Getting Started

What Can You Afford?

The first step in building a new home is to set a realistic budget. Select a bank or mortgage company that has experience with construction financing and then meet with them to see what you can afford. If you have a house to sell, schedule a meeting with a realtor to determine a sales strategy and set a realistic selling price.

Design Your Dream Home

Have a family meeting and ask everyone what their ideal house would include. Walk through open houses to gather ideas. Review house plans on-line to find plans that you think will work for you and your family. Once you have a wish list, meet with an architect to draw up a preliminary design that incorporates the features you want and that stays within your budget.

Interview Builders

When interviewing builders, always be sure to check references including both recent customers and professional references. Also, make sure the builder has the appropriate licenses and check that no complaints have been filed with consumer protection groups. Meet the builders at one of your potential lots or at one of the builder’s job sites. Ask lots of questions and make sure this is someone you can work closely with over the next several months to build your dream house.

Find a Lot

At first glance, buying a lot may appear to be much like buying a house – location – location – location. But there are many other factors to consider. Consulting with an experienced builder or with a realtor knowledgeable about construction can help you answer questions like: Will the lot work with our house plans? Are public utilities available or will we need private well and septic? What is the building envelope and will our house fit inside that area? Are there covenants and restrictions? How will we access the lot? An experienced builder or realtor can also advise you on the language of the contract and make sure your interests are protected. For example, you can specify in the contract that the building permit must be secured prior to settlement.

Compare Builder Quotes

When you compare the quotes from each builder, make sure you have a specification sheet that describes all aspects of the job. Spec sheets should cover everything from the foundation, roofing, and insulation to the windows, wiring and driveway. With a detailed spec sheet you can effectively compare one quote to another. A builder’s quote should also include allowances for items commonly upgraded such as carpet, appliances, kitchen cabinets and lighting fixtures.

Finalize your Financing and Sign a Contract

Make sure you are clear about the details of the financing and contract before signing on the dotted line. Ask lots of questions before you make a final decision.