Maryland is a great place to build your dream home, with its coastal regions, historic cities, and proximity to major metro areas. Building a custom home allows you to create the perfect space for your lifestyle. While it costs more than purchasing an existing home, you get the flexibility to pick the location, design, finishes and more. On average, the cost of building an average home in Maryland can vary from $500,000 to over $1,000,000. This consists of construction expenses influenced by factors such as property type, square footage, and customization choices. Here are some tips for building your ideal home in Maryland:
The Critical Role of Location
Location stands out as one of the foremost factors influencing the overall cost of building a house in Maryland. Maryland’s more affluent regions, such as Bethesda and upscale suburbs around Washington, D.C., along with planned communities like Columbia, often come with higher construction expenses. Conversely, constructing a home in rural areas, which comprise about 25% of Maryland’s land, is generally more budget-friendly. However, even some rural spots along the Eastern Shore of the Chesapeake Bay can prove expensive due to their popularity for vacation homes.
The Step-by-Step Building Process
Constructing a house in Maryland typically spans approximately seven months, commencing from the initiation of the contract to the final stages of completion.
Budgeting for Your New Home
Before embarking on the exciting journey of building your home, it’s crucial to perform a thorough review of your budget. To begin, determine a monthly housing payment that you find comfortable, taking into account factors such as mortgage principal and interest, property taxes, homeowner’s insurance, and potential private mortgage insurance. It’s worth noting that in Maryland, homeowner’s insurance tends to be lower than the national average, while property taxes can be comparatively higher, contingent upon the specific county.
Additionally, consider cash reserves, a down payment, and closing costs in your calculations. Seeking a mortgage pre-approval from a lender based on your financial situation will provide you with a clear understanding of your borrowing capacity. Explore whether you qualify for any homebuyer assistance or special loan programs.
Choosing Your Builder and Community
Now that you have a clear financial picture, it’s time to embark on the search for the right builder and community to bring your dream home to life. Begin your quest online, narrowing down options based on your preferred geographical location and budget constraints. Explore an array of resources, including floor plans, high-quality photographs, detailed community descriptions, and immersive virtual tours, all available on builder and community websites.
Once you have compiled a list of communities that pique your interest, it’s advisable to visit model homes and engage with sales professionals who can provide insights into various aspects, including optional features, community amenities, available floor plans, and estimated timelines for house construction. If there are existing residents within the community, consider reaching out to them for valuable insights into the homes and the overall living experience.
Securing Financing
Even if you have obtained a mortgage pre approval, your chosen builder may recommend getting approved with their preferred or in-house lender. While you have the freedom to choose your lender, working with the builder’s preferred lender can present certain advantages. This lender will be well-acquainted with the specific timeline and procedures associated with the community. Furthermore, some builders may offer incentives, such as covering closing costs or providing upgrades, if you opt for their recommended lender and title company.
Selecting Your Lot, Floor Plan, and Upgrades
At this stage of the process, you’ll finalize critical decisions, including the lot, floor plan, and any available upgrades.. It’s important to note that not all floor plans are compatible with every lot, potentially necessitating compromises on either the location or the home’s exterior design.
Keeping your budget in mind, inquire about any premiums associated with specific lots and seek clarity regarding future developments that may impact your home and the community.
Permitting and Inspections
During the construction phase of your house, your builder will oversee and manage all permit and inspection requirements. Maryland adheres to a statewide building code, and specific local codes may also apply. If you wish to conduct your independent home inspection, communicate with your builder to schedule a suitable time for an inspector to visit the property.
To view all Maryland counties for permits, click here.
Navigating the Timeline
It’s important to understand that various factors can influence the construction timeline in Maryland, including weather conditions, labor availability, and material shortages. As a result, your home’s completion may occur either sooner or later than initially anticipated. It is imperative to maintain open and consistent communication with your builder and lender to effectively manage this aspect of the process. This proactive approach ensures you are well-informed regarding when to lock in your mortgage rate and when to list your current home on the market.
According to the latest 2021 data from the U.S. Census Bureau’s Survey of Construction, the average duration for the start-to-completion process of new privately owned residential buildings is estimated at approximately 7.6 months.
On average, the step-by-step process of building a house in Maryland takes approximately seven months. However, the timeline can exhibit variations, so staying in close contact with your builder and lender is key.
FAQ For Building a Home in Maryland
How Do I Choose The Right Location For My New Home in Maryland?
Location is crucial and influences the cost. Maryland’s more affluent regions may have higher construction expenses, while rural areas are generally more budget-friendly. Research various areas to find the best fit for your lifestyle.
Are There Any Specific Building Codes in Maryland That I Should Be Aware Of?
Maryland adheres to a statewide building code, and specific local codes may also apply. Your builder will handle the necessary permits and inspections to ensure compliance.
When Is The Right Time to Start Building My New Home in Maryland?
Once you’ve completed the necessary preparations, including securing financing and finalizing your design choices, you can start building your dream home in Maryland.
Remember, building a home is a significant endeavor, so it’s essential to work closely with professionals who can guide you through the process and help you achieve your vision.
Start Building Today
If you’re ready to turn your dream home into a reality, our experienced building company is here to make it happen. With a track record of crafting exquisite homes tailored to your vision, we invite you to take the next step towards building the perfect place to call your own. Let’s embark on this exciting journey together – contact us today to start building the home you’ve always wanted. Your dream home awaits, and we’re here to build it for you.