairs from your garage or want a smooth entry, or what way you want your doors to swing, where to put your electrical outlets, how you want your kitchen designed, or what sort of bathroom shower head your like. It’s a tedious job, but it will be a labor of love in the end. With the right team of experts and a lot of patience in the long run, all the hard times will be forgotten and you will be thrilled for moving day!
If you are considering building a custom home call me and we can discuss your options. Wendy Dyes; Realtor, Certified Land Specialist, Certified Luxury Home Expert: 615-807-0340