No Houses Available? Why Not Build a New One!
The housing market continues to show no signs
of slowing down. Because of this, it’s become increasingly difficult for
homebuyers to find a suitable existing home. If you are in the market, don’t
fret. You have the option of building your own house from the ground up. Here
are some things to think about as you contemplate the possibilities.
You
Need a Starting Point
Often, you begin the new home building process
by interviewing builders. This is essential since no two are
alike. When looking for a custom home builder, asking around for
recommendations is the best route, because you know you’re hiring a reputable
service. During the interview process, find out how many years of experience
they have and ask to see examples of their work.
When you do find a homebuilder you like, your budget will be one of the first things
they ask about. While building a home is not as costly as many people expect,
there are a few expenses that you don’t incur when buying an existing
structure. First is land. If you do not already own property, you will need to
buy a building lot. Keep in mind, however, that some have zoning restrictions
that forbid residential dwellings. Another issue you may not consider is the
topography. LandCentury stresses that you need to do your research to determine
whether the piece of land you have your eye on will work for your next family home.
Do You
Know What You Want?
When you are scrolling through the MLS, you
are limited by availability. But when you build your own home, you suddenly
find yourself with virtually unlimited possibilities. For example, you probably
have given very little thought to the actual layout of your kitchen. When you build, you’ll
be asked if you prefer galley, U-shaped, L-shaped, or another style. You will
have to make decisions about each room. Your builder will also ask you about
the materials you prefer from the carpet to the light fixtures. Spend a few
weeks attending open houses for homes of all price
ranges to get a better idea of what you want so that you can give clear directions
to your builder.
Let the
Wait Begin
When you build a home, it is brand-new and
completely customized to your specifications. However, the downside is that it
takes around seven months — sometimes more — before
you can move in. The process can be delayed by everything from weather to
failed code inspections. While your builder will be familiar with building code
requirements in your area, keep in mind that these change often, and a home
that takes several months to complete may not be compliant at the end of the
process if local regulations have changed.
Financing
Options
Since credit score and income rules for
financing a build are stricter than a traditional mortgage, you would do well
to research your lending options. Rather than taking out a
high-interest, short-term loan, go with a construction-to-permanent loan
instead. That way, the builder is paid while completing the home, and upon
closing, the loan then turns into the mortgage and interest rates are locked
in. Before choosing this option, however, make sure your builder has experience
with meeting construction deadlines and that your down payment is sufficient.
This is certainly not a comprehensive guide on
building your own house. However, it should serve to give you an idea of how to
start the process. Your most important task is to find a builder who is
familiar with the area and is willing to discuss all of your options. This will
be your most valuable partner from the time ground breaks until a Certificate of Occupancy is issued.