To Build or not to Build - That is the question

In a market as crazy as the one here in the Mini-Cassia area, this is a question that I'm sure is on a lot of people's minds. Building vs Buying? Well saddle up y'all, because I'm about to break down the building process in a nutshell, as well as provide a super simple to follow guide for you to be able to be informed on the building process from start to finish.

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First step is to decide if building is right for you - so weigh the pro's and cons.

Consider your time frame - are you in a hurry to move? If you need to move quickly, new construction probably isn't for you, unless you're able to find a spec or tract home that is already completed or close to being completed. But for a custom build job, you're looking at an easy 7-8 months on average before the home would be complete. So if you have all the time in the world, new construction could be a great fit!

Do you like DIY projects? If so, new ain't for you. But if you want something that is move in ready and everything is pristine and perfect, then by all means, build away!

Are you looking for something specific? Building is for you then! With existing homes, what you see is what you get or it's not easy or cheap to change - but with new construction if you want a space for a formal dining room, that's a wish that can be granted easy peasy.

So after thinking some of these questions over, what's the verdict? Are you a candidate for building a brand new home? If so great! Let's dive into the next step of the building process; selecting a homesite.

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Now new construction is great, but where are you going to PUT that beautiful new home?? Now up is selecting your homesite or a "lot" to build on. There's a couple of ways to do this step - the main one is if you are able to purchase a lot or piece of ground on your own. Most lot purchases need to be cash only, so figuring out your finances and what you can afford to spend on a piece of land is very important. If you don't have the cash on hand to purchase the home, some builders have the overhead to be able to purchase a lot you have your eye on. We just need to make sure we find a builder that's able to do this option if you cannot purchase the land on your own.

Some builders also have lots available in a development they are building in so you can work it as a package deal if you find a subdivision you really like with a builder you like as well.

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Now let's get to a fun, and probably one of THE most important parts of the building process: Selecting your builder! *cue fanfare*

Obviously this is a super important part of the process - finding a reputable and trustworthy builder. Interview several, and get testimonials from their past clients. Tour current build jobs they have going to see their work in person, and if you can, bring someone along that would be able to let you know if their craftmanship is up to your standards. You'll want to ask to see a copy of their contract. Your agent will have a contract that outlines a lot of the important details, but most builders have a contract as well and it's very important to have your agent or attorney read over these to check for things like escalation clauses, where if the costs of materials increases during your build the builder could pass that increase on to you.

Make sure to ask them their timeline for completion; some builders can finish a build job in 6-7 months, while some might be a year or longer out on their calendars for new jobs. Remember that builders are only human though, not superhuman, and if you're building during a time of year where the weather can cause delays, there are certain things out of the builders control in regards to the time frame. Think of the closing date as the bullseye on a dart board; that's what they're aiming for, but not everyone hits the bullseye on their first throw.

Communication is key so finding a builder that either is on top of communicating with your agent or has someone within their company that is specifically in charge of staying in touch will make the entire process feel seamless and more stress free. If you or your agent have to constantly ask your builder for updates and have delayed responses, it can make a very exciting time in your life feel very hectic and unenjoyable, and we don't want that. Make sure to ask those giving testimonials how the communication process was for them.

Also, finding out if a builder has a preferred lender is very important, sometimes you'll want your own lender but if a builder has a preferred lender that can offer certain benefits, like reduced closing costs, it can be a win-win for you and the builder. Just make sure to find out if the preferred lender is just a referral partner with the builder or if they are owned by the builders company. If they are owned by the same company, make sure to have your attorney review the builders contract.

*Keep in mind that even the best of the best builders aren't perfect and there will be certain things throughout the process that might need to be addressed :: That's why having an agent and staying involved in the process are so important to catching any mistakes.*

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Now let's talk numbers. While selecting a great builder is top of the importance list, having your finances figured out is probably #2. If you don't already have a lender you have used prior and trust, and if you aren't going to use the builders preferred lender, ask your agent for recommendations. We know the best ones because we work side by side with them constantly. Ask about how the loan process for new construction will work, whether you're doing a loan that is similar to buying a pre-existing home or a construction loan, your lender can explain the process and all the different options available to you.

A few questions to keep in mind to ask your lender:

What interest rate can you offer?

Does the rate come with points?

Is it fixed or adjustable?

When can you lock my rate?

What fees can I expect from you?

What type of loan is right for me?

Do I qualify for any down payment

assistance programs?

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Okay, so maybe the last few sections have been a little... well boring. Contracts, loans, I mean, despite being important, where's the fun in them?? I'm glad you made it this far though because here comes the fun part.... the selection process!! Taking those Pinterest boards you've been creating and bringing them to life. And if you live under a rock and don't have a "Dream Home" board, or a Pinterest for that matter, take my advice and make one. Having a vision in mind with images to help convey that vision to a builder and their designer helps make life SO much easier.

Here's an incomplete list of the decisions you'll make on a custom build:

· Floor plan and overall home design

· Exterior finish and color

· Roof type and color

· Window styles and colors

· Interior and exterior door styles and colors

· Door and window hardware

· Landscaping plan

· Interior wall finish, textures, and colors

· Baseboards and crown molding

· Kitchen, bathroom, and laundry room cabinetry

materials and finishes

· Cabinetry design

· Backsplash design and material

· Countertops

· Shower and bathtub styles

· Sinks

· Sink and bath/shower plumbing fixtures

· Bathroom mirrors

· Toilets

· Flooring for all rooms, hallways, and garage

· Appliances

· Garage door

· Closet design

· Shelving material and design

· Fireplace materials and design

· Porch or patio design and materials

· Driveway design and layout

· Pool, outdoor kitchen, or other outside amenities

In a planned development, you usually have option levels to choose from, the scope of which depends upon the price point of the home or development. You may be able to up or downgrade any of these items. You will need to discuss with your builder how changes to their options packages will affect your sales price.

Various options are usually offered for these items:

· Exterior finish colors

· Interior color scheme

· Flooring choices

· Cabinetry

· Door and window hardware

· Countertops

· Light fixtures

· Plumbing fixtures

· Tile

· Interior, exterior, and garage doors

· Appliances

· Landscaping

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And that's building in a nutshell!! Congrats for making it through to the end. If you have any questions on topics relating to building a home that I didn't already cover, check out the full New Construction Guide linked below to see if the answer to your question lies within it's very informative pages. And if the answer to your question still eludes you, ring me up! I can help with any and everything relating to building, and having an agent to represent you during the build process is extremely beneficial. I'd love to be your advocate through the process of creating your dream home. 208-260-1539

New construction guide.pdf

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