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If you've never bought a home before I recommend a RE agent before you even start looking.
Second, are you looking to build with a personal builder or with a builder who is building multiple homes in an area? What happens with each is quite different.
Third, do you have a real understanding of your needs? Building your first home rather than buying one already built is a *very* taxing process. There are hundreds of decisions to be made and if you don't have a clear understanding of your needs then you will likely make costly mistakes. Remember, once the plans are approved any changes you make will be an overage on your budget. Lots of people go over budget because of changes.
Last, how much $$ do you have saved up? How much will you be borrowing? Have you looked into the tax consequences of new builds? Are HOAs and/or CDDs a factor where you want to live?
If you've never bought a home before I recommend a RE agent before you even start looking.
Second, are you looking to build with a personal builder or with a builder who is building multiple homes in an area? What happens with each is quite different.
Third, do you have a real understanding of your needs? Building your first home rather than buying one already built is a *very* taxing process. There are hundreds of decisions to be made and if you don't have a clear understanding of your needs then you will likely make costly mistakes. Remember, once the plans are approved any changes you make will be an overage on your budget. Lots of people go over budget because of changes.
Last, how much $$ do you have saved up? How much will you be borrowing? Have you looked into the tax consequences of new builds? Are HOAs and/or CDDs a factor where you want to live?
Excellent points, especially the decision making process. You need to be able to visualize the finished product from the plans and specs before the project even starts, and understand the timeline and building process.
One thing I'd add is to hire an independent inspector from day one. The builder is not going to have your best interests in mind, no matter how much they sweet talk you.
If you're expecting to move in in June or July, you need to get the process started ASAP. Depending on where you're building things can slow down dramatically in winter. Building materials seem to be in short supply at the moment so that could also affect the schedule and cost.
I would first find a good agent in your area. Do your due diligence here.
I agree with the previous poster in that building a house is a major undertaking. I've done it myself, done it as a subcontractor under a general contractor, and with builders.
The key is to READ and understand all of the construction documents. Know the contract inside and out. Visit the job site every day and inspect the work as it is done. If something is not right, call it out and have it fixed.
The last house I built using a builder ended with the builder telling me I was "the customer from Hell". I remarked to him that I didn't understand why, as nothing I requested or got resolved to my liking was not spelled out in the contract. I merely held him to the contract, nothing more.
This highlights a problem with spec homes or homes built by big national or regional builders. They make money on volume, and the subcontractors are often the guy with the cheapest bid for the work that week. This means that construction documents are rarely complied with and corners are cut.
For example, one house I built it was called out that the drywall be screwed and not nailed. The drywall crew showed up one morning and started hanging drywall - with nails. I found the job super and pointed out the documents where it said drywall was to be screwed. Five minutes later the crew had gone out to their trucks, swapped their gear, and were now screwing the drywall rather than nailing it. Had I not been there it would have been nailed.
If you're not actively engaged with the construction process, you'll be disappointed and have conflicts. The exception to this would be if you'r using a custom or low volume builder who has dedicated subcontractors.
If you've never bought a home before I recommend a RE agent before you even start looking.
Second, are you looking to build with a personal builder or with a builder who is building multiple homes in an area? What happens with each is quite different.
Third, do you have a real understanding of your needs? Building your first home rather than buying one already built is a *very* taxing process. There are hundreds of decisions to be made and if you don't have a clear understanding of your needs then you will likely make costly mistakes. Remember, once the plans are approved any changes you make will be an overage on your budget. Lots of people go over budget because of changes.
Last, how much $$ do you have saved up? How much will you be borrowing? Have you looked into the tax consequences of new builds? Are HOAs and/or CDDs a factor where you want to live?
I never owned a home and I will take your suggestion with finding an agent. I live in Colorado and there are several builders selling pre-built to newly built homes. I'm interested in having my home custom where I can just pick out whatever I want.
I haven't thought about taxes or HOAs. I will look further into that.
Quote:
Originally Posted by JonahWicky
One thing I'd add is to hire an independent inspector from day one. The builder is not going to have your best interests in mind, no matter how much they sweet talk you.
If you're expecting to move in in June or July, you need to get the process started ASAP. Depending on where you're building things can slow down dramatically in winter. Building materials seem to be in short supply at the moment so that could also affect the schedule and cost.
