New Construction
Let's Build Your Home
Custom Vs. Semi-Custom
Custom Vs. Semi-Custom
Custom Vs. Semi-Custom
Custom Vs. Semi-Custom
Custom Vs. Semi-Custom
Investors
Custom Vs. Semi-Custom
Cash Vs. Financing
Cash Vs. Financing
Custom Vs. Semi-Custom
Cash Vs. Financing
Let's Build Your Home
If you are considering building your next home, this is a specialty of mine. As with the purchase of a resale home, the most important, first step is a consultation with me to determine your wants, needs and budget so I can best guide you through the process.
During our conversation, I will need to ascertain whether you are paying cash or need financing. Additionally, we need to discuss whether we’ll be building on your lot or if you need me to help you secure the land to build your home. Understanding the financial constraints and lot limitations will guide our next discussion regarding builders and floor plans.
I partner with licensed, insured builders that have been thoroughly vetted. I have worked with most of our builders multiple times and have confidence in the quality of their homes. Occasionally I find new contractors, generally through referrals, that want to work with me and my clients. When this happens, they are thoroughly researched, including their license standing, past project completion, confirm their financial stability, references from other agents and clients, visits to existing projects, etc.
Part of my service is matching you with the best builder for you to partner with, based on numerous items, such as their completion timeline, budget, semi-custom versus custom home, communication styles, etc. I’m not tied to any one builder. Knowing your situation, and how it will fit with the appropriate builder’s portfolio, I can take the guesswork out of a stressful situation, as most clients don’t know where to begin.
Once we have these initial decisions outlined, we can move to floor plan selection or creation depending on whether you are building a semi-custom home, or designing a full custom, luxurious home. This step will be further discussed in one of the two sections below.
Regardless of which kind of home you are building, as your project manager, I will help you select your exterior color and material options. If you are building in an HOA, I will package the presentation together, along with the HOA’s required paperwork, to submit the documents on your behalf to obtain HOA approval. In certain situations, with our semi-custom homes, I will also walk you through your interior color options.
If you require a construction loan, I will work with your lender throughout this process and have more details in the cash versus financing section below.
I truly love this aspect of my job. I get to incorporate my artistic side with my years of experience in real estate and development. Every time I sit down with clients and help design their floor plan, locate the best position for your home to be built on your lot, and select a color palette to express your personality, it brings me joy. The exhilaration we share in this creation is sheer joy for me.
Custom Vs Semi-Custom
Whether you are looking for a more moderately priced residence or seeking a luxurious custom home, I have builders ready to help. The difference really comes down to budget.
If you are looking for a more affordable option, several builders have established floor plans wherein you can still select your color schemes and finishes, maybe change out a shower/tub combo for a walk-in shower, etc., hence semi-custom. In this category, the builder will have standard, included finishes, generally with interior color scheme categories to choose from. Most of our builders allow for some flexibility, but understand the standard pricing is going to increase if you start over-extending the finishes.
If you are ready to build the home of your dreams, custom is the way to go. You have the option of drawing plans completely from scratch, but due to my extensive library of floor plans from homes previously built, most clients find it more comfortable to tweak a plan already utilized. I listen to your wants and needs and then pull out a few plans for you to take a look at. From there, we redline the drawings to move walls, add bathrooms, enlarge bedrooms or living areas, add extra doors or windows, increase cabinetry layouts, change deck size, etc. Once we have our initial draft, I communicate with the Draftsman to draw out your new plans. Often, we go back and forth a time or two with some revisions until we have the perfect plan.
Let’s discuss your goals so I can help make your dreams a reality.
Cash Vs. Financing
Let’s start with financing. There are construction loans available. The most common construction loan utilized in our area involves the client paying cash for, and closing on, the lot first. Then, the standard down payment, especially for 2nd homes, is generally 20%. The value of the land is applied towards that 20%, and the client then only comes up with the difference to deposit with title before closing. There are both one-time and two-time close products available, wherein the client generally pays interest-only payments during the construction phase.
There are lot/home packages available, as well as lower down-payment options for primary residences. Additionally, I also have a contact where private money loans are used during the construction period with pre-approval for a standard loan upon completion of construction. Please keep in mind that loan programs and interest rates change regularly, and I am not a lender. I do, however, have lenders that I can refer you to that can review your unique needs and pre-qualify you for the loan product that works best for you.
When it comes to cash, the first step, if you don’t already own the land, is to purchase the lot. Simultaneously, we can be working on the development of your plans and obtaining HOA approval. Once we have your budget and contract approved, you’ll deposit 10% of the build cost with the builder directly. Generally, you’ll have your second draw due at/after foundation, and the next with framing. Then there will be a few more throughout construction, and the final one at the end to get your C of O (Certificate of Occupancy). The average build time is 9 months to 14 months, so this gives you an opportunity to spread out expenses or cash in on other investments later down the road when required.
One other thing to note in this “cash vs. financing” section, are two other costs you are likely to incur when using our new construction services. First, once you are committed to this build program, you will pay the builder a $10,000 non-refundable pre-build deposit. This is applied towards the costs of drafting the construction plans specific to your home as well as any topographical surveys or engineering expenses for your project. If for any reason you do not move forward with your project, you will own these plans. The “deposit” is really more of a fee to cover the builder’s expenses as he’ll be hiring other professionals to do work on your behalf, and you generally will not be under contract to build with the contractor at this point.
Additionally, if you are building in an HOA, most HOA’s have Architectural Review Fees and Construction Deposits that you will have to pay. These fees go directly to the HOA with your submission and have no bearing on the build itself. We will discuss these fees, based on your own situation, during the initial consultation, or once we have selected your lot, so you will be prepared for the fees involved.
Understanding the financing and cash flow of new construction may be new to you. I am happy to help guide you through this process and answer any questions you may have, as well as refer you to lending partners for more exact specifications on your own situation. Let me know how I can be of service.
