New Construction
Building A New Home
Building a home can and should be a wonderful experience. But, few people are prepared for the journey. This can make the process stressful and confusing. But, with the right help and guidance the stress and confusion can be eliminated. The following are some of the steps you will go through.
Ask For Help Early
When you start thinking about building a home you may want to start a house book. This should occur about six to nine months before you start the actual building process. This collection of ideas, questions and finishes will be of major assistance when you begin the process. It will allow you to develop ideas of what you want in a floor plan, finishes for the house, selections of types of cabinets and appliances, questions you might have for the builder, Realtor or lender. Don't eliminate anything. It will be invaluable in the future.
Depending on the house you want to build, it can take from seven months to a year to reach completion. Therefore, if you want to be in your home by a specific date, you have to work backwards to determine a start date. As you approach the start date begin to think about the type of house you want, a Production home, Custom home or a Design Build home (we will explain the differences later). Talk with Realtors. Make sure your Realtor undersatands financing, is knowledgeable about the builders in your area and the building process. Make sure your Realtor understands financing, is knowledgeable about the builders in your area and the building process. Have the Realtor explain what services they will provide throughout the entire building process. A knowledgeable Realtor can save you time, heartache and money.
Your building team should consist of a builder, Realtor, Attorney and Architect.
It May Cost More Then You Think
The key to building a house is to have a budget and stick with it. Before you begin the building process, take the time to meet with your lender and your Realtor. Review what loan amount you can be approved for by the lender. What your monthly payments will be. See if that fits your family budget. Remember, when you begin selecting finishes and options for the house there are a lot of choices that can increase the final price.
Review how much you are going to make in a down payment. Where will your down payment come from? Will it be from the sale of your current home? If so, your Realtor can help with an estimate of how much you will net from the sale.
Choosing Your Builder
In general when building a home there are basically three types of builders:
Production Builders – These are builders who develop large subdivisions. They may be the only builder or there may be one additional builder. The builder has specific floor plans. You have the option to select the floor plan that is closest to what you want. The builder allows minimal changes.
Custom Builders – These builders will usually be in a subdivision of several different builders. They purchase specific lots from a land developer. Therefore, you not only have to select the floor plan you want but also the lot location. Watch for lot premiums ( an up charge on the lot do to a better location or if it is treed). The builder will allow you to make floor plan changes, exterior changes and will work with you to build a house closest to what you want.
Design Build Builders - These builders will take the concepts and ideas of what you want in a home. The builder will work with you and an architect to make it a reality. You will select everything in the house from room layouts to the doorknobs. In most cases, you will have to currently own your lot or acerage or purchase the land before construction begins.
Where Do We Build
When selecting the location for your house, you will want to review information such as neighborhoods, schools, ease to shopping, access to work, etc. You should also consider where the house will be in the subdivision. What will be built around it? What deed restrictions does the neighborhood have? Does it have a homeowners association? What is the cost? Are there Community Development fees that will be added to your taxes?
If the lot is outside a subdivision there are additional considerations. Where are the taps for sewer and water? Does the lot require a well and septic system? Where can they be placed? Will the state allow a driveway on to the main road, etc? There are many questions that impact cost that need to be answered by the Realtor and/or builder before you purchase your lot or acerage.
The Building Process
Your loan is approved, the plans are complete and the builder is ready. During the building process you and your Realtor should be involved and communicating. Your Realtor should go with you to the decorating center. The process at the decorating center is like putting a child in a penny candy shop with $200.00. There are so many choices. Your cost can quickly increase. A Realtor can advise you regarding what choices are best for resale value.
Most importantly, your Realtor should check the progress of your house every two weeks. This allows the Realtor to explain to you what will happen as you go through the process. Also, knowing the selections you made, the Realtor can advise you regarding what choices are best for resale value.
Most importantly, your Realtor should check the progress of your house every two weeks. This allows the Realtor to explain to you what will happen next as you go through the building process. Also, kowning the selections you made, the Realtor can catch any mistakes in options or selections. The superintendent can then be advised. Thus, you avoid costly cahanges.
With a Production or a Custom builder, the builder obtains the construction loan. You pay for the house when it is finished.
With a Design Builder, you carry the construction loan. This allows you to write off the loan interest for tax purposes. You control how the builder is paid. There are usually five draws at various times to pay the builder. Your Realtos should be able to explain the draw process to you and the benefits of controlling the money.
