THE ULTIMATE GUIDE TO BUILDING A NEW HOME
When you build a new home from scratch, you don’t have to worry about adjusting your lifestyle to fit someone else’s preferences. Instead, you can design every room in your new home to perfectly fit you and your families lifestyle.
Don’t worry – the process doesn’t have to be daunting. With a little bit of education and preparation the building process can actually be an effortless and enjoyable journey.
We’re going to show you how to:
Find out how much you can borrow and how to get the best deal on your home loan
Come up with an accurate budget (without missing some of the ‘hidden’ costs)
Decide on the best house design and layout (while avoiding typical beginner mistakes)
Choose the best builder to bring your vision to life (while avoiding all the horror stories)
Understand building contracts to keep the legal side of things under control
Keep track of each stage of the construction process
Where you are going to build your new home. This could include factors such as public transport, schools, distance to work, where other family members live, parks or playgrounds or even capital growth potential of the area.
TYPE OF HOME
Building the home of your dreams primarily means coming up with the perfect design to fit your ideal lifestyle. What exactly do you need? What do you want it to include and within what limitations (i.e. money, location, block size, etc.)?
FINANCE AND BUDGETING
First things first, before you can get down to the ‘fun part’ of building a house, you need to figure out how much the project is going to cost. Or to put it differently, how much you can realistically afford to borrow (and spend) on your new home.
Steps to Building a House
If you can’t find your dream home on the market or if you want to create a home that’s uniquely yours, you might consider building a house. Buyers who decided to build new homes were more likely to say that selecting the floor plan, having everything in the home be brand-new and customizing their home features were among their top reasons.* Before deciding if new construction is for you, you’ll want to learn about the different types of new-home construction and familiarize yourself with the process, from the initial land search all the way to selecting finishing touches.
Typically, when someone says they’re planning to build their own home, they are referring to a fully custom build where they have a say in almost everything (short of items restricted by local laws and zoning regulations). But, in the realm of new construction
Spec homes. With a spec home (short for speculative home), a home builder designs and constructs a single-family home without having one individual buyer in mind. Instead, they plan on selling the house to a buyer once it’s finished. Depending on how early in the process you are able to go under contract, you may be able to select some of the home’s final touches, like flooring, kitchen appliances and paint color. Sometimes these homes are listed for sale as “pre-construction.”
Tract homes. With a tract home, a developer purchases a parcel of land and divides it into individual lots. Then, a home builder constructs all of the homes in that planned community. Tract homes can be condominiums, townhomes or single-family homes. Most homes in the community will look similar, and shared amenities are common. Similar to spec homes, you may be able to select some finishes in advance, depending on the timeline.
Fully custom homes. With a fully custom home, you typically find the land on your own then hire a builder to build your dream home. You have total control over the floor plan, layout and finishes, but the process requires a lot of decision-making, attention to detail and disciplined budgeting — custom homes can be expensive.
Helpful tips for building a house
Building your home from the ground up can be an incredibly rewarding experience. It gives you the opportunity to tailor your home to suit your tastes and needs both now and in the future. But as anyone who’s watched any homebuilding show can tell you, it can also be a tremendously stressful and time-consuming process.
Get your plan in place
eccentric widow who thought if she stopped construction on the house, she’d fall prey to vengeful spirits. The house is a labyrinth of stairs that dead-end into ceilings, hallways that grow narrower and narrower until they disappear, doors that open onto two-story drops. This is what happens when you build without a plan. It’s fascinating, but not a very welcoming abode.
Make sure you meticulously plan the details of your house. What direction will it face on the lot? What will the layout and flow of the rooms be? What kind of lighting will you use, and how many power points will you install? (tip: you always need more than you think).
You’ll also want to start keeping track of design ideas that inspire you, and that you’d like to emulate. Think about starting a Pinterest board for each room of your house to file away examples of your favorite designs. As well as helping you plan, they’ll be a great point of reference to show your builders before construction is underway.
