Years ago, while living in Vermont, I met a woman who had built her own house from the ground up - literally "by herself." While sitting in her living room, she described to me in great detail how she had always wanted to build her own home. She told me how she had drawn up her plans, cleared the site, dragged bags of cement up the hill, and how she included her children in the whole process. She was very proud of her accomplishment and the finished product was truly a labor of love.
Most people never experience this total immersion approach of home building - being both general contractor and nail carrier. While we may harbor a pioneer spirit, most of us wisely leave the building process to professional builders. Just what goes into the decision to build? How do you find a builder? What are the downfalls of building?
The closest I have ever come to building was a major remodeling project that added another 700 sq.ft. of living space to our home. We made just about every conceivable mistake during this process, but learned a great deal along the way. Somewhere between washing dishes in the bathtub and realizing that workers really do arrive at the crack of dawn, we discovered the joys of transforming a usable space into one that truly fit our life-style.
One of the great things about publishing Picket Fence Preview magazine was that it gave me an opportunity to talk to many people throughout the Pioneer Valley who were buying, selling, remodeling and building new homes. In fact, several of our advertisers during 2002 were selling their existing homes, ready to move into homes they had built. I learned that there is a fair amount of stress involved in building - countless decisions to be made, delays due to unforeseen circumstances, cost overruns, and other stomach churning problems that can, and do, crop up along the way. Still interested in building? Read on.
Create A “Wish List”
Whether you are buying an existing home, or building a new home, develop a list of criteria to help you focus on what is important to you. Try setting up columns of “must haves” vs. “like to haves” and start collecting ideas from magazines and other sources. If you own a home presently, try focusing on what you have now compared to what you would like to gain by building a new home. Revise your list as you progress. Items that may be indispensable on the outset may be dismissed later due to costs or feasibility. Visit open houses (yes, we all do it!), and talk to friends who may have gone through the process. If you haven’t established a budget, start tracking your spending habits now.
Selecting Your Plans
Depending on the builder you choose and style of home you want to build, the next major decision in the building process involves selecting house plans. Plans may be designed as "one of a kind" by an architect or designer, purchased "ready made", available through your builder, or modified from other plans to meet your needs.
Find a Lender
Determining financing options for your dream home is an important early step in the building process. Kimberly Thompson, loan officer from GMAC Mortgage remarks, “We get many calls from people who have their eye on a piece of land and really don’t know where to go from there. They may not be familiar with how construction loans work and are unsure what kind of a loan they need at that stage of the game.” Unfortunately, there is no central source that lists what lenders participate in new construction programs. Local community lenders may offer these specialty loans, some do not. “New construction loans require essentially the same documentation as regular loans, but are definitely more complicated and require the expertise of the lender, ” says Thompson. GMAC, for example, has two loan officers who are specially credentialed in this area and work with many different construction loans. Ms. Thompson also remarked that many first time home buyers who chose to build rather than buy, ultimately regretted their decision, mostly having to do with the lack of prior knowledge about what they wanted without first having lived somewhere else.
Choose a Builder
Beyond finding a builder with the expertise to meet your needs, bear in mind that you will facing many situations together in the next several months - often times requiring the ability to work together to solve a difficult problem. Someone who is difficult to work with initially probably won't become warm and fuzzy if a major problem crops up. Do you find the perfect lot, then the builder, or find the builder who has the perfect lot? That is the question. I admit, I didn’t really know the difference between a custom builder, spec builder, production builder or just a regular general contractor/builder before researching this article. According to the National Association of Home Builders (NAHB), custom builders generally build one of a kind homes on land you or they own and tend to build a low volume of homes per year. Production builders tend to build in larger volume on land they own. Builders may also choose to build on spec and sell the homes as completed. Many builders not only build new homes, but also remodel homes as well. How do you know what builder to choose for your project? Assuming that you have already decided the area in which to build, here are a few tips to help you find a builder:
• Do your legwork - Many builders do not advertise their services widely, working largely by referral. Talk to your friends, family and co-workers who have built and find out more about their experiences. If you see a house or neighborhood that catches your eye, find out who the builder is. Find out who the local builders are in your area by searching on-line. Some builders maintain their own web sites, complete with photo galleries. Area home shows can be a great way to start compiling valuable information on the latest in home construction and showcase builders in your area.
• Narrow the list - Try to locate a builder whose style is complimentary to your needs. Mike Sendleski, of The Western Massachusetts Home Builders Association urges consumers to take advantage of the many services this nonprofit organization provides. He recommends that potential new home buyers request a copy of their Consumer Guide and to try their builder referral service. Call 800-523-8320 for more info. (www.hbawm.com). Once you have a builder or builders in mind, you may want to log onto the Commonwealth of Massachusetts website. Here, you may check a contractor’s license, and look up information on any complaints that may have been filed with the Attorney General’s office. Be sure to check out the BBB to see if complaints have been lodged. Note: Check with the builder for an explanation before writing him/her off. There are generally two sides to every issue and it may be difficult to tell whether any fault of the builder is at the root of the complaint.
• Visit homes - Attend builder open houses, or ask to visit homes currently under construction to inspect workmanship.
• Ask questions - Compare home warranty protection, services provided after the sale, and stability of the company.
Protect Your Legal Interests
Once you have chosen your builder it is time to put everything in writing. Most builders use a “standard contract” which understandably is designed to protect the builder. Scott M. Hibbert, Esq. of Feeding Hills, who works with home sellers and buyers throughout the area, recommends that consumers have an attorney review any builder contract. “If you want brass colored Delta faucets, you should specifically state that in the contract, down to the model number if necessary. Larger items like carpeting should specify a certain quality.” Atty. Hibbert also cautions his clients that he is there to protect their legal interest, but cannot negotiate a price. “The buyer must be responsible to make sure that the number of windows specified, for example, is correct.” Beyond reviewing the contract, your attorney will work with your lender to handle any distributions to your builder and the final closing. You Did It!
Somewhere during the process you might have groaned, "What were we thinking of?" Now that you are sitting in your new living room, admiring your custom kitchen and gleaming countertops, it's all very clear. Would you do it again? Well....time will tell.
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