Closing And Moving In
As you near completion, your Realtor should be coordinating with your builder, lender, title company and your attorney. After the title company prepares the closing documents, your attorney will want to review the documents prior to closing.
If you obtained the construction loan, then upon completion of the house the final draw will be paid to the builder.
The Cliffords
Remember, the person in the model house works for the builder. You need someone working on your behalf. So, it does not matter if you are buying from a Production, Custom or Design Build builder, you need someonewho understands the building language, process and represents you.
As Realtors, we have been representing clients for 30 years. Approximately 35% of our business is new construction. Also, we have personally built two Design Build homes. We have the knowledge and experience you need. We can help make building a home a fun and enjoyable process for you.
For an initial consultation to answer any of your questions
Please call Bill and Susan Clifford
800-759-1112 or 614-785-7018
e-mail: Cliffords@HousesInColumbus.com
Review how much you are going to make in a down payment. Where will your down payment come from? Will it be from the sale of your current home? If so, your Realtor can help with an estimate of how much you will net from the sale.
Choosing Your Builder
In general when building a home there are basically three types of builders:
Production Builders – These are builders who develop large subdivisions. They may be the only builder or there may be one additional builder. The builder has specific floor plans. You have the option to select the floor plan that is closest to what you want. The builder allows minimal changes.
Custom Builders – These builders will usually be in a subdivision of several different builders. They purchase specific lots from a land developer. Therefore, you not only have to select the floor plan you want but also the lot location. Watch for lot premiums ( an up charge on the lot do to a better location or if it is treed). The builder will allow you to make floor plan changes, exterior changes and will work with you to build a house closest to what you want.
Design Build Builders - These builders will take the concepts and ideas of what you want in a home. The builder will work with you and an architect to make it a reality. You will select everything in the house from room layouts to the doorknobs. In most cases, you will have to currently own your lot or acerage or purchase the land before construction begins.
Where Do We Build
When selecting the location for your house, you will want to review information such as neighborhoods, schools, ease to shopping, access to work, etc. You should also consider where the house will be in the subdivision. What will be built around it? What deed restrictions does the neighborhood have? Does it have a homeowners association? What is the cost? Are there Community Development fees that will be added to your taxes?
If the lot is outside a subdivision there are additional considerations. Where are the taps for sewer and water? Does the lot require a well and septic system? Where can they be placed? Will the state allow a driveway on to the main road, etc? There are many questions that impact cost that need to be answered by the Realtor and/or builder before you purchase your lot or acerage.
The Building Process
Your loan is approved, the plans are complete and the builder is ready. During the building process you and your Realtor should be involved and communicating. Your Realtor should go with you to the decorating center. The process at the decorating center is like putting a child in a penny candy shop with $200.00. There are so many choices. Your cost can quickly increase. A Realtor can advise you regarding what choices are best for resale value.
Most importantly, your Realtor should check the progress of your house every two weeks. This allows the Realtor to explain to you what will happen as you go through the process. Also, knowing the selections you made, the Realtor can advise you regarding what choices are best for resale value.
Most importantly, your Realtor should check the progress of your house every two weeks. This allows the Realtor to explain to you what will happen next as you go through the building process. Also, kowning the selections you made, the Realtor can catch any mistakes in options or selections. The superintendent can then be advised. Thus, you avoid costly cahanges.
With a Production or a Custom builder, the builder obtains the construction loan. You pay for the house when it is finished.
With a Design Builder, you carry the construction loan. This allows you to write off the loan interest for tax purposes. You control how the builder is paid. There are usually five draws at various times to pay the builder. Your Realtos should be able to explain the draw process to you and the benefits of controlling the money.
Closing And Moving In
As you near completion, your Realtor should be coordinating with your builder, lender, title company and your attorney. After the title company prepares the closing documents, your attorney will want to review the documents prior to closing.
If you obtained the construction loan, then upon completion of the house the final draw will be paid to the builder.
The Cliffords
Remember, the person in the model house works for the builder. You need someone working on your behalf. So, it does not matter if you are buying from a Production, Custom or Design Build builder, you need someonewho understands the building language, process and represents you.
As Realtors, we have been representing clients for 30 years. Approximately 35% of our business is new construction. Also, we have personally built two Design Build homes. We have the knowledge and experience you need. We can help make building a home a fun and enjoyable process for you.
For an initial consultation to answer any of your questions
Please call Bill and Susan Clifford
800-759-1112 or 614-785-7018
e-mail: Cliffords@HousesInColumbus.com
