What You Need to Know Before Taking Steps to Build a Home
According to the United States Census Bureau, more than 50,000 homes are built and privately owned [can we confirm this? Doesn’t seem to make sense]. If you’re interested in building a custom home, it's very important to make the proper preparations to ensure your project's success.
Where do you begin and what are the steps to building a home? How should you handle your budget and what are some effective ways to expedite your home building project? These are all essential questions that will be answered below as you learn how to plan your next project.
Step #1: Create Your Plan
This is arguably one of the most important steps before your custom home's construction. Your project plan must list all of the features and amenities you want to build.
Do you want to add a swimming pool in the backyard? Are you looking to build a two-story home or add a fireplace? Ideally, you should create an in-depth list that lists every important characteristic of your project.
There are several helpful tools online that will help you design a perfect home. When you're finished with your plan, you can hire a designer to create 2D and 3D blueprints of your future home.
Step #2: Develop a Suitable Budget
The next step you should take before building your home is setting aside a suitable budget for your project. The rule of thumb here is to budget more than you expect.
It's normal for a construction project to experience delays and cost overruns. There is also the chance that you'll make an addition before your project is completed.
Setting aside more funds than you anticipate is a great way to achieve the peace of mind of knowing that you can fully afford your new home despite any sudden challenges or surprises.
Step #3: Hire the Right Builder
The builder you choose will undoubtedly play a vital role in how your project turns out. You'll be working with your builder for many months and maybe even years, so it's best to choose a company that you have a strong connection with.
When searching for a qualified custom home builder, you should look for:
Credentials — Look for a home builder that's licensed, insured, and an active member of the National Association of Home Builders
References — Before you sign anything, collect references from past customers and verify them
Past Work — Take a great look at a builder's portfolio to gauge the quality of their service
Personality — Since you'll be working with your builder for a long time, schedule an interview with them to see if their personality and professionalism are what you're looking for
Price — Lastly, ask for details regarding the price and deliverables of your project
Step #4: Read Your Agreement
Once you decide on hiring the builder for your project, carefully read your contract before deciding to move forward. Make sure that your contract lists the costs of your projects, any milestones, and the intervals that each deliverable will be completed. For extra measure, hire an experienced lawyer to review the contract to make sure you're getting a fair deal.
Step #5: Know Your Rights
Many people believe that when they're developing a custom home, they're on their own. But there are some ways that you can save on your custom home.
If you're building your first home, you may be eligible for a first-time homebuyer's program. Also, if you're building an eco-friendly home, you may qualify for certain government grants. These deals can help reduce the overall price of your home.
To receive more information about these types of programs, speak to your mortgage lender.
Step #6: Secure Financing for Your Home
There's a great chance that you'll need to apply for financing if you plan on building your own home. If so, you must realize that financing for a custom home is different than a standard mortgage loan.
A construction loan is a short-term loan that covers only the costs of custom home building. Since these types of loans are risky, your lender may require a 20% deposit. When meeting with a prospective lender, make sure you bring your blueprint, as this will determine the total value of your home and your loan amount.
Step #7: Always Communicate
After securing financing for your custom home, you'll need to communicate regularly with your builder to lay the framework of your project.
This can take several weeks before your project even begins. Ultimately, you're entitled to have your home built exactly the way you want it. Therefore, make sure your builder is clear about the expectations you have. Also, feel free to check in with them periodically and ask plenty of questions about their progress.
Step #8: Choose Your Location
The final step in planning your new home is to select your lot or location. This is where all of the construction will take place. Of course, you'll need to take the necessary steps in inspecting any land before construction.
Also, you'll need to meet with your mortgage lender in some cases to determine if building a new home on the lot is feasible. When planning a luxury home, you'll ideally need to reserve a lot of space.
Naturally, it'll take some scouting to find the right lot for your new home. Therefore, don't be discouraged if this is the longest phase of the home building process.
Begin the Steps to Building a Home You Want
As you can see, there are several important steps to building a home. In fact, it can take several weeks to finalize all of the essential details before a builder starts the construction process.
Are you searching for the right builder to construct the home of your dreams? At Brista Homes, we have built a strong reputation as one of Longboat Key’s premier custom home builders.
To find out more about how we can help you, contact us today to speak to a member of our team.