Episode 29: Building A Custom Home with Tyler Wright
In this episode, Reside Broker/Owner Brady Bridges sits down with Tyler Wright, owner of Wright Homes, to talk about the process of homebuilding, how financing works for custom builds, and share his best tips for creating your dream home.
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Tyler said he grew up "helping" his dad build homes in East Texas before building the first home on his own in 2012. He previously worked for a large production builder before starting his own company and shifting to custom homes. Tyler's goal for Wright Homes is to offer a more personal relationship with his customers, giving them one point of contact for everything involving their home build: "I'm the salesperson, I'm the selection coordinator, and the ball doesn't get dropped as much when you're involved."
Unlike some other builders, Tyler is willing to build on a customer's land. If the clients don't already have floor plans, his first step is to visit their lot and discuss where they'd like the house to go and how many square feet they're looking to build. He works with different architects depending on the style of home the client is looking for. "I have hundreds of floor plans," Tyler says, and "a lot of times you can find a floor plan...with very small modifications instead of starting from scratch" to make the process easier. He says it typically takes 8-10 months to complete a home from the time of contract, depending on the terrain of the lot and if utilities are already in place.
Financing for a custom home generally works differently from a pre-existing home. Tyler says that if you own the land free and clear, it's usually not a problem to get a loan for the home because the clients can use the equity in the land as collateral. If there's a loan for the land then some lenders will want the clients to hold the property for a certain amount of time to build equity before building a home on it. Building the home is usually done on a "cost plus" basis, where the builder would be paid for the cost of the materials plus an additional percentage as a builder's fee. Knowing how each loan in structured is key for the builder and any subcontractors to be paid on time - some have limits on how often withdrawals can be made, or construction has to reach a certain stage.
If you're thinking about building a custom home, Tyler advises speaking to a few builders to find the one you'll be most comfortable working with. He said it's important to really listen to your builder on their expectations for the timeline, and understand that timeline is based on their experience building homes like yours - different homes and different builders will have different timelines. "Storage is overlooked a lot of times on floor plans," Tyler mentioned both closets and garages as not being paid enough attention. Overall, he said his best advice is to "rely on the experts, especially if it's your first home. Have a good agent that knows what they're talking about and trust your gut when you're talking to the builders."
Tyler can be reached at wrighthomes-tx.com.