Building a Custom Home in Vienna, VA: A Local Guide
We found a lot and built our own custom home in Vienna, and I also help buyers with the financing side. Here’s what I’ve learned from both perspectives about finding a lot, choosing a builder, budgeting and financing a custom build.
Building in Vienna Is Different From Buying
Building a custom home in Vienna can be an incredible opportunity, but the process is very different from simply buying an existing home.
I know that firsthand. Our family went through the process of finding a lot and building our own custom home in Vienna. I also work with buyers on the financing side, so I have seen the process from both perspectives.
Vienna has become a major market for new construction for many of the same reasons people want to live here in the first place. You have established neighborhoods, mature trees and desirable lots, all within easy reach of Tysons, Washington, D.C., Metro access and the rest of Northern Virginia.
The challenge is that there is very little undeveloped land left. In most cases, building a new home means finding an existing property, purchasing it for the lot and starting over.
If you are considering that route, here are some of the most important things to understand before you begin.
Finding a Lot in Vienna
If you are thinking about building in Vienna, finding the right lot is often the first step, and it can take some patience.
Experienced local builders can be a great resource in this process. Many have longstanding relationships in the community and stay closely connected with homeowners who may be considering selling. As a result, they sometimes know about potential lots before they ever reach the open market.
Properties also come onto the traditional market, and occasionally homeowners sell directly to builders or buyers.
We tried several approaches ourselves when we were looking. At one point, we even sent letters to homeowners saying that we were interested in purchasing if they ever considered selling.
Ultimately, that was not how we found our property.
We found a builder we really liked and trusted who happened to have a lot available in an area where we wanted to live. The combination worked out extremely well for us.
That experience taught me not to think about the lot search and builder search as completely separate processes. If you are serious about building in Vienna, it can be helpful to talk with several builders early, understand where they are active and learn what properties they may have available or coming up.
Spec vs. Semi-Custom vs. Fully Custom
Not every new home in Vienna is built the same way. One of the first decisions is determining how much control you want over the finished product.
Spec Home
A spec home is built by the builder using their plans, design and financing.
You are essentially purchasing a completed new home, or one that is already well into construction. If you get involved early enough, there may be opportunities to make some selections, but the home itself was not designed specifically for you.
From a financing perspective, this typically works much like buying any other completed home.
Semi-Custom Home
Semi-custom falls somewhere in the middle.
The builder has generally already selected the lot, plans and major structural components of the house. Depending on when you enter the process, you may be able to choose finishes such as flooring, countertops, tile, paint, fixtures and other design elements.
You get some ability to personalize the home without taking on every decision involved in a fully custom project.
Fully Custom Home
With a fully custom home, you are involved from the beginning.
You may acquire the lot, work with the builder and architect on the plans, determine the footprint and layout, and make decisions about everything from room sizes to finishes.
It offers the greatest flexibility, but it also involves more decisions, more planning and a different financing structure.
This is the route we took with our own home.
Choosing a Custom Home Builder in Vienna
There are a number of established builders working throughout Vienna, including Fisher Custom Homes, JDA, Cloud IX, Reel Homes, Evergreene and others.
They do not all approach building the same way.
Some focus primarily on fully custom luxury homes. Others may offer a combination of spec and semi-custom properties. Builders also differ in architecture, standard features, pricing, design process and the level of customization they offer.
My advice is to start by looking at what they actually build.
Look through their portfolios. Tour their homes when possible. Pay attention to the quality, floor plans and architectural styles. Ask what is included as standard and what is considered an upgrade.
Then meet with them.
I think choosing a builder is a little like choosing a doctor. Experience and expertise matter, but so does the relationship.
Building a house can be an emotional process. Plans change. Products become unavailable. Costs move. Decisions need to be made quickly. You are going to spend a lot of time communicating with your builder, so finding someone you trust and communicate well with is important.
How Long Does It Take to Build a Custom Home in Vienna
For a fully custom home, I would think about the process in terms of the entire project, not just construction.
Finding the lot itself can take time. We searched for about a year before finding ours.
