The Difference Between Custom Homes and Semi-Custom Homes

Deciding to build a new home is an exciting step, but a lot of folks wonder how much of the design can be customized and what control they have of the decision making. You may have heard terms like “semi-custom homes” or “custom-built homes,” and in this post we’d like to break each of them down so you understand your options.

How Semi-Custom Homes Work, and Where You’ll Typically See Them

Semi-custom homes sit somewhere between custom construction and production homes. (Production homes are where a builder has a couple fixed designs that they use repeatedly in a neighborhood.) Semi-custom options offer flexibility, but within a defined framework that’s largely established before a homeowner ever enters the process.

In this setup, the builder typically starts with a set of pre-designed floor plans. Buyers can choose from those plans and may be able to make certain modifications, such as selecting countertop finishes, cabinet color, light fixtures and flooring. The exact things a buyer can change vary with each builder. The overall layout and construction approach generally do not change, though.

That framework allows semi-custom homes to balance personalization with efficiency.

Planned neighborhoods and subdivisions often use this approach. There are usually a mix of production and semi-custom homes, where several houses may share similar footprints, rooflines, or layouts. (Even if the exterior finishes and interior selections vary.) You might tour a model home, then choose a version of that plan to bring it more in line with your tastes.

This approach is popular for a few reasons:

• Predictability – Pricing and timelines can be easier to estimate because the plans and construction methods are well established.

• Fewer decisions – Many choices are narrowed in advance, which can feel less overwhelming for homeowners who don’t want to design every detail.

• Efficiency at scale – Working with familiar designs can streamline permitting, ordering, and construction.

• Familiarity – Homes in these neighborhoods tend to feel recognizable, which some buyers appreciate from a resale or appraisal standpoint.

In the Triad, production and semi-custom homes are commonly found in newer developments where homes are built in phases, often by builders who focus on volume and consistency. 

The Difference of a Custom Home

While a semi-custom home often begins with a pre-decided plan, custom homes allow you to have plans as personalized as you’d like. Here are a few options:

• Purchase plans online - If you find plans online that you love, you can purchase that set for the contractor to build. This approach is common because there are many great plans out there, and it saves money because you’re not hiring an architect or draftsman to draw up plans from scratch. (Note, however: if you need to make modifications, this becomes as expensive, or more than hiring a draftsman/architect to begin with.)

• Have plans drawn - What we find most effective is to have plans drawn specifically to meet your desires and needs. This can happen before you meet with a builder or after. (Note: we recommend working with the builder & draftsman together to ensure your plans do not exceed the desired budget.)

• Use the builder’s previous plans - In some cases, the builder may have unlimited licenses for plans they have built in the past. This is usually where a semi-custom build begins. You can turn it into a fully custom build from there by working with the builder to make as many changes as needed.

Scenarios Where Fully Custom Homes Make The Most Sense

As with all real estate purchases, the primary factor to consider is “location, location, location.” When the priority is one perfect spot, people might prefer to build their own home instead of buying a pre-built one already on the market. 

That’s especially true if you love an area but don't want to be bunched up against neighbors. Sometimes there are plots of undeveloped land in desirable areas that can become something ideal for a creative buyer. You can build a semi-custom home on this type of land as well.

Once you purchase your own lot, (see our article on what to look for in a lot) a custom home is a great way to build your dream house. Your builder will take the land elevation, surrounding area, and orientation into consideration.

Another main reason you’d want to build a fully custom home is to have full control of the design. Instead of having specific plans to work within and a list of a few options to select from, you have complete customization options at your disposal. By working with a design team, you get to pick out which specific flooring, countertops, window types and size, trim design, ceiling height, lights, and much more.

The help of an interior designer can mitigate how overwhelming that can seem, so be sure to ask your contractor how those selections are made. Designing a home involves thousands of decisions. Working with an interior designer can help you find your style, make selections, and ease the entire process so it isn’t overwhelming. You will still have lots of options and control, but won’t bear all the responsibility of making all of them. 

The quality of the build will most likely be higher with a custom home rather than semi-custom or production. Semi-custom homes are built “efficiently,” but that often comes with a sacrifice. The builder’s goal is to finish the home as quickly and efficiently as possible, which can often lead to corners being cut and things being missed. 

This does not mean that we shouldn’t be efficient with our time, but it should ideally be done in a way that isn’t detrimental to the quality of the build. Fully custom home builds allow for that additional layer of care.

Resale value is a big reason some people consider custom builds. They generally have higher resale value because they are unique, and that becomes all the more true if that home sits on a good piece of land. Relatedly, if you own such a piece of land, the draw to using a custom build can be higher if you intend for it to be a generational home. If your children will one day inherit it, building something that speaks to your family and solves a variety of needs makes it a desirable option to choose.

We have a great construction team, and love working with custom designs!

Our lead builder, Holden, is both skilled and passionate about these types of custom builds. The ability to plan carefully, use higher end supplies, and suit a buyer’s specific vision is incredibly rewarding.

We would love to help you create a home that feels truly yours for many years to come!

If you’re curious, you can view some of our finished custom build photos here.

Otherwise, we’d love to hear from you! (Contact below.)