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There are so many things to consider when buying a new construction home. It's much less planning than building yourself, but it still requires research to get your home exactly how you want. Let's have a look at some of the most important things to consider when you're buying new construction.
There are many steps in the process, and you can go about them differently, depending on your situation. Some home-building companies will take care of everything from your finances to your build, but if you're choosing to build on your own, then you need to make sure you figure out as much as possible ahead of time.
Get some help
The first step you might consider is finding a real estate agent to help you navigate the land-buying process. A local agent will likely know the areas you're thinking very well, and they'll be able to help you find the best location to start your build. Plus, they can be your advocate when communicating with your home builders. While it might not seem necessary, hiring a real estate agent will help you in many ways.
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Another person you should consider hiring early is a licensed general contractor. A contractor will help you with the entire build, and it's a good idea to get their input on your decisions as soon as possible. They are there to coordinate and monitor the progress of your home build, and they can often recommend professionals for specific jobs to make your home build as simple and flawless as possible. Moreover, they will be able to advise you on essential equipment required for the construction, such as JCB backhoe parts, which are crucial in many construction processes.
A general contractor with a license will likely have years of home-building experience in the area, and they will be able to work with your budget and want to create a home you love. There are ways you can become your contractor, but it requires a very long list of steps and considerations. Unless you have home building experience, hiring a contractor will give you peace of mind, along with expert advice.
Sort out your finances
Getting a loan from your bank to buy an existing home and getting one to build your own home are two different things, and a mortgage broker can help you sort it out with your bank. They can usually find you the best interest rate and explain to you what terms are necessary for the loan to happen. Construction loans are segmented, and the funds are released based on the building process, so ask a professional to explain your loan to you thoroughly.
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Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
When you're getting a loan for construction, make sure you check out other options over your home bank. Some banks may offer you a better rate for switching over to them, and a one or two-percent difference won't seem like much, but it could save you tons of money in the long run. Once your finances are sorted out, you can prepare a budget for land purchase and home construction.
Look at your location
Once you've figured out all the paperwork and finances, you can start looking around for a plot of land within your budget. Make sure to scout out the area in person before committing and check out what will need to be done to the land itself to build on it. If you've hired a contractor by this point, it's a great idea to let them tour your land options and ask them to give you their opinion.
You should prepare the land yourself if working in an undeveloped area. This requires clearing out any plants, leveling the ground professionally, and getting the land surveyed to figure out the exact boundaries of your property. Once you've decided to start building, you'll need to get access to temporary utilities like water and power so you can begin the building process.
No matter where you've chosen to build, another consideration should be the neighborhood. Check how close or far you are from schools, shopping, and other necessities. You can also usually look online for the neighborhood's rating, crime statistics, and lots of additional information that might change your mind about the area you've chosen, so make sure you are comfortable with the area before you buy.
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Plan your layout
Somewhere in the process, you need to make yourself a building plan, and it's best to hire a professional. It will cost around $500 - $2000, depending on who you hire and the size of the home. An architect will draw out your basic plans and needs, while a draft person will draw up the technical construction plans.
Being able to see the plan of your home before you start building is very important, and many builders will begin the process once all the plans have been finalized and approved by any necessary zoning boards.
If you're building in a subdivision, there might be a limited number of plans. Make sure you look at each one clearly and tour whatever model homes are provided so you can get a good feel of what the layouts are like. The company will let you know what they can change and their limitations, so feel free to ask if you see something you'd like done differently.
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Plan the details
Once you've figured out all of the major stuff, it's time to start picking out all the minor details so you can stay within your budget. If you want something built from a specific wood or you'd prefer a particular stone for your countertops, then you need to start budgeting for it before the builders start buying supplies.
You can be as specific or general as you want regarding the details of your house, but you should communicate whatever you'd like to your builder. Telling them you want a "black tiled backsplash" instead of being specific on tile brand, model number, and color might leave you with something you don't even enjoy instead of giving you exactly what you expect.
A general contractor will commonly purchase your materials at the "builders grade" level, meaning they are the basic level of quality. If you want something different or higher quality, then make sure to communicate it as soon as possible. Lower-grade materials may lead to costly repairs in the long run, so a clear line of communication for the budget and incurring costs is essential for both sides.
If you're building a stock home within a subdivision, then you'll need to choose the options your home has before the builders can start on the home. Be aware that most model show homes are fully loaded with all the bells and whistles, so ask what's considered stock and what's considered extra when you're doing your initial tour. Make a list as you go of what you see that you want to be included when you're selecting the options for yourself.
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Make a list and check it twice.
When you finally have all the details in place, there's still one step you should do before your builders even set foot on your lot. Ensure all your paperwork and zoning permits have been appropriately signed and you have gone over your building plan if you've chosen to work with a contractor. Your contractor will likely have an agreement for you to sign that might give you an estimate of the time and cost the build will take.
This agreement can be amended as the build happens, so you should keep it handy and note any changes. Something as small as changing the type of wood used in one room can change the budget quite a bit, so keep the contract as updated as possible.
It's crucial to make sure any verbal agreements are transferred to paper. If you change something, it's a great idea to text or email your contractor to confirm it. As simple as saying, "I appreciate you changing the patio stone from black to grey" or "I just wanted to confirm that the patio stone will be changed from the black stone to the grey stone" will solidify for both of you that the design has been changed.
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Keep yourself updated
Once everything has been set into place and your home has started to be built, it's a good idea to visit the site and check up on the progress every once in a while. Not only will you enjoy seeing the process, but you'll be able to double-check that everything is going according to your plans. Mistakes happen, and it's much easier to catch something about to be placed improperly instead of fixing it a week after it's already been built.
It's also a great idea to get the structure of your home inspected before the drywall is hung. This is a great way to check for any significant structural flaws or issues with the wiring before it's hidden behind the walls. The inspector will also do a final inspection before you can move in to look at things like the roof, the foundation, and the zoning requirements.
Finish it up
Before the builder will hand over your keys, you must tie up any financial loose ends incurred during the building process. If you've gone over budget or you have outstanding payments that need to be made to contractors, then these will need to be paid in full. This part of the process is called Final Occupancy, and it might require you to use a lawyer to finish up with any paperwork and make sure your construction loan is transferred over to your mortgage.
You might also need your house to be toured by an inspector from your lender if you choose to get a loan. This is to ensure the loan's money was used properly and give your lender peace of mind.
Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
Extra things to consider
There are a few other optional things to keep in mind when you're doing new construction. Landscaping your yard is only sometimes included in your building plan, so you might hire a landscaper to work with your yard when your house has been completed.
If you want to save time and money with your general contractor, consider a few things you can do yourself. If you feel comfortable taking on a few projects yourself after the home has been completed, then it might knock off a bit of time.
Whether building the home for yourself and your family or building it to sell, keep the long term in mind. If you want to save some money on the house's bills in the future, you should make some eco-friendly investments while you build. Things like solar panels, low-energy lighting, and energy-conscious appliances will cost you more upfront but save you so much in years to come.
Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
There are so many things to consider and think about when it comes to buying a construction home. The more planning you can do before you start building, the better your final product will be. When your home is complete, you'll have a space to call your own, made with your family's wants and needs in mind.
Kenna Real Estate Group represents the region's finest properties with exceptional skill using the most innovative technologies currently available. Kenna Real Estate Group offers ultimate privacy and security, speed, and efficiency. Their years of full-time experience have given them a clear understanding of the mindset of home buyers and sellers and a thorough understanding of the regional marketplace.