Building a custom home is the dream of dreams—a lifelong gift, though it has its challenges. Today, I’m covering the first phase of our custom home-building process in Spokane, from land acquisition to completing most of the main build. I’ll save design tips and advice for Part 2.
This process—from managing budgets and complex site work to choosing between DIY and hiring professionals—requires strong planning, flexibility, and resilience. Did I mention resilience? Yes, a lot of resilience. In this post, I’ll walk you through the highs and lows of our custom home-building experience in North Spokane and share key takeaways for anyone on a similar path.
Decision to Build vs. Buy in North Spokane
In 2019, we began thinking about moving from our starter home into a more of a “forever home” with room to roam or grow. Rising real estate prices and our careers encouraged us to consider buying land rather than saving for an existing home as prices climbed. The idea of crafting a home suited to our lifestyle, combined with the budget advantage of starting with land, led us toward a custom build.
Initially, we planned a cash-funded, long-term project, spreading costs and building equity through site improvements. We were lucky to find land from someone we knew and to set up a seller contract. With Conrad—my husband and a General Contractor—leading the project, we felt optimistic about the workload. However, we quickly realized a fully cash-funded build wasn’t possible due to site development costs and a longer timeline. By 2022, we transitioned to a construction loan to accelerate the project and bring in more support. We'll get into that process in a bit.
Key Takeaway: Building a custom home requires a realistic understanding of both financial and logistical commitments. A long-term approach offers some financial flexibility, but may not be possible for all timing needs or out-of-pocket budgets.
Land Acquisition Strategy for Spokane, WA
Purchasing land was our first major step. We chose a seller contract, putting down 20% equity from our existing home and avoiding conventional financing. This gave us flexibility and required interest-only payments for the duration of the loan with a 3-5 year balloon repayment.
Related: Don't know what a seller contract looks like? Get in touch to talk about different ways to purchase land!
Our seller contract allows us the opportunity to cover some upfront costs, like $30,000 for well drilling and time-intensive land excavation and grading. The land’s topography posed more challenges than we expected, so we bought an $8,000 piece of excavation equipment. Conrad spent two summers doing all the grading work himself, saving us thousands. Still, road building and gravel costs added up, testing our initial budget. The good news, all this work built equity in the land. By the time we were ready to apply for a construction loan, our land’s value had increased significantly, allowing us to pull the loan without a down payment. Upon receiving the construction loan, we were able to pay off the seller with the final balloon payment. I'll talk more about construction loans in the next section.
Key Takeaway: Seller contracts can offer flexibility, but they often require a large down payment and strict timelines. It is important to fully understand your repayment schedule alongside other upfront costs you will be responsible for on your land.
Building Budget and Financing a Custom Build
I mention it so casually, but securing that construction loan wasn’t easy—this is where budgeting gets real! To qualify, you need a reliable estimate of total construction costs, which begins with a house design. Our design had to meet family needs and be straightforward enough for Conrad to do much of the work himself, in a timely manner. Once we finalized the design, we detailed estimates for framing, septic, electrical, interior finishes, and more. Since Conrad was handling a lot, estimating costs was challenging and took tons of our time.
Once approved, the construction loan came with a ticking clock, as costs always increase over time. Tackling projects ourselves saved us money, but some were more time-consuming and challenging than expected. Unexpected expenses and rising supply costs tested our initial budget, but planning for lots of incidental costs, we stayed within a manageable range - thank goodness!
Key Takeaway: Set a detailed budget and allow for a significant contingency fund. Custom builds, especially on challenging land, often bring higher-than-expected site development costs. Budgeting realistically and including reserves for surprises can prevent financial strain.
DIY vs. Hiring Spokane Professionals
We constantly weighed the choice of DIY versus hiring professionals. So many conversations, you guys. Conrad is a skilled contractor and could manage much of the project, saving us money on framing, drywall, painting, and some plumbing. However, this choice sometimes led to time delays and challenging moments.
In construction, everything must happen in a specific order, so our delays often affected subcontracted work or our own timelines for getting work completed. Drywall and painting took more time than we anticipated. Drywall - next time, we’d hire out drywall. For electrical, we chose to work with an electrician friend to take up on the side, which seemed like a good cost savings. But, sadly, it led to code issues, delays, and added costs. Some tasks, like drywalling and complex electrical work, might have been better left to a larger team or professional company.
But, we did our research when outsourcing. For example, we sought multiple quotes for our septic system as the initial quote was nearly cost-prohibitive and included unnecessary components and maintenance. At first, we were very worried, but after getting multiple bids, we realized we could install a more straightforward system which was a huge cost-savings.
Key Takeaway: DIY can save money, but it may cost time. Consider the time it takes. Then consider the time it takes again, as well as the skills required and risks of setbacks before deciding which tasks to handle yourself. When outsourcing, vet professionals carefully and always get multiple bids.
Our Real Estate and Building Experience Helped, but wasn't Essential
Throughout this process, our career choices have made an impact. My real estate experience made purchasing land easier, and Conrad’s contractor skills were invaluable. Still, even without these skills, building a custom home is possible. A quality real estate agent can make the land acquisition process smoother and connect buyers with reputable builders, surveyors, and contractors and provide realistic guidance on budgets and timelines.
Key Takeaway: A skilled real estate agent can be invaluable for a custom home build, especially with land acquisition and different sales contracting options.
Custom home building is a rewarding yet demanding process that requires mental, emotional, and financial resilience. I would absolutely love to help you with this process. If I could distill my thoughts into a handful of things to consider before embarking on this journey, here thy are:
- Vision and Flexibility: Custom builds allow for personalization, but flexibility is essential. Site conditions, material availability, and budget limitations will basically always impact the outcome.
- Budgeting and Financial Planning: Start with a detailed budget, but expect changes. So. Many. Changes. Build a contingency fund and adjust plans as needed.
- DIY vs. Professional Help: DIY saves money but can cost time. Consider skill level, time, and potential setbacks before taking on tasks.
- Professional Guidance and Teamwork: Surround yourself with trusted professionals to reduce stress and ensure quality.
Thinking about building your own custom home in Spokane? Our experience taught us invaluable lessons, and I’m here to help. Get in touch early in the land acquisition process to allow ample time for this once-in-a-lifetime opportunity. Starting early, breaking the process into smaller steps, and staying realistic about the commitment involved can turn your dream home into reality.
Stay tuned for a detailed post on the design process coming soon! So excited for that one!
