Today, there are an unprecedented number of baby boomers who want to make the ultimate statement - custom build their dream home. These types of homes allow for creativity and the chance for a homeowner to design their own unique living space. While this trend has numerous benefits, this venture shouldn’t be treated too lightly. It’s best to be fully educated about custom-built homes before any foundation is laid.

Let’s look at the various players who are usually involved in building custom homes.

Firstly, there’s the architect. The architect is such an integral part of the planning process of a custom-built home, that it is worthwhile allocating a fair amount of time and money on this aspect of the project. Remember that when you are designing your home, every detail should be considered and specified. This means being attentive to even small specifications such as door knobs, kitchen cabinetry knobs, mirrors, and the like. More time invested on this phase of the project usually means less headaches later. It is time well spent.

Next is the general contractor. When it comes to building a custom home, most individuals hire a general contractor to oversee the entire project. This contractor is in charge of appointing all the required tradespeople — bricklayers, carpet installers, cabinet makers, etc. The general contractor will work to ensure the quality of each tradesperson is at the highest level. The general contractor will also be very familiar with building permits and what’s required on that front, including when they need to be obtained. Building permits are the general contractor’s responsibility.

For these reason, it is of the utmost importance that anyone considering a custom-built home gather as much information as they can about general contractors. Even if a trusted friend or family member refers someone, be sure to obtain at least three references from the contractor. It is also imperative that you view numerous projects that the general contractor has completed. It would also be prudent to question the contractor’s past clients about time lines, budgets and professionalism.

One of the most important considerations when it comes to deciding whether a custom-built home is right for you is liquidity. There is no question that the potential home owner will need to have access to readily available cash. And please don’t mistake liquidity with equity. Equity might not be sufficient to get your custom-built home off the ground. For example, having significant equity which isn’t in a liquid state does not guarantee that a bank will grant you a loan for your new home construction.

Another element to be weighed in during the decision making process about custom-built homes is the availability of a good, residential lot. If you are going to be building a large custom home, then its location is very important. Ideally, your home should be located in a desirable area. Also, recognize the value of location to real estate and the integral part it plays in future appreciation.

Even when you are investing in a custom-built home, it is important to be mindful of its future resale value. While your custom built home can be unique, it’s important that you do not go overboard and make it impossible to sell in the future.

As mentioned previously in other articles, high-end housing is reaching unprecedented sales records. A custom-built home in an exclusive residential neighbourhood could represent an excellent investment with strong appreciation opportunities. At the same time however, custom-built homes can typically run over budget (they tend to be more expensive then mass-built homes) and require more time then first planned (building permits often cause unforeseen delays). For these reasons, anyone considering a custom-built home should be certain this is the proper path they wish to go down before any construction is begun.