Four Great Tips To Consider When Building Your New HomeJanuary 28th, 2016 | Posted in Custom Home, Design Tips, Home Building
You have decided you want to build a new home, but what do you do now? Where do you start? This is a common question. There are so many things to consider, and the process can seem overwhelming. Here’s a few tips that will help you navigate through many of the pitfalls.
1. The Best Land is Typically Not Listed with Real Estate Agents
Builders and developers typically only list land with realtors if they are having difficulty selling them. The premiere lots are usually sold direct. Your best resource to find the most comprehensive list of what land is available is a reputable local builder. For example, my company has a binder that is 5 inches thick full of information on lots and land parcels available throughout Lake and Geauga counties and only a small fraction of those are listed.
2. Work with a Bank Loan Officer that is Familiar with New Construction Lending
In today’s market, there are a limited number of banks and mortgage companies offering construction loans. Even with banks offering construction loans, it is critical to be working with a loan officer who specializes in new construction lending. The process for a construction loan is different than a typical mortgage and a knowledgeable loan officer can make the process effortless. Your best resource for finding a good loan officer is the builder. They have worked with most banks and loan officers in the area and can refer you to the one with the best rates, lowest closing costs and most experience.
3. Consider Design-Build
Who better to help you design the home than the company that will be building it. Working with the builder during the design phase is a smart move. Many builders offer design-build services where they do the custom design as well as build the home. Part of the design-build process is establishing a budget and then making sure the home design can be built for the budget amount.
Even if you work with an independent architect, having the builder involved in the design phase is the best way to ensure that the home design can be built within your budget. Many times potential clients bring us plans they have had drawn for us to bid only to find out that the house they designed cannot be build for their budget. Then they have to go back to the architect and pay for a re-design to make the home more affordable.
4. Work with a Professional
When building a new home, the best individual to guide you through the process is a builder’s salesperson. A good builder’s sales staff should be true new construction experts who can help you find the land, get financed, design the house plan, and help get the best pricing on your new home. As an added bonus, many also have a REALTOR license and can help you sell your current home, coordinate your move and negotiate a rental if necessary. Many even offer discounted commissions on the sale of your existing home.