DREAM BIG THEN BUILD IT — A CHECKLIST FOR A NEW CONSTRUCTION HOME

By Katie Baker

It’s the new year and you have finally decided to build your dream home. After searching through endless social media posts or Houzz, many people have been inspired and are choosing to build their dream homes. However, a few flashy posts and pictures showing an artfully created kitchen do not give an accurate image of the building process. While the challenge of building a home can be extremely gratifying, there are several questions a novice Buyer should ask before the first shovel hits the ground.

What is your style?

It’s time to make a dream home wish list with the help of a local Realtor. A knowledgeable Realtor can assist a buyer by scheduling showings on homes that match their wish list. Viewing existing homes will help a buyer visualize what they do and don’t want in the home they build. Visiting local design or model homes is another way to get the creative juices flowing.

What is your budget?

A simple call to a trusted lender will give a buyer all the numbers they need. Don’t forget overages are to be expected. Plan for added costs in the end. Recent studies have found that, on average, nationwide construction projects exceed their budget by 16% at minimum.

(Source Propeller Aero)

Two types of financing to consider:

Construction Loan: This type of loan requires periodic inspections by the bank to release funds to pay builder invoices. And don’t forget to ask for details on the mortgage rate during construction and after completion.

Equity Pull: If a buyer has enough equity in their current assets (home or home plus investment properties) then they can discuss refinancing current assets to pull cash out for the build.

Raw Land or a Planned Unit Development?

Raw Land gives the homeowner the opportunity to design a home from the ground up with their own ideas. A buyer can choose from two options: hire an architect to draw house plans and a builder to build the house or hire a builder who may already have plans to choose from. Interviewing several architects and builders is the key to finding a team that can match a buyer’s style and budget. This route also gives a buyer the most creative freedom when it comes to the details of their home.

A Planned Unit Development is typically a large tract of land, such as a subdivision, that has already been designed by a developer. The building lots either have a house plan already assigned to the lot, or a buyer can pick a lot and then choose from a variety of builder-supplied house plans to build on said lot. Before Covid, a builder might have allowed buyers to choose from a variety of interior finishes in the builder’s design package. For example buyers were able to pick floor colors, tile options, paint, countertops, and light fixtures. However, post-Covid most builders are now choosing the interior finishes on the front end to help control costs along the way.

What is your timeframe?

With supply chain issues still lingering, it is important to have patience when building a home. Lead times for materials may cause delays so having regular conversations with the builder will help a buyer plan for the road ahead.

Decisions, Decisions, Decisions

Wondering how to choose every paint color, doorknob, and light fixture? Consider hiring an interior designer. Designers work in a variety of ways. E-consults are a modern and economical way to design a home with everything chosen digitally. A traditional interior designer will work with a buyer on a one-on-one basis. Ask a Realtor for recommendations for local design firms or boutiques that offer these services.

The Finish Line

As the build process comes to a close, it is more important than ever not to skip steps in the rush to finish a home. A buyer is advised to perform a final home inspection and blue tape walk-through with their builder before moving in. The blue tape is used to identify any glaring imperfections that should be fixed before moving in. A licensed home inspector can also ensure major components of a home are in working order.

Building a home can be an enjoyable experience with the right team guiding a buyer. To get started, the Katie Baker Group has created a simple checklist to assist buyers through the build process. This simple tool should be used as a handy guide in tandem with a licensed team of experts. For more questions on how to build your home contact the Katie Baker Group in downtown Columbia.

KATIE BAKER is a local Realtor and owner of the Katie Baker Group with RE/MAX Encore in downtown Columbia. Katie and her team of professional agents work to elevate the real estate experience while overseeing every aspect of a sale.

ESTABLISH A TEAM

❏ Meet with a REaltor & Mortgage Lender to establish your wish list and budget

❏ Interview Builders, Architects, Interior Designers

❏ Ask if your builder uses a Fixed Cost or Cost Plus Contract

CHOOSE A LOCATION

❏ Raw Land - discuss build-to-suit options

❏ Planned Unit Developme nt - compare neighborhoods, amenities, and home styles

BEFORE YOU BREAK GROUND

❏ Finalize Floor Plans

❏ Rent a storage unit to house materials and furniture during construction

❏ Budget for overages that may occur, as building costs fluctuate

IT'S GO TIME!

While your builder starts the foundation, framing, and rough-in, a buyer starts the design phase

DESIGN DECISIONS

❏ Flooring

❏ Cabinets & Countertops

❏ Paint Colors

❏ Light Fixtures

❏ Hardware: Plumbing, Kitchen, Door Handles

❏ Tile

❏ Furniture & Appliances

❏ Outdoor: landscaping lighting, doors, mailbox, entertaining space

❏ Organization: shelving and storage options

❏ Final Walk-Through

❏ Home Inspection & Blue Tape Walk-Through