Pros and Cons of Custom Homes Vs Personalized Production Homes

This is part three of our series of articles comparing custom homes to personalized production homes. This article will focus on the pros and cons of custom homes vs. personalized production homes.

If you are considering the purchase of a new home, you may be trying to decide whether to have a custom home built or buy a personalized production home. There are very distinct differences between the two, so you should spend some time learning the specific details of each before you make a final decision.

custom homes vs production homes

Some of the questions you will need to have answered are:

Cost: What is the square foot cost for each type of home?

Time to Build: How long does it take to build each type of home?

Pros/Cons: What are the advantages and disadvantages of each type of home?

Options and Selections: What options and selections will you get to choose?

Warranty: What level of new home warranty should you expect with each type of home?

Touch Points: How much personalized service will you get from each type of builder?

Learning everything you can about the different types of new homes selections available will allow you to make a more educated decision about which option is best for you and your family. Please read our series of articles on this topic for more information and answers to all the above questions.

Custom Homes


  • You will be able to choose the location of where your home is to be built.
  • You will get to decide the details for every product and feature of the home.
  • Your new home will be unique from every other home.
  • The quality and functionality of the home will meet all your requirements and standards.


  • Custom homes are expensive to build compared to personalized production homes.
    • A custom home builder is not able to buy the supplies needed in bulk, making the materials for the home more expensive.
    • Labor will be more expensive as a custom home has never been built before and many details and problems will have to be worked out during construction.
  • In most cases you will have to find and purchase your own land to build the home on.
  • Custom homes take significantly longer to build than production homes.
  • You will have the added expense of hiring an architect to design the home, or have purchased plans modified, as well as finding a contractor who builds custom homes.
  • A custom home will depreciate faster than a production home.
  • It is difficult to get the home appraised for the total build cost. Thus, most banks will not lend the entire amount needed to build the home requiring a significant down payment from the homebuyer.

Personalized Production Homes


  • You have the flexibility of choosing from a variety of price points.
  • The land comes with the price of the home.
  • Production home builders offer a variety of floor plans to choose from.
  • There are fewer decisions to make which leads to less stress and less hassle.
  • A personalized production home is much less expensive to build than a custom home.
  • A personalized production home can be built much faster than a custom home.
  • A selections coordinator will help you make the best selections for your new home to personalize it to fit your needs.
  • Production homes are priced to meet comparable appraisal values enabling homebuyers to borrow the entire amount of the cost of the home depending on the type of loan chosen.
  • Many production builders offer comprehensive warranties such as the McKee Homes 2-10 Warranty Program that covers the structure for up to 10 years.
  • In many cases, you will have the added benefit of living in a community with access to amenities such as: golf course, clubhouse, fitness center, pool, tennis courts, basketball courts, baseball, volleyball, a park, playground and walking trails.


  • You won’t be able to design every aspect of your new home.
  • You won’t have as much input in how the home is constructed.
  • You won’t have unlimited land options from which to choose.
  • Because production builders build a large number of homes each year, they cannot offer as many touch points with their homebuyers as custom home builders.

The Bottom Line

The decision about whether to buy a custom home or a personalized production home is a very personal one and one only you can make. You should take as much time as you need to study all your options, and then will you be able to make the decision that is right for you and your family.

If you find yourself torn about which direction to take, you may want to visit some personalized production home builder locations to get a feel for what they have to offer. If after that you don’t find anything that suits your needs, you can always contact a custom home builder to compare the costs and options they have available.

Edited and posted by

McKee Homes online marketing manager

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15 thoughts on “Pros and Cons of Custom Homes Vs Personalized Production Homes

  1. I like how you included that you will get to decide the details for every product feature of the home. My sister and her husband were thinking about getting their own home custom built and the wanted to know the benefits. I’ll make sure to pass this information along to them if they decide to get one built.

  2. Thanks for the suggestion to ask what options and selections we’ll get to choose. My husband and I are wanting to build our own home in the near future, but there are certain elements of the home I want to be sure to have input on. Hopefully we can find a great custom home contractor in our area!

  3. I liked that you said that one thing to consider when needing a new home is to have one custom built in order to be able to choose your own price range and to be able to design it the way you would like. I would imagine that this would help you to achieve your dream home at the price point that you are comfortable with paying. I would be sure to consider hiring a professional contractor to help me design and build my dream home so that I can make it exactly the way I want.

  4. It’s nice that you get to decide every feature of a custom home. My grandparents are getting really old and tend to take more falls. Because of this, I think they may want to get a custom home built to better accommodate their needs. Thanks for pointing out the pros and cons of custom homes.

  5. That is a good point that a custom home can be built where you want. Maybe it would be good to get a custom home built sometime soon. Then I would be able to have a home built out in the country.

  6. My husband and I have been saving money for a long time for a house, but we don’t know if we want to buy something or build something unique for ourselves. I love the idea of getting to choose the exact location of my house and having all the features specifically catered to me in my house. It would take a little bit more budgeting, but I think my husband and I can pull off our dream house with some help.

  7. It’s good to know that custom building your home lets you decide every product and feature that your new home will have. My wife and I are looking into our options for new homes, and building one is a possibility for us. We’ll be looking further into the benefits of building a custom home in the future.

  8. I find it awesome that you said that getting a custom home built will help a person get the right quality and room functionality that the homeowner likes. In my opinion, one should find a professional to install several electrical boxes in. Doing this will help create safe outlets to use in order to plug in all appliances and gadgets safely.

  9. Even if you said that building a custom home needs the homeowner to buy the land it will be built on, I find it cool that you said that getting one will fit one’s standards of quality and functionality. This convinced me to tell my sister about getting one as her first home. What qualifications should the builder have to choose them as a partner in making her house dreams come true?

  10. I like how you mentioned that with custom homes, you are able to decide every detail. I’ve also heard that they can be great for the elderly, as you can make a home design without stairs and bathrooms with rails. I’ve been thinking about building myself a custom home, though I haven’t been sure. I’ll keep this article in mind as I continue to research.

  11. This is some really good information about custom homes. I liked what you said about how with a custom built home you get to choose where the home location is. I wouldn’t want my home to be close to the road. So it would be nice to set the foundations location back on the land a little farther.

  12. Thanks so much for this post! I’ve been doing a lot of research on this, and this was a really great read. Keep up the great work on this blog!

  13. Great post! My wife and I are building a new home and have been doing a lot of research on the whole arduous process. It may take a really long time to finish this thing, but in the end I am sure it will be worth it. I like to think of it as an investment in my family more than anything. Thanks again, and keep up the great work on this blog!

    • Sounds like you are building a custom home Caleb. That’s a huge project to take on, especially if you are acting as the contractor. It can also be very rewarding as it is one of the most important things you can do for your family. Good luck with everything and thanks for commenting, John

  14. Very good breakdown of some difficult-to-define pros and cons when weighing your home building options. Thanks for sharing.

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