Once construction begins, the timeline can vary substantially based on the complexity of the home, permitting, materials, selections and the builder.
Our home was completed in about 10 months, which was very fast. Other projects can take considerably longer. A reasonable expectation for the actual build can range from roughly nine months to two years depending on the project.
If you purchase a spec home or enter a semi-custom project that is already underway, the timeline can obviously be much shorter.
Understanding the True Cost of a Custom Home
One of the biggest mistakes I see buyers make is focusing on the initial construction price without understanding exactly what that number includes.
This is particularly important with allowances.
A builder might provide an allowance for appliances, lighting, flooring or another category. The important question is whether that allowance realistically covers what you plan to select.
For example, a kitchen allowance can disappear very quickly once you start selecting appliances, cabinetry, fixtures and other finishes.
My advice is to make as many selections as reasonably possible before finalizing your contract and financing.
You will never anticipate every change. Something will almost certainly come up during construction.
But the more you understand upfront, the better you can establish a realistic total budget.
That matters because construction overages may need to be paid out of pocket. You should not assume that every upgrade or change order can simply be added to the loan later.
Financing a Custom Home in Vienna
Financing depends heavily on how you are buying the home.
If you are purchasing a completed spec home, or buying a semi-custom home that the builder is financing during construction, you will generally use traditional mortgage financing when you purchase the finished property.
A fully custom home is different.
If you are acquiring the lot and paying a builder to construct the home, you will typically need construction financing.
There are two common approaches.
One-Time Close Construction Loan
A one-time close construction loan combines the construction financing and permanent mortgage into one transaction.
The lender reviews the land acquisition, building contract, plans, specifications and total project cost.
Depending on the program and borrower, you may need to contribute roughly 20 to 25 percent of the total project cost, although requirements vary by lender and individual circumstances.
One of the major advantages of this structure is the ability to establish the permanent financing as part of the transaction rather than having to refinance the entire construction loan when the home is completed.
For the right borrower, it can also provide valuable interest rate protection during a project that may take a year or longer.
Two-Time Close Construction Loan
Another option is a construction loan followed by separate permanent financing after the home is complete.
This structure can make sense in situations where, for example, you still own your current residence while the new home is being built.
Once construction is finished and circumstances allow, the construction loan can be refinanced into a permanent mortgage.
The important difference is that your final mortgage rate may not be established until later in the process. That creates interest rate risk during construction.
Neither strategy is universally better. The right structure depends on your existing home, income, assets, liquidity and plans for the finished property.
This is why I recommend discussing financing before you sign a building contract or commit to a lot.
Renovate or Tear Down?
Not every older Vienna home needs to be torn down.
There are homes built in the 1990s and 2000s where a substantial renovation may make much more sense than starting over.
With some older homes from the 1960s and 1970s, the economics and limitations of the existing structure can make rebuilding more attractive.
The answer is very property specific.
Start with what you ultimately want from the house. Can the existing footprint accommodate it? Can the home reasonably be expanded? What would a major renovation cost compared with new construction?
Sometimes renovation is clearly the answer. Sometimes rebuilding is.
The important thing is to evaluate both before making the decision.
What We Learned From Building in Vienna
Our experience worked out very well, but building a custom home taught us how many moving pieces are involved.
A custom home gives you the opportunity to create something specifically for the way your family lives. That is what attracted us to the process, and it is one of the reasons new construction continues to be such a significant part of the Vienna housing market.
If you are at the beginning of that process, getting the builder, property and financing strategy aligned early can make everything that follows much easier.
First, talk to multiple builders. Learn how they work, look at what they have built and understand what they may have available.
Second, understand your costs before construction begins. Pay close attention to allowances and make as many selections as possible upfront.
Third, figure out the financing early. Your financing strategy can influence how you acquire the lot, when you sell your existing home, how much cash you need and what type of building arrangement makes sense.
More About Living in Vienna
Building is only one part of deciding whether Vienna is right for you. If you are researching the area, these resources provide more of our firsthand perspective on living and buying here: