Building a new home is one of the most significant investments you'll ever make. If you're exploring new construction in Omaha, Elkhorn, Papillion, Bellevue, or surrounding areas, you're facing a fundamental decision: Should you work with a custom home builder or a production builder?
This isn't just about budget—it's about lifestyle, personalization, timeline, and how involved you want to be in the building process. The right choice depends on your specific situation, and making the wrong choice can lead to frustration, compromises you didn't anticipate, or spending more than necessary.
After building custom homes throughout the Omaha metro area, we've worked with hundreds of families navigating this decision. In this comprehensive guide, we'll break down exactly what distinguishes custom builders from production builders, the true costs of each approach, and how to determine which path is right for your family.
Production builders (sometimes called tract builders or volume builders) construct multiple homes—often in planned neighborhoods—using a limited selection of floor plans and design options.
How Production Builders Work:
Production builders purchase large parcels of land, develop entire neighborhoods, and build homes using repeatable systems and processes. They offer efficiency through standardization.
Typical Production Builder Process:
Production Builder Characteristics:
Examples in the Omaha Area: Large national production builders active in Omaha include companies like Lennar, D.R. Horton, and Pulte Homes. Regional builders include companies focusing specifically on Nebraska and Iowa markets.
Custom home builders create unique homes tailored specifically to individual clients, either on the client's existing lot or on land the builder helps them acquire.
How Custom Home Builders Work:
Custom builders guide you through designing and building a home that reflects your specific lifestyle, preferences, and needs. Each project is unique.
Typical Custom Builder Process:
Custom Builder Characteristics:
At Davis Contracting, we fall into the custom builder category, though we also offer select house plans that clients can customize for their specific needs and lots.
Let's break down the specific differences across critical decision factors:
Production Builders:
Custom Builders:
Winner for Flexibility: Custom builders, without question. If you have specific needs, unique lifestyle requirements, or a particular vision, custom building is the only way to achieve it.
When Production Wins: If you find a floor plan you love and don't need significant modifications, production builders offer that plan at a lower cost with a faster timeline.
This is where the decision gets complex. Let's break down the true costs:
Production Builder Costs:
Base Price: $150-$250+ per square foot (Omaha area, 2025)
What's Often NOT Included:
Total Investment: $300,000-$600,000+ for typical 2,000-2,500 sq ft home in Omaha suburbs
Custom Builder Costs:
Base Price: $200-$350+ per square foot (Omaha area, 2025)
What IS Included:
Total Investment: $400,000-$1,000,000+ depending on size, finishes, and lot
The Cost Reality:
Production builders appear less expensive initially, but many buyers spend $50,000-$150,000 in upgrades trying to personalize their home—closing much of the cost gap.
Custom builders cost more per square foot, but you get exactly what you want from the beginning. There's no "base model" you're upgrading from.
When Production Builder Costs Win:
When Custom Builder Costs Make Sense:
Production Builder Timeline:
Custom Builder Timeline:
Winner for Speed: Production builders, assuming they have immediate lot availability and your desired plan ready to go.
When Custom Timeline is Worth It: If you want a home perfectly suited to you, the additional months invested in design prevent decades of living with compromises.
Production Builders:
Custom Builders:
Winner: Custom builders for location flexibility. If you have specific neighborhood requirements, land you love, or want to be in an established area, custom building is often your only option.
When Production Wins: If they're building in a neighborhood you love, you get finished infrastructure (roads, utilities, sidewalks) and neighborhood amenities without the uncertainty of future development.
You can explore our custom home projects in various locations including Omaha, Elkhorn, Papillion, Bellevue, and Bennington.
Production Builders:
Custom Builders:
Winner: Custom builders for those who care about specific brands, have particular aesthetic visions, or want high-end finishes throughout.
When Production Materials Are Fine: If you're happy with contemporary, quality finishes and don't have strong preferences about specific brands or materials, production builder options work well.
Production Builders:
Custom Builders:
Winner: Depends on your preference. Some clients prefer the hands-off efficiency of production building. Others want the involvement and attention of custom building.
Production Builders:
Custom Builders:
Winner: It's complicated. Production homes are safer for resale because they appeal to average buyers. Custom homes appeal intensely to the right buyer but may take longer to sell.
Important Note: If you're building your forever home, resale value is less critical than building what you'll love for decades.
Production Builders:
Custom Builders:
Winner: Custom builders if energy efficiency or specific performance standards are priorities. You control every specification.
When Production is Fine: Modern production homes are reasonably efficient. If standard efficiency meets your needs, the cost premium for high-performance custom building may not be justified.
Let's look at two hypothetical 2,400 square foot homes to understand true cost differences:
Base Home: $165/sq ft = $396,000
Lot Premium (cul-de-sac): $20,000
Upgrades:
Timeline: 6 months from contract to move-in
What You Get:
Lot Purchase: $80,000 (half-acre in established neighborhood)Design & Architectural Services: $18,000Construction: $235/sq ft = $564,000 (includes all selected finishes)
What's Included in Construction Cost:
Timeline: 12 months from design start to move-in
What You Get:
Cost Difference: $138,000 (26% more for custom)
Is the Custom Premium Worth It? That depends entirely on your priorities:
The production home buyer:
The custom home buyer:
Neither choice is wrong—they're optimized for different priorities.
Choose a production builder if:
1. You Find a Floor Plan You Love If you walk through models and genuinely love an existing plan without wanting significant changes, production building makes excellent sense. Why pay for custom design when you've found what you want?
2. You're Working with a Defined Budget Production builders can deliver good homes at lower per-square-foot costs. If budget is your primary constraint, production building maximizes space for your investment.
3. You Value Speed If you need to move quickly—job relocation, lease ending, life change—production builders can deliver faster.
4. You Want Neighborhood Amenities Many production builders develop neighborhoods with pools, clubhouses, parks, and walking trails. If these amenities are priorities, production building includes them.
5. You Prefer Hands-Off Process If you don't want to be deeply involved in selections and decisions, production builders' streamlined process may suit you better.
6. You're a First-Time Builder The structured, limited-choice process can be less overwhelming for first-time home buyers.
7. The Location Works for You If production builders are developing in neighborhoods you like, you get finished infrastructure without waiting for new development.
Choose a custom builder if:
1. You Own Land or Want Specific Location If you've inherited land, own property, or want to build in a specific established neighborhood, custom building is likely your only option.
2. No Standard Floor Plan Works If you've looked at production builder models and consistently think "I wish this wall was here" or "I'd want to change this," custom design will serve you better.
3. You Have Specific Lifestyle Needs
4. You Have Strong Design Preferences If you have clear visions about architectural style, specific finish preferences, or particular aesthetic goals, custom building lets you achieve them.
5. Quality is Your Top Priority When you want to control exact quality levels in every category and aren't limited to predetermined options.
6. You Want Energy Performance If net-zero energy, passive house standards, or specific efficiency targets matter to you, custom building gives you complete control.
7. The Home is Your Forever Investment If you're building your long-term home (20+ years), the investment in getting exactly what you want pays dividends for decades.
8. You Value the Design Process Some clients genuinely enjoy the design process—working with architects and designers to create something unique. If this appeals to you, custom building is far more rewarding.
We've completed numerous custom homes throughout the Omaha area, including our Stillwater Lake custom home and our custom home in Valley, NE. You can explore more examples in our portfolio.
Some builders (including Davis Contracting) offer a hybrid approach:
Semi-Custom Building Means:
When Semi-Custom Works Best:
Currently, we have two lots available in Bennington where clients can select from our house plans and customize them for their specific needs.
Before committing to either path, ask yourself:
About Your Lot:
About Design:
About Budget:
About Timeline:
About Involvement:
About Long-Term Plans:
At Davis Contracting, we've developed a design-build process specifically for custom and semi-custom home construction:
Step 1: Initial Consultation We discuss your vision, needs, budget, timeline, and whether you have land or need help finding the right lot. This conversation helps us determine if we're a good fit for your project.
Step 2: Design Agreement and Discovery During this phase, we work with you to understand:
You'll work with our designers and architects to create floor plans, elevations, and preliminary material directions.
Step 3: Design Options and Final Plan Creation We present design options with 3D renderings so you can truly visualize your home. We refine the design based on your feedback and create detailed construction documents.
At this point, you know:
Step 4: Material Selections and Budget Finalization We help you select materials across every category:
You make informed decisions with full transparency on costs. We create a final, detailed budget so you know exactly what you're investing.
Step 5: Contract and Construction With plans finalized and budget established, we create your construction contract and begin building your custom home.
Throughout construction:
Step 6: Final Walkthrough and Warranty Before closing, we conduct a comprehensive walkthrough, address any items, and ensure you're completely satisfied with your new custom home.
This process takes longer than production building, but it eliminates regrets and ensures you love your home for decades.
Let's dispel some myths:
Myth 1: "Custom homes always have cost overruns" Reality: When you work with a reputable design-build contractor who completes detailed planning and budgeting before construction, cost overruns are rare. Most overruns happen when clients make changes during construction or when planning was insufficient initially.
Myth 2: "I need to know exactly what I want before starting" Reality: Our design process helps you discover what you want. You don't need to arrive with complete plans—that's what we help you develop.
Myth 3: "Custom homes take years to build" Reality: While custom homes take longer than production homes, typical timelines are 8-14 months, not years. The design phase (where most time is invested) prevents problems and ensures satisfaction.
Myth 4: "Custom builders are all expensive" Reality: Custom builders work across budget ranges. The key is finding a builder who works at your budget level and being realistic about what's achievable within your constraints.
Myth 5: "I can just modify a production builder's plan" Reality: Most production builders severely limit modifications or charge premium prices for changes. If you need significant modifications, custom building often costs less than trying to modify production plans.
Here's a simple framework to guide your choice:
Choose Production Builder if you answer "yes" to most of these:
Choose Custom Builder if you answer "yes" to most of these:
Consider Semi-Custom if you answer "yes" to most of these:
We currently have several options for new home construction:
Available Lots: We have two lots available in Bennington where you can select from our house plans or create a custom design.
Custom Home Building: If you own land or find a lot you love anywhere in the Omaha metro, we'll work with you to design and build your dream home on that property.
Recent Custom Home Projects: Browse our portfolio to see recently completed custom homes:
House Plans: We're developing a selection of house plans that can be customized for your specific lot and preferences—offering the efficiency of proven designs with the flexibility of modifications.
If you're considering custom home building with Davis Contracting, here's what happens during your initial consultation:
We'll Discuss:
We'll Explain:
We'll Determine:
This consultation is free and carries no obligation. It's simply a conversation to explore whether custom home building with Davis Contracting is right for your situation.
Think about these long-term factors:
Energy Costs: Will you be happy with energy costs in a production home, or do you want to invest in higher-efficiency systems that reduce bills for decades?
Maintenance: Custom builders often use higher-quality materials that require less frequent replacement. The initial premium can be offset by longer material life.
Lifestyle Evolution: If your needs will change (aging in place, multi-generational living, etc.), custom design can accommodate future needs from the beginning.
Emotional Satisfaction: There's genuine satisfaction in living in a space you designed specifically for your family. For many, this emotional return justifies the cost premium.
Market Cycles: In strong markets, both production and custom homes appreciate. In downturns, quality custom homes in good locations often hold value better than production homes in overbuilt developments.
If you're considering building a new home in Omaha, Elkhorn, Papillion, Bellevue, Bennington, La Vista, or Council Bluffs, we'd love to discuss your options.
Whether you're certain custom building is right for you or you're still evaluating production vs. custom, our initial consultation can provide clarity.
Next Steps:
Building a new home—whether production or custom—is an exciting journey. The right choice depends entirely on your unique situation, priorities, and dreams.
Our goal is to help you make an informed decision and, if custom building is right for you, to guide you through a design-build process that results in a home you'll love for decades.
Let's start the conversation about your new home.
Davis Contracting LLC is a custom home builder serving the Omaha metro area. Our design-build approach creates personalized homes that perfectly fit your lifestyle, lot, and budget. Learn more about building your custom home.
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