Did you know that the construction of single-family homes increased by 12 percent in 2020 alone?
With so many families staying home for the foreseeable future — and the U.S. housing shortage — the home building process has become a plausible option for many families and future homeowners.
It’s easy to think the process is simple from the beginning, but it’s important to realize that there is a lot that goes into building a home of your own. Luckily, though, we’re here to help guide you through it all.
From property buying to home warranties, read on to learn everything you need to know.
Find a Real Estate Agent
While having a real estate agent isn’t technically required for buying new construction, it’s definitely a good idea — especially if you’re a first-time homebuyer.
Having an agent in your corner is not only going to ensure you have someone looking out for you the entire time, but it’s going to help you have a guide throughout the entire process.
A real estate agent is going to know all the rules, regulations, and laws that come with not only purchasing a home but constructing a new one. A lot of the time, your builder is going to recommend an agent, but it’s a good idea to vet that agent before you agree to work with them.
On the other hand, if you don’t have a property or builder in mind yet, then a real estate agent can help you find one and get started.
Build Your Budget
Next, you’ll need to decide on a budget.
To start, you can research the market in your surrounding area to get a realistic idea of how much a new build is going to cost. From there, it’s up to you to choose a number that fits your budget while still accounting for all the features you may want in your new home.
Also, don’t forget that a lot of home builders require a down payment and that you’ll need that money upfront, so saving is a must.
In this case, you’ll also probably need two loans — a construction and a home loan.
Custom or Spec?
The other thing you’ll have to decide on is whether you want a completely custom home, or if you want to go with a spec designer. Custom homes are exactly what they sound like, you design everything from the ground up and they generally come with a lot of freedom.
Spec or semi-custom home builders usually have a set of two-six floor plans you can choose from. From there, you’ll also be able to choose between different features in your home, like countertops and flooring.
Find a Property
Whether you already have an agent or not, the next step to take towards your new construction is finding a property to build on.
It’s important to be mindful when you’re choosing a new property, however, since you want to ensure you’re building in an appropriate area (i.e. you don’t want to build an expensive home in a cheap neighborhood).
From there, you’ll also want to research the property itself. Things like zoning, utility hookups (think water, sewage, cell service, or even power), and even necessary preparations are all things to take into consideration here.
Choose a Builder
From there, you’ll want to ensure you can find a builder that’s OK to build on the plot of land you’re looking to purchase.
This is going to involve a lot of research on your part, but starting out with a list of potential builders can make all the difference in the world. You can weed out all the ones who don’t meet your standards, make a list of those who do, and then go back and further narrow down your prospects until you’re OK to make an offer.
It’s also important to ensure you’re shopping for quality and overall value in your builder.
This means looking at new homes in your area, as well as any past work the builder has done.
From there, it’s time to make an offer on the property you’re interested in, as well as on the builder you’re interested in working with.
The Design Process
Once you have the property secured, it’s time to start the design process! The amount of freedom you have is going to depend on your builder, but the most important thing is to pick a plan that works for you.
Remember that this can take time. Whether you’re building a spec or custom home, you’re building something that’s going to serve you and your family for many years to come and you want to ensure that you’re building something worthwhile.
Closing and Move-in
Finally, you’re on to closing the deal and moving into your home.
During this time, you’ll want to conduct inspections to ensure everything fits your standards and that no mistakes have been made. Make sure you test everything, like appliances, toilets, and light switches. If you notice any problems, you’ll want to have them addressed before closing.
After that, it’s time to sign all the final paperwork and close out all your transactions. Once that’s complete, you’ll receive your keys and officially be a homeowner.
Ready to Start the Home Building Process?
Now that we’ve gone over each step in the home building process, it’s time to get started. You might feel overwhelmed or nervous at the thought of building your own space, but if you do the proper research and ensure all your bases are covered, then you won’t have anything to worry about.
To get started, check out what we have to offer today.