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604 Fair Oaks Ct, Ashland, OR 97520

The Cost of Building a Custom House in Southern Oregon

It has become more common for prospective homeowners to build their dream homes as opposed to house hunting. By custom building from the ground up, one can really make a home with unique personality and features. The one setback is the cost. However, if done correctly, your dream home can be custom-built for approximately the same price as buying an existing one. Does this sound intriguing? Then, you’ll definitely want to keep reading!

Ridgeview Place view from 2nd floor

Biggest Custom Home Cost Factors

The Big 3 Cost Factors For Building A Custom Home:

  • Location Costs
  • Design Costs
  • Financing Costs

Custom Home Location Costs

First and foremost, you need to decide where you want your new home to be built. An obvious, but important factor when it comes to the cost to build. 

Once this is decided many of the costs associated with building a custom home will become more clear. If you are looking for a custom-built home around Medford, OR the average price people have paid for a custom home builder (not including the material costs) is $55,000 according to Manta.com. This website is also a great tool to get an estimate for a custom home cost in any zip code across the U.S.

Another major factor is timing. You need to set realistic expectations when it comes to your move-in deadline. The timeline can be dependant on a number of factors depending on your location (because of the seasons), your home builders schedule, and the schedules of 3rd party contractors that will need to be hired throughout the home building process.

Cost Factors To Consider That Are Dependant On Your Location:

  • Avg cost per acre of land
  • Local fees and taxes
  • Zoning laws and regulations i.e. energy code and building height
  • Historic district costs(learn about Medford, OR 4 historic districts here)

Filling out online forms does not mean you are ready to go break ground and will not give you an exact custom home cost. We highly recommend speaking to a professional and having a local contractor survey the land you plan to build on. Shop around, get estimates. This is one of the biggest purchases you may ever make, so it is important to be diligent in vetting and negotiating with all parties involved.

This is necessary because a professional will be able to read the typography of your land better than you and will recognize any unforeseen costs, such as the need for a septic tank, or how the landscaping will affect the building process if you wish to keep any existing trees or plant new ones on the property. If you fail to recognize these types of issues at the outset, your custom home’s cost can skyrocket rapidly.

Custom Home Design Costs

This is where the price of building a custom home can range the most. This is also where you can make your dream home come to life, but doing so can also come at a large cost. First and foremost, decide with your spouse/partner/yourself on the bare minimums. For example, how many bedrooms you need for children/guests, or how many bathrooms, etc. After you have chosen the bare minimums of what you need in your custom home and its associated cost you can start designing the rest. The rest is the fun part!

Verde Village Phase 2 Living and Dining Area
Home Designed By KDA Homes

From here on out, everything is on a need vs. want basis. Remember that if you have any significant last-minute changes to the design, it can really ramp up the construction cost and possibly the timeline of the project. In the planning stage, we recommend getting pictures off Pinterest or out of magazines for ideas and ask your contractor if they can realistically work them into the plan and still maintain your budget. 

Custom Home Financing Costs

If you plan on paying for the entirety of the custom home cost upfront, then you probably do not need to worry about financing, but it can be good to weigh your options regardless. If you do plan on taking out a loan or using credit, then keep reading. 

Financing Costs For Building A Custom Home

There are plenty of sites we recommend going to with certified financing specialists to walk you through the journey of figuring out the cost of a custom home, but here are a few simple steps you can take before meeting with a specialist.

  1. Check your credit score and resolve any errors immediately. Learn more here
  2. Decide if you will have to take out a mortgage. Learn more here
  3. Ask multiple lenders to find the best interest rate. Really shop around as this rate can equate to tens of thousands of dollars in the long run.

Financing is an important factor when figuring out your custom home cost. Many people fail to include this in their initial budget. Therefore, they end up overspending on their custom home. Make sure to follow these steps in order to stay within budget and reduce the cost of creating your dream home. 

Build Your Home in Southern Oregon

Why we love living in Ashland Oregon

If you are thinking about custom building your home, Southern Oregon is a beautiful place to live that is growing with young families. Southern Oregon is perfect for those who lead an active lifestyle and love the great outdoors. If you’re unfamiliar with Southern Oregon and would like to learn more about home building options in the area, please give us a call. Our team will happily guide you through the process and help you find the right home builder for the job (it may even be us 😉 ).

At KDA Homes, our mission is to be pioneers in smarter home design leading the way for sustainability in residential development and green building. If you’re interested in being a part of a sustainable community in Ashland, Oregon please contact us today to learn more about KDA Homes currently on the market.

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