Budget more than you expect
No matter how much you think the building process is likely to cost, it’s likely going to cost more. There could be any number of items that aren’t included in the estimate your builder gives you. For instance, your builder is unlikely to include costs such as electrical and gas meters, internet & cable hookups or window coverings. Items such as landscaping and outdoor concrete, fences and gates, decking and letterboxes might also not be included in the estimate. These are known as finishing costs, and could run anywhere from 15-25% of your budget. You’ll also need to take into account site costs and zoning fees, which are the costs associated with preparing your site for construction, and you may also have to pay for planning application fees.
The home building guide
Here is a list of important things to keep in mind when you decide to build your own home:
l Prepare for delays and extra costs
l Take natural lighting into consideration when designing the windows
l Think about the saleability of the property when you plan it
l Plan for extra electrical outlets all over the house
l Be actively involved in the entire process
l Thorough investigation while selecting the builder or contractor
l Be short-sighted about your family’s space and storage needs
l Miss out anything from the written agreement
l Put cost before quality. Good materials will stand the test of time
l Ignore the advice of professionals
l Rush into the building process
l Land title, land clearance and zonal clearance (from the State Revenue Department)
l Copy of the Building Plan Approval will be needed by many agencies like the land development office or electricity board, etc.
l The floor plan can be taken from the architect and engineer
l The local authority will provide a permission letter and commencement certificate
l The local water supply and sewage board will have to be paid a certain fee and they will then inspect the premises before providing water and sanitary approval as well as sanctioning a new borewell for the house.
l The electricity board will grant temporary electricity connection before metered connection is given after completion of the construction
l After inspection, you will get an occupancy certificate by the authority
The construction costs will depend on the location of the plot and the amenities nearby. That said, the current construction cost is anywhere between $1500 and $1700 per sq.ft. for building a budget home, $1800-$2200 per sq.ft. for building a luxury home, and approximately $2600 per sq.ft. for a premium home.
Home Building Manual
Management is the Key!
This manual is written for the “white shirt”… the MANAGER … the person that isn’t going to go out and hang drywall or lay sod or swing the hammer. Many homebuilding manuals focus on actual construction techniques: how to frame a house, wire it, plumb it, install the drywall, and so on. But as a Manager, you don’t want to actually build the home yourself. You don’t have the time nor the skills. That’s why you hire other people to do the work. They are called Sub Contractors. And you need to know what they do and when they need to do it….
Building it Right, The First Time!
If you’re serious about building your own home…… This is the Construction Manual you’ve been searching for. This is NOT a Guide or Pamphlet. This is THE HOME BUILDING MANUAL that is used throughout the United States by new and experienced home building professionals.
How Much Will The Home Cost ?
Before you approach a lender you must have a Construction Budget. Our budget is 16 Pages long, with over 700 line items!! Items such as Loan Application Fees, Builders Risk Insurance, School Impact Fees, as well as Construction Expenses for Excavating, Insulation and Carpet Installation are included, and much more
Keeping Your Home On Schedule
Tracking reports, construction time lines, and chronological check list schedules are a must if you want to “make things happen” at the “right time”. Included in this Home Building Manual, you’ll find:
Pre-Construction Check Lists- Over 120 Construction Check List Items to consider before you even stake your lot. It is intended to identify expense areas and review events and conditions that may have an impact on the home you are building.
Construction Event Schedules- Over 500 Chronological and Sequential Check List Events that must be addressed AND completed in the building of ANY home.
Daily Activity Report- A document form to keep track of the daily events that occurred on your home. Weather, Site Conditions, Who Worked, What Happened!
85 Day Critical Event Schedule- These are the KEY “Critical Events” that MUST be completed before the home can proceed to the next “Critical Event”.
100 Day Construction Timeline- A graphic presentation of Critical Events as they relate to one another.
Back-End Event Schedule- After the home is Insulated, things can become hectic. This detailed schedule will “Keep You Focused” and help you manage the construction events in a practical, step by step process.