How do I choose a builder?
Choosing the right builder is the most critical step in building a new home. When interviewing builders, ask if you can see other homes the company has constructed or is in the process of building. Nothing speaks louder than seeing a product for yourself. Also, a good builder will offer all of the following:
- Organization of contract and paper work
- A complete set of house specifications
- An understanding of town, state and engineering requirements
- Knowledge of banking and cash flow
- Loyal subcontractors
- A proven track record
How do I finance a house under construction?
The most cost effective way to finance your new home is to obtain a construction convertible mortgage. Once your land is purchased, a financing bank will pay out disbursements for construction throughout the building process. All banks are not the same; some are more competitive in this area than others. A competitive bank will disburse 70-90% of the assessed value of the property upon the purchase of your land.
How long will the building process take?
Time lines vary. However, the average quality home (2800 square feet) will generally be completed within five to seven months from the time the permit is received, weather permitting. Remember, the additions of hard wood, several paint colors, custom molding and other details will add to the length of time to build.
What are my responsibilities?
At Bill Smith Building Company, Inc., suspense dates are given to each buyer in order to make sure that the flow of construction is not interrupted. This important checklist details the decisions by date as they apply to the construction process. By knowing well in advance when critical decisions must be made by, the buyer remains focused on decisions as they are needed and breaks them down over a period of time, minimizing disruptions in the building process.
We also provide all change orders to the buyer with a breakdown of additional costs for sign-off prior to commencement of work. That way, no customer is surprised by costly add-ons at the final closing of their home.
Finally, timely payments are critical. Financing banks will have a draw schedule that buyers receive when closing on the loan. This schedule makes available a percentage of the total loan for payment of completed items. Nearly all draw schedules from competitive banks are acceptable.
Do any warrantees apply after I move in?
A one-year warrantee applies to all new homes. Certain electrical, heating and plumbing items have longer warrantees.
How do I avoid common mistakes?
If you’ve never had a new home built for you before, you’re bound to face a learning curve. The right builder however, will help minimize mistakes and guide you in your decision making every step of the way. When you’re building, something as simple as choosing paint colors can seem overwhelming.