Building a custom home can be an exciting, hectic experience. Before the process even begins, set yourself up for success by knowing what to expect from it. Buying a home is already a complicated process. Building one from the ground up is even more layered and complex. Knowing what you should anticipate throughout the process –from start to finish– will be a great asset to you as you go through the long and sometimes taxing custom home building process.
There is a lot of upfront planning to complete before you can break ground on a custom home building project. Knowing what’s to come ahead of time will help you set realistic expectations. It’s not as easy as deciding to build a home, sketching out a design, and getting the ball rolling right away. The pre-building process is quite involved.
Here’s what to anticipate before construction starts on your custom home.
Unlike what many assume, you should seek out a build and design team before you find the perfect lot for your home. It’s crucial to understand the construction market when selecting land. There are many considerations to keep in mind that the average consumer isn’t likely to be aware of.
Your build team will help you better identify a lot with building potential. With their expertise and resources, you’ll have a far better chance at finding a perfect lot. They will look out for details such as storm easements, topography, and soil quality. These features aren’t necessarily easy to vet for the untrained eye.
When you start to look for a builder, you should know what you’re searching for. Just like any important relationship, you should mesh well with your build and design team. First, find a broad sample of builders that might be a good fit. Narrow down your list using past client reviews and assure they maintain adequate licensing. Interview some of your top contenders and select a trustworthy contractor you are willing to form a partnership with.
Once you select a fantastic team of builders and designers, you can start to plan and finalize your floor plan. Your team will help guide you through the process from start to finish. You can come to the table with specific desires or with an open mind – they will be able to accommodate your needs either way.
Do keep in mind that your floor plan will only be 95% complete when you start the construction process. The plan is subject to change throughout construction. Bumps along the road and re-routing are inevitable when building a custom home.
Securing the financing side of things will be slightly different than buying a home that’s already built. You will more than likely need a few separate loans: one for the mortgage of the home after construction, a construction loan, and a loan to purchase the property.
A construction loan will require an appraisal of the finished new home. In order to approve this ahead of time, you’ll need to present the lenders with a design, floor plan, and a list of features and specifications. These loans are never paid out in a lump sum. Your builder will draw from the loan as they complete specific projects.
The land you build on also requires a special loan. Most property loans require a 20% down payment. Be sure your financial situation allows for this.
Permits are a crucial part of any custom home construction process. They ensure that a home is being built according to local and state regulations. Every state, city, and county will have slightly different requirements and the permits will likely vary in cost as well.
Be sure to secure permits well in advance. It can take several days or even over a week to get approved for certain building permits. If any major changes in design occur during the construction process, you’ll need to amend certain permits to fit the new floor plan.
The actual construction of the home will take several months or even over a year to complete. Expect your timeline to shift along the way due to changes in design, issues with securing materials, or weather.
While timelines can vary slightly from project to project, this is the general schedule you can expect while your home is under construction:
Many people confuse a custom home with a spec home. A spec home is a project that starts with the developer buying a lot. They will then design and build a home on the “speculation” that someone will be willing to buy it. There is usually no room for the consumer to make any customizations.
When pursuing a custom home build, you should also not expect everything to fall into place overnight. There will be a lot of time dedicated to planning, carrying out, and completing the home.
Last but certainly not least, don’t expect a seamless process without any holdups. The name of the game with custom home building is flexibility. You never know what issues may arise along the way. As the home buyer, prepare yourself for changes and delays throughout the process.
When you decide to build a custom home, you should be sure the designers, builders, and contractors around you are the best of the best. You are in it for the long haul with these folks. The last thing you need is to be at odds with your team through this process. Pulling together a team of people you trust and actually enjoy will make or break your custom home-building experience.
If you’re looking for a team you can rely on in the Northern Colorado area, Forge & Bow is here to help! We believe in fostering a life-giving experience with our clients throughout the home-building process. Together, we will collaborate with you to create a dwelling deeply infused with your personal style and tastes. Get in touch for more information!
