Look this over before building your home!

Stress and frustration can take the enjoyment of building a new home.  Here is my top ten tips for easing the stress and avoiding the major setbacks.

 

  1. Plan it out

Doing exactly what you’re doing now- researching.

Go to your lot/land and have a look around.  Know which direction will the sunlight hit. Look at where the master bedroom sit.  You need to know how the position of the home will be directed.  How will the rain water drainage flow?

Look over the blue prints and think about your house lighting.  Do you include skylights and large windows?  Where will the light fixtures and electrical outlets be located?   You will always need a few more sockets than you think.

During this stage of the process it helps to fill your mind and creative connections with good ideas you would like to include.  Consider starting a Pinterest board for the rooms of the home.  File away some ideas of how you would like to plan them. This is also an effective way to communicate your plans and goals to the builder.

 

  1. Budget can be more than you expect so plan for it

You probably already have a good idea of what this whole process is going to cost you.  Well, you’re about to find it will cost a lot more.  There are just so many things that are likely to arise that you will not find in your contractor’s estimate.  This could include things like the costs of gas and electric meters, window coverings and many other needs.  Letterboxes, fencing, outdoor concrete and other points will not be included in the finishing costs.  These finishing costs can sometimes cost as much as 15 – 20% of the overall budget.  Then there will be zoning fees and site costs.  These are costs for preparing your property for the building project.

Then you will want to plan for any unforeseen costs.  As your building takes form, you may see some points that you would like to alter in the plan before the building is completed.

 

  1. You should pick the right builder

This is the most important point to mention.  No matter who you choose, you will be working with them for many months and years.  So, it is a good idea to choose a builder with whom you have a good connection.

Here are some of the major points that can indicate you have found a good match:

Credentials

You will want a builder who is licensed and insured. It is also a good sign if they are a card-carrying member of the National Association of Home Builders.

References

Never sign on with a builder if you have not fully examined his work history and reputation with previous customers. This has to be done before you sign anything. You will also want to conduct a thorough investigation to ensure that no complaints have been filed against this person.

Past work

Be sure you take a close look at some of the buildings this professional has completed in the past. Be sure to check if the level of construction is high. It will also help to know if the resale data on the houses they have built is especially high.

Style

Examining their past work.  Take the time to note the styles and design features.  Ask yourself if this type of look suits your own needs.  The builder may be very accomplished at a specific style, but if you are looking for something different they may not be able to provide the results you are looking for.

Personality

As mentioned, this builder will be someone you are working with for the foreseeable future.  You will want to be sure you are perfectly comfortable in their company and with their communications. If there is not a clear understanding and spark between you, you may find it more efficient to find a builder with whom you share an especially good connection.

Price

It will all be for nothing if the builder is out of your price range.

 

  1. Understand your agreement

Be sure you take the time to carefully read through the agreement you are making with your contractor. This will ensure that you are not met by any unpleasant surprises as you continue with the project.  Understand what may void any warranties if builder offers.

You will want to ensure that your agreement includes a cooling off period.  Does it also specify a timeframe that ensures the construction will be completed by a certain date?   You need to be sure to pay very close attention to the time frame for the payments you will provide.

It is a good idea to have your document looked over by a seasoned lawyer.   The lawyer can tell you if there are any blank spaces in the agreement and make sure that all variations made are legit and mutually agreed upon.

 

  1. Know what you’re entitled to during the process

If this is the first home you are building or if you are building an eco-friendly structure, you may be eligible for some specific grants, depending on your location. This can be a huge benefit to offsetting the overall cost for the home you are about to build.  To get more information about this, talk with your mortgage lender or check with your local counsel as well.  You may also ask about credit rebates.

Know that in Texas you have the right to inspect what you’re purchasing.  You should be apart of the building process from the plot preparations to the final walk through.

 

  1. Get your financing in order

If you are building your own home there is a good chance you will need to apply for proper financing.  A construction home loan is not the same as a normal home loan inasmuch as the lender will not be releasing the funds in one payment.  A certain amount will be provided for your building project and then the bank will make payments to the builder as they find convenient. These intermittent payments are called, Draws. These draws will be made every time a stage of the building process has been completed.

Another way that these loans can be different is in the size of the loan the lenders require. Because a construction loan is always riskier than a regular loan, your lender may ask for as much as a 20% deposit.

You must be prepared before you begin searching for financing. Your construction loan will be based on the assumed value of the property when the construction is complete. So, you will need to present a full plan of the property that has been thoroughly costed.

 

As the construction starts:

 

  1. Communicate constantly

All throughout the process you will want to make sure you are keeping good communications with your builder and tradesman. This will include getting regular updates on the process and progress of the construction process. Be sure to check in yourself as often as you can as well. Take a camera so you can photograph anything that you would like more information on later.

And remember that it is your house so you have every right to stick to your guns on anything. If you have researched your point your contractor should not tell you that something can’t be done unless you really are terribly mistaken. Of course, the costs can change, so be sure to keep an eye on this point. After all, you are the one who will have to live in the house and there is no reason that it should not be exactly as you want it.

 

  1. Look for ways to save

As you may imagine, it is an especially costly affair to have a house built and you will probably spend a lot more than you had originally intended. But there are always ways that you can save cash, if you look and you should begin looking from the very beginning. Shop around for every fixture, pipe, screw and rivet and you are sure to find something cheaper than what you were being offered. Get as many quotes as you can and look for the best supplier.

Then you can also save cash by choosing a lot that will not require much in the way of preparation before the construction can commence. By reducing the amount of ground that needs to be leveled and trees that will need to be cleared away, you will further reduce the overall cost of the project.

 

  1. Get an independent inspector – (M&M Home Pro Inspections)

You will need a different inspector for each stage of the construction and this will allow you to rest assured that your home is being built to last and on par with the proper building codes and regulations of your areas. You will want to complete an inspection at each of the following stages.

Foundation (pre-pour inspection):

This will ensure that your foundations and footings are solid and that your drains are all functional. You can ensure the grading and drainage, which in important for the foundation, is set up correctly.  You set an expectation for the builder of your involvement

Frame:

This inspection will ensure that the frame of the house is sound.  It will also make sure that the HVAC, water lines, electrical wirings, structure are within safety building guidelines.  With the rate at which builders are building new home this is a very important step

Final inspection:

This final inspection will make sure that the paint, tiling, window fittings, appliances, water flow and drainage, and doors are properly functional.   The inspector will also ensure the entire construction project has been cleaned.

 

  1. Know your rights if something goes wrong

If you have done all you can to make sure this project will go off without a hitch, there are a number of ways you can make a complaint against a faulty builder whose work was not satisfactory.

If your builder is a member of the National Association of House Builders, you will be able to file this complaint with the local branches. Different States will all have different ways of handling these complaints and you will have to contact them to get the process started.