Although we often just see the final product, it is imperative to learn what is involved in building a home to your specifications
When considering building a home for the first time, there is responsibility on the part of the builder and the buyer to explain and understand expectations, procedures and timelines. Making assumptions can lead to tension and hinder the enjoyment of the building process. This has more to do with understanding when decisions need to be made, when they are final, and when there is possibility of changing our minds.
Most builders have an outlined process. Some do it better than others depending on whether the majority of their business is completed inventory or build-to-order sales. The majority of what we do at Newmark Homes Houston is build-to-order and over the years, we have created a concise way to set proper expectations. But in general, you can expect similar from most builders.
1. A general expectation is that all options that affect the foundation, roofline and any structural elements including the lot have been decided and are finalized at the beginning. Elevations also affect all of the above. Permitting and developer approval depends on these so typically, these are decided by the time your initial sales agreement is drawn up. When building custom homes this process may be lengthier and may involve more than one initial agreement, with change orders added as necessary. Once finalized, remember that any desired changes may affect the start time and cost to the builder as there are fees incurred to permit and approve.
2. It is wise to obtain a pre-approval so you and the builder and comfortable entering into a mutually beneficial relationship. It is recommended that you familiarize yourself with loan parameters so you have some general ideas of upgrade budgets for decorative options.
3. The exterior design may include selecting brick, stone, stucco textures, colors, accent, stains, shingles, etc. Look around at your site and try to find something that matches the aesthetic feel of the streetscape, but different enough to add variety to your neighborhood.
4 . Interior design can be tricky. It is best to design smart. Balance personal taste with timeless choices to ensure maximum value over time. Most builders will require deposits for personal choices, usually at 50% for regular options and 100% for custom options.
5. Initial contract price plus exterior and interior upgrades will determine the final sales price of the home. Some interior options like floor plugs, pest-defense systems, mud-set showers do affect the foundation, plumbing and structures, so it is typical that interior selections and finalized prior to the start of the construction of the home.
6. Expect a meeting with construction team. You should be able to review blueprints and electrical diagrams. Builders generally do not give these out, but can be referenced in the sales or construction office. This “redline” meeting is a time to look at the design clarify anything selected.
7. Typically, a meeting is set up prior to the sheetrock stage in order to verify selections. Also, it is wise to be educated on what is behind the walls of your home. Ensure all cables, phones and any additional electrical and plumbing options are installed in the proper place. Changing their locations is much more time consuming and costly, not including the mess of redoing sheetrock and mechanicals to accommodate late adjustments.
8. Upon completion, you will have an opportunity to learn all about the home. Builders generally introduce you to the home, teach you how to properly maintain it and how it operates. If necessary, a list of items is created to be addressed prior to taking possession of the home. Although I have been in a few cases where there was no need for an items list, most lists contain cosmetic details. Although 3rd party inspectors are hired by the builder at this stage (county, city, energy star, engineer, etc), some clients prefer to hire their own. It is required that they carry liability insurance. Inspection reports can vary, and any resolution is based on building codes and manufacturer’s installation requirements.
9. You will be given a chance to review any items outstanding and accept the home as completed. Accepting the home does not relieve the builder of their responsibilities, but rather is acknowledgement that the home is built to professional standards. Warranties are in place of course.
10. Closing is a time when ownership and possession is transferred form the builder to the client. Unless a construction loan is secured by the buyer, closing happens at the title company whether it is a cash or financed transaction. If financed, home owner’s insurance is required and strongly recommended for cash buyers.
Hope you find this helpful.
