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The building process is not as difficult as many people think it is. I t can be a very exciting and an enjoyable experience. A lot of the horrors stories that you hear are from folks who have not had a knowledgeable Builder, Broker or lending institution. Any time communication between the builder and what the customer wants and expects are not met, problems will occur.
I will go through step by step the process of building a home and selling your existing property. The way that I work has been successful for myself and for my clients. I may not answer all of the questions that you may have in this overview, but I am happy to assist you by e-mail or phone with any additional information that you may require. I will do my best to help you the consumer build the home of your dreams and market and sell your existing property. The first step in the process is to have a Real Estate Broker view your existing home and provide you with a Comparative Market analysis of your property. With this information, you know what your home is worth in today’s Real Estate Market. You can then have your Broker do a “net out “. This will give you an approximate idea of what fees are involved in selling your home and what dollar amount you will walk away with after all is said and done. The next step is to visit your preferred lending institution to pre qualify you for your new home. The lender will also give you options on available financing programs that are available. The lender will also explain what to do if your home doesn’t sell as quickly as you would like. There are options such as renting your existing home or doing what is called a bridge loan. Check with your financial institution to explain how these programs work Now that you know what amount you qualify for it’s time to meet with the Builder and your Broker. Do not go into meet with a builder without your Broker being present to represent your best interest. Remember the Builder pays the Brokers fees so your representation is free. Have your wish list ready for the builder. You may not be able to get every thing you are looking for, but it doesn’t hurt to ask. Track Home Builders usually have set floor plans and will not be as flexible on moving walls and making Architectural changes. The reason being, it is costly in most cases to go back in and have a plan redrawn by an architect and having an engineer make sure that it is possible to do what you requested. Then there is the process of re-submitting a plan to the city for approval. A custom builder will be able to make changes to plans, move walls and will do so the majority of the time without charging you any additional fees. That is the beauty of building with a Custom Home builder. You will also receive more attention to the details of the home. Remember if you are designing from scratch expect Architectural/engineers fees to draw your home plans. Once you have decide on floor plan, elevation and price has been agreed upon, your Real Estate Broker will put write a new construction purchase agreement. In this agreement there will be details of what you the consumer and the builder have agreed to. If your house has to be sold in order for you to build, there will be a contingency clause implemented into this agreement to read that this contract is contingent upon the sale and funding of your existing property located at your property address. Most builders will start the construction process once you have secured a solid contract on your existing home. But each individual Builder is different, so ask the question. What about land purchase and construction financing? The builder in most cases will purchase the lot and take out the construction loan for you. They will work off of draws from there lending institution. As each stage of building is completed an inspector will come out to the property to view that everything is done and in order before the next draw is released. If you are paying cash for your home, you will work in the same way. You will authorize draws to the builder. The amount and times of the draws will be determined when your Broker puts your initial contract together. Remember the contract that you sign will be a legally binding contract between the builder and yourself. Have your broker go over each part of the agreement so that you fully understand what you are signing. You can hire an attorney to review if you wish. As the building process begins, you should visit the construction site to view the evolvement of your home. Note that you will have to abide by builders rules for safety and insurance purposes while on the construction site. What about color selections and upgrades? The builder will either have a show room where you can choose your tile, carpet, paint, light fixtures etc. or they will give you a list of suppliers that they use and you can visit the individual showrooms to make your choices. The builder will give you dollar allowances on all items, if you choose to upgrade you can either ad the cost to your loan (depending upon your lenders guidelines) or you can pay for the upgrades at the closing of your transaction. The last and final step before you attend your closing is to walk through the home to learn how your home works. This is where the builder and your broker go through your new home showing you the features of your new property. If there are touch ups that need to be done they are noted at this time by your Broker and the builder. There will be items that come up after you close. Make a list of things that might need the builders attention after you are in the home a couple weeks, then let the builder know what needs attention so that he/she can take care of any touch ups for you all at once. Most builders will give you a Builder Warranty at the closing of the property. There will be extended Warranties given on appliances, roofing, heating, cooling etc. provided by the manufacturers. You should receive these at your closing. Congratulations!!!!! You are a new homeowner. Enjoy your new home! Best Regards, Nancy Harville Qualifying Broker of The Harville Estates |