Building a new home presents many advantages when compared to purchasing a resale home. It also poses new decisions. Where will your new home be located? What choice of a floor plan for your new house will be available? Which builder will create the structure to meet your vision? How will you pay for your new home?
Choosing a new site for building a home will entail the same questions required for purchasing an existing home. Is it close to family, friends, work, schools, medical facilities and shopping? It also presents additional decisions. Is the new home site within a subdivision? Is the land raw or will you have to run new utility lines? Which utilities are available? Will the new site require a septic system or is there a public sewer system?
Once you have decided where to build, the choice of what type of home and floor plan must be made. Do you want a one or two story structure? How many bedrooms, bathrooms, garage stalls and square footage will accommodate your needs? Will your chosen plan fit on the home site? After the foundation is poured, how much land will be left for a yard?
Who will build your new home is an important decision. A custom builder has the ability to modify plans and create a contract specific to your needs. It is an agreement between you and the custom builder. A production home builder offers specific floor plans, elevations and home sites within a subdivision or established community. Usually choices are available for colors, fixtures, flooring, appliances and very specific amenities, such as porches and additional garage bays, if the plans can accommodate. Becoming your own general contractor, unless you are extremely experienced with residential construction, will require research, organizational skills, coordination of subcontractors, financial expertise, due diligence and patience.
Unless you are paying cash for your new home, financing new construction varies with the method and schedule of your builder. Construction loans, in general, require a schedule of inspections and a schedule of fund disbursement, depending on the policy and agreement with the financial institution. Production builders will require pre-approval and a deposit before construction commences. It is important to maintain your financial balance throughout the process to close on the home when it is completed.