New construction homes come in three main types: production, custom, and semi-custom.
All three come with a package of new-home benefits, such as contemporary design, a builder's warranty, smart-home features, and energy-efficient appliances. And, all three let you make choices about your new home, so you can personalize it however you want.
Beyond those benefits, production, custom, and semi-custom homes offer an array of different advantages. We’re giving you a snapshot of each type of new construction home so you’ll know how to choose the right type of home for you.
What are production homes?
Production homes are typically built in clusters inside new home developments. The builder uses a selection of floor plans and building materials and a systematized approach that can make this type of home more affordable for buyers.
Although production homes are built in bulk, they're not identical. As a buyer, your selection of floor plans and styles will be set, but you'll still have multiple options.
Typically, you'll be able to pick:
- Floor plan
- Exterior design
- Bonus room (e.g., extra bedroom, home office, media room, etc.)
- Cabinets, counter tops, carpeting, flooring, and other fixtures and finishes
What are custom homes?
Custom homes are built one at a time to fit an individual buyer's unique needs and desires.
When you build a custom home, you can purchase a lot from your builder, or provide a lot that you already own or purchase on your own. If your lot isn't ready to build on, you'll need some site preparation services, such as excavating, building a driveway, or hooking up utilities.
With a custom home, you can hire an architect or use a design-build firm to create a floor plan for you. You'll be closely involved in the design process and you'll get to choose everything from your home's foundation to its roof.
For many buyers, building a custom home is a lifelong dream come true.
What are semi-custom homes?
Semi-custom homes fall between production homes and custom homes.
As a buyer of this type of home, you'll make more decisions than you would if you purchased a production home, but fewer than if you buy a custom home. If you choose a production home builder to build your semi-custom home, you'll have a larger-than-usual assortment of options and higher-than-typical degree of choice and flexibility.
Now that you have a general understanding of the three types of newly built homes, you're armed with the knowledge to shop for the new home that fits your needs. Remember, there are a ton of options for buying new construction, whether you need something to fit a conservative budget or are ready to build that dream chateau complete with all the turrets your heart desires.