3 New Construction Options for Home Buyers to Consider

New home construction often comes in three types: custom, semi-custom and production. The type that's right for you depends on your budget and other factors.

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3 New Construction Options for Home Buyers to Consider

Posted by Gary Ashton RE/MAX Advantage on Monday, August 10th, 2020 at 10:29am.

Everything to Know About Different Types of New Home ConstructionBuilding a new construction home is one of the most rewarding things a homeowner can do. What many people don't realize until they get started choosing a builder is that there are actually three new home construction options to choose from. Knowing about the different types of home construction, including the benefits and disadvantages of each, can help you decide which type of home construction is right for you.


Production homes are built in bulk in home developments. Driving through a development like this, buyers will notice that all the homes are built similarly, though they don't all look the same. Buyers who choose homes in these areas have their choice of lot size, exterior siding and appearance, floor plan, whether to include a bonus room and the appearance of major fixtures like the cabinets, countertops and floors. Production homes are created in a production environment, which means they're made quickly and efficiently. Production developments can grow fast.

Who Is Suited for This Type of Home?

Production homes are great for people who want a brand-new home but have a limited budget. They're also the perfect home for people who want a new home but don't want to spend a lot of time monitoring the development of the structure. Production homes are built according to a plan with little customization, so once the home buyer decides which type of fixtures, layout and appearance is right for them, they are required to make few decisions before the home is built.

Benefits of a Production Home

  • Relatively low-cost compared to other types of home building
  • Home is available quickly for buyers who need to move soon
  • Requires less involvement from the home buyer during the building process


Custom homes are fully customized from start to finish. During the construction of a custom home, buyers work closely with builders to create a unique home that is right for their needs. This may involve working with an architect separately, or some home buyers will work with a design-build contractor who employs an in-house architect for these purposes.

Custom homes are labor-intensive for the builder and the architect, which means they can be costly for the home buyer. They also take much longer to construct.

Who Is Suited for This Type of Home?

People who are well-suited for this type of home have a lot of time to spend on the customization of their home, they're very particular about the appearance of their home, and they have a budget that can afford this type of home. Custom homes are forever homes.

Not everyone can afford this type of home or has the time and patience for it. However, those who do have the time and energy to spend on building a custom home often find the finished results to be as gratifying as a home can be.

Benefits of Custom Home

  • Fully customized home
  • Perfect for a homeowner who needs extra space
  • Home value often higher than a production home


A semi-custom home is more customized than a production home, but not quite as unique as a custom home. Semi-custom home builders offer home buyers an array of choices that enable the buyer to create a home that looks and feels more unique than the other homes in their neighborhood. The result is a more diverse development.

Who Is Suited for This Type of Home?

Semi-custom homes are suitable for home buyers of many kinds, as semi-custom homes come in a large range of costs. People who are suited for a semi-custom home are people who have more money to spend on their new construction home. However, they may not have the time, energy or budget to create a fully unique construction.

Benefits of Semi-Custom Home

  • Wider range of choices than a production home
  • Often higher value than production home
  • Not as costly as a custom home and requires less time commitment from buyer

Building a Home? Work with a Reputable Home Builder

Building a home can be a rewarding and enjoyable experience, but only if you're working with the right home builder. If you would like to build a home, spend time interviewing home builders who have experience and a reputation for doing good work in your area. Interview at least three home builders.

Get references, look at the previous work, and discuss prices. By taking the time to find the right builder, you'll be happier with your new construction home.


Gary Ashton

The Ashton Real Estate Group of RE/MAX Advantage

The #1 Real Estate Team in Tennessee and #2 RE/MAX team in the World!

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