Thanks for the independent inspector tip!
Quote:
Originally Posted by MortonR
I would first find a good agent in your area. Do your due diligence here.
I agree with the previous poster in that building a house is a major undertaking. I've done it myself, done it as a subcontractor under a general contractor, and with builders.
The key is to READ and understand all of the construction documents. Know the contract inside and out. Visit the job site every day and inspect the work as it is done. If something is not right, call it out and have it fixed.
The last house I built using a builder ended with the builder telling me I was "the customer from Hell". I remarked to him that I didn't understand why, as nothing I requested or got resolved to my liking was not spelled out in the contract. I merely held him to the contract, nothing more.
This highlights a problem with spec homes or homes built by big national or regional builders. They make money on volume, and the subcontractors are often the guy with the cheapest bid for the work that week. This means that construction documents are rarely complied with and corners are cut.
For example, one house I built it was called out that the drywall be screwed and not nailed. The drywall crew showed up one morning and started hanging drywall - with nails. I found the job super and pointed out the documents where it said drywall was to be screwed. Five minutes later the crew had gone out to their trucks, swapped their gear, and were now screwing the drywall rather than nailing it. Had I not been there it would have been nailed.
If you're not actively engaged with the construction process, you'll be disappointed and have conflicts. The exception to this would be if you'r using a custom or low volume builder who has dedicated subcontractors.
One other thing to consider when building a new home:
Making a substantial change or addition to the project may look expensive up front, but consider the amortized cost over the life of the mortgage. In other words, to make a $20,000 change only works out to a few bucks in every mortgage payment. It's also often something that you can't do after the fact without a major expense.
For example, when we built a spec home with a caged pool about 20 years ago, we had the builder add another three feet to the deck area on the far side of the pool. The "stock" arrangement only had a strip of deck about 18" wide. That change cost us about $4k, but it made that are far more useable and added substantially to the deck space in the pool area. The cost to do this after the fact would have easily been double, if not more.
Factor in extra money for landscaping which can be quite expensive. I have bought new and bought used, and you get a lot more for your money buying used.
Factor in extra money for landscaping which can be quite expensive. I have bought new and bought used, and you get a lot more for your money buying used.
This is true, but the best part about building new is that you get things the way you want them and they're ready when you move in.
It's a tradeoff - I've done it both ways and each has its advantages and disadvantages. It's all what the buyer is looking for.
I never owned a home and I will take your suggestion with finding an agent. I live in Colorado and there are several builders selling pre-built to newly built homes. I'm interested in having my home custom where I can just pick out whatever I want.
I haven't thought about taxes or HOAs. I will look further into that.
Thanks for the independent inspector tip!
Thank you for your insight.
OP~
Since you don't know, what you don't know, now is the time to get educated on all the things that can happen in a Real Estate transaction. Including, the fine art of negotiations.
You're time frame is 9 months away, this is 1 factor that's on your side.
Are we to understand you want to build a custom home? If so, you'll need property and an architect, to start.
My last two home purchases were new builds in small (less then 200) homes developments. I could choose from 6 or so models and a ton of upgrades. Some advice:
1. You do not need a buyers agent but if this is your first rodeo, than one is recommended.
2. Buy in during the last phase so all promised amenities are in place and they will not be building "cheaper" homes in later phases.
3. Hire a home inspector to do walk throughs with you. Not a formal inspection but walk throughs and pay for each walk through. If not an inspector, then someone in the building trades. Many real estate agents do not know the difference between a roofing and a flooring nail so do not depend on them.
4. Become friendly with the onsite construction manager. Make him a friend. He will appreciates "gifts".
5. If an HOA, get a copy of the Covenants (Deed Restrictions), Bylaws, and Rules and Regulations. Become familiar with them and decide if you can live under them. If not, move on down the road.
6. Get an HOA Financial Statement. Be sure the budget can cover everything plus Reserve money. You do not want to get hit with a dues increase nor a Special Assessment later on.
7. Builders have very little wiggle room on the base price but they can and will wheel and deal on options. Get the options you want from the get go. Do not say well I can do that later. You will not.
8 If new construction, understand it happens in spurts. You may go weeks without seeing progress then bang, things are done.
I prefer new constructions as I want things the way I want them, when I want them.
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