Custom-built homes typically hold and appreciate value better than pre-built, “cookie-cutter” homes. Despite their higher initial upfront cost (because more personalization equals more time and labor), custom home building typically offers a better return on investment. This is often the case here in Central Florida, where we have a thriving real estate market.
Why Might Pre-Built Homes Depreciate?
While there are plenty of well-made, pre-built homes with good market value, that value may depreciate more quickly than custom homes for several reasons.
- “Sameness”: Lack of uniqueness can often mean a lack of character when it comes to prebuilt homes. That makes them less attractive to some buyers.
- Easily Dated: Because a given pre-built style tends to be popular at a certain time, they might become dated more quickly than a custom home, which could be harder to “pin down” to a particular time period.
- Quality Issues: If pre-built homes are put up too quickly, there could be quality issues sooner than you’d see typical wear and tear. It’s important (whether you choose pre-built or custom homes) to carefully research your home builder to ensure they have a good reputation and that their work is protected.
Why do Custom Homes Tend to Hold Value?
Custom homes tend to hold and appreciate value more than pre-built ones because they’re unique and built with high-quality features and finishes that appeal to buyers. In addition:
- They have high potential for innovation. Buyers can incorporate smart home technology, energy-efficient systems, or multi-functional spaces from the start rather than having to upgrade or remodel later. That can increase their marketability and long-term value.
- They have stability and longevity: As long as it’s not hyper-customized, making an initial investment in the home floor plan, systems, and features can allow for uninterrupted appreciation. You’re less likely to have to disrupt your life with costly remodels and renovations if you start with the home you want.
Pre-Built or Custom: How to Decide?
Ultimately, the choice is yours. Deciding whether to customize your home or purchase a pre-built model depends on your priorities.
- If you want to be able to move in quickly to a home that can be built and outfitted faster, pre-built may be the best choice.
- If you’re able to make a greater upfront investment and aren’t on a time crunch to move in, you and your family might be best-suited to a custom home.
- Need accessibility and visitability for family members who live with you (or plan to)? Why not start with a home that can accommodate them, rather than deal with disruptive remodels later?
We’re here to help if you have any questions about the custom home building process, or its benefits for you and your family. Contact Highland Homes today for a free consultation.
