Building Your Dream Home: Custom or Production?

What is the first step in the home building process? Before you even begin your land search, you'll need to decide if you want to build a custom home or a production home.

We've been in the home building business long enough to know that one solution doesn't fit all. And if you're just getting started in the home building process, you're likely wondering about the differences and which is right for your family.

In this episode we're here to help you decide which is right for your budget, timeline, and vision. Mark Rasch from Benchmark Homes in St Louis, MO joins Kim and Melody to help you sort through the differences and to discuss the pros and cons for each approach!

You can read the transcript below, or you can...

Listen on Apple Podcasts

LISTEN NOW ON APPLE PODCASTS

Episode Tool Box:

Building Your Dream Home: Should I Build Custom or Production?

SEASON SIX, EPISODE ONE | TRANSCRIPT

From project size and design flexibility to timelines, costs, and builder relationships, this episode is an essential primer for anyone starting their home-building journey.


Understanding the Three Types of Home Builders

When it comes to building a new home, one size definitely doesn’t fit all.

Custom Builders

Custom builders like Hibbs Homes build from the ground up. Clients work with architects to design a home that fits both the lot and the budget, choosing every finish and feature. The process takes more time and involves more decisions, but results in a truly one-of-a-kind home tailored to the homeowner’s lifestyle.

Semi-Custom Builders

Semi-custom builders work from pre-existing plans that can be modified. Clients may adjust layouts, add rooms, or select finishes from a curated range of options. These builds cost less than full custom homes and take less time, but they offer limited flexibility compared to true custom design.

Production Builders

Production builders specialize in volume and efficiency, often constructing entire neighborhoods of similar homes. Buyers select from a handful of plans and standardized finish packages, keeping costs and timelines predictable. While customization is minimal, production homes make new construction accessible to more families.


Construction Price, Process & Timeline Differences

Each build type varies in both process and pacing.

  • Production Homes: move fastest because there is a limited number of pre-drawn plans that skip lengthy permitting reviews. Once financing is clear, construction begins immediately and can finish in as little as a few months.
  • Semi-Custom Homes: an additional level design and selection but still move efficiently.
  • Custom Homes: take the longest due to the one-of-a-kind designs, site prep, permitting, and client decision-making.

Kim and Mark note that production builders’ efficiencies come from repetition and simplified structures, while custom homes involve unique engineering, specialized trades, and extensive client collaboration.


Construction Cost & Quality Considerations

Mark explains that cost differences reflect flexibility and materials, not necessarily quality of workmanship.

  • Production homes start with what’s called builder-grade finishes. These are affordable materials that appeal to most buyers. Upgrades quickly add to the base price.
  • Semi-custom homes offer mid-range selections and limited design changes.
  • Custom homes are priced more transparently: mark-ups stay consistent, and costs vary based on the materials and features you choose.

Kim points out that production and semi-custom builders often profit most from upgrades and change orders, while custom builders typically maintain a steady pricing structure.


Real-World Examples of Custom Creativity

The world of true custom building allows for so much creativity:

  • Indoor slides connecting the main floor to the basement.
  • Safe rooms and gun vaults integrated beneath porches.
  • Custom wood-burning systems that heat entire equestrian properties.
  • Man-made lakes used to irrigate pastures with reclaimed well water.

These one-of-a-kind features highlight what’s possible when the design process isn’t bound by standardized plans.


How Builders Manage Selections & Design

In the production world, options are limited to pre-selected finishes from preferred suppliers. Semi-custom builders allow modest variations. Custom builders, by contrast, provide a blank slate, partnering with or offering in-house designers to guide clients through finishes, fixtures, and materials.

The design phase alone can take 90–120 days, followed by permitting and bidding before construction begins. While the process is slower, every decision is curated exclusively for the homeowner’s vision and goals.


Builder Relationships & Trust

Building a home means entering a long-term partnership. Kim and Mark stress that the builder-client relationship is just as important as the plans themselves.

Because custom home projects can take one to two years, you should:

  1. Choose a builder you genuinely like and trust.
  2. Check references from clients in different stages—design, construction, and post-move-in.
  3. Visit job sites to observe cleanliness, craftsmanship, and organization.
  4. Confirm your builder is active in professional organizations such as the local Home Builders Association (HBA) and, by extension, the NAHB.

The builder-client relationship to a marriage: “There will be challenges, but how you handle them together defines the experience.”


Choosing the Right Builder for You

Each approach offers distinct advantages:

  • Production: Faster builds, lower cost, limited choices.
  • Semi-Custom: Balanced design flexibility and timeline efficiency.
  • Custom: Maximum personalization and craftsmanship.

When deciding which path to take, consider:

  • Your timeline and patience for decision-making.
  • Your budget and appetite for customization.
  • Whether you already own land or need a lot in a development.
  • How much design control you want in everything from layout to lighting.

There really is no wrong way to build your dream home, the path you choose comes down to the approach that best fits your needs, budget, and vision. Whether you prefer the speed of production, the balance of semi-custom, or the full creative freedom of a custom build, the right builder will guide you through each step with integrity and transparency.

For more information visit www.artofcustompodcast.com or find us on Facebook and Linkedin as The Art of Custom be sure to subscribe to get the latest episodes and please rate and review! The Art of Custom is produced by HugMonster Sound with original music by Adam Frick-Verdine. Thanks for listening.