NEW CONSTRUCTION
DECIDING IF IT'S RIGHT FOR YOU CHOOSING A BUILDER LOAN PROCESS BUILDING STEPS
W E L C O M E
You’ve been searching for the ‘perfect’ house for months (maybe even years) and you just can’t seem to find the right fit. If you ’ ve exhausted all options for homes available to purchase, it might just be a sign that you need to build a home that is ‘perfect’ for your family’s needs. You’ve also done your due diligence and you are aware that it might be less expensive to buy an existing home (that already has mature landscaping), BUT you ’ re willing to spend a little more money to build a home so that you get exactly what you want and can customize the details
Building your new home is exciting, and at times, an overwhelming experience, but for your builder, it is very routine, which is why it’s important to be an active participant in the home building process This helps ensure you end up with a home that truly reflects YOU.
If you have realistic expectations for what caliber and size of home you can comfortably afford, then you are ready to build.
Like I said, you might never be fully ‘ready’ to build a custom home (just like you ’ re never fully ready to have your first baby), but if you have the desire and the willingness to put in the time and effort PLUS you ’ re financially prepared, then it’s time to discuss!
KatieMurphy
G E T T O K N O W M E
Katie M
I am a long-time local of the Lowcountry I have spent time living on Hilton Head Island, in Bluffton, and currently reside in Beaufort, where I have been able to enjoy all of the recreation and beauty this area has to offer - making me suited in providing you with a wellrounded perspective of various locations within the Lowcountry.
When you work with me, you are working with a Design Professional and licensed Realtor who is compassionate for my clients and focused on customer service, and the experience I provide while helping you navigate the home building and buying process. I regularly work with sellers and buyers on existing homes, but am also a dedicated expert within the Lowcountry for designing and building your dream home with the top builders in Beaufort County and surrounding areas! I help stage homes, new and existing, and use a professional photographer and videographer as well as 3D multi-floor digital walkthrough to market my listings to stand out above the rest!
I am a local Design Project Manager, assisting you, as my client, throughout the entire design-build process It is my job and expertise to take you by the hand and guide you through the building process one step at a time, so you can enjoy every aspect of building your new home
M Y
C O M M I T M E N T
DEDICATED SERVICE
From the day you place your trust in me to help you find the right builder, I pledge to you to provide the quality of service that you deserve You will receive the highest standards of professional and personal service from me and my team
HANDLING HARD CONVERSATIONS
When obstacles or changes arise within the build, I will be your guide through that process I handle finding solutions to the obstacle(s) at hand , scheduling asneeded with your builder’s superintendent, and following any pricing/allowance adjustments so you know where you stand along the way
ON YOUR SIDE
As your dedicated Design Professional, I will represent your best interests. With a pulse on the day-to-day of your build and a sound understanding of how the custom home building process works, I will make sure to keep you in the loop as progress is made and if there are any questions or concerns that arise during the life of the build
SUSTAINED COMMUNICATION
I will discuss with you exactly how my team works and what you can expect I will communicate regularly and you’ll know everything that’s going on as soon as we know it
PROBLEM SOLVER
I will work hard to protect all of your interests and take on any issues that may arise throughout the entire process Hopefully making building your custom home a fun and stress-free process
SECTION 01 IS NEW CONSTRUCTION RIGHT FOR YOU
Q U E S T I O N S T O
ASK YOURSELF
F o r m o s t p e o p l e , b u i l d i n g a
c u s t o m h o m e i s a o n c e i n a
l i f e t i m e o p p o r t u n i t y a n d c a n
b e r e a l l y e x c i t i n g ! I t c a n
a l s o , h o w e v e r , b e
i n t i m i d a t i n g , e s p e c i a l l y i f
y o u ' r e n o t a d e q u a t e l y
p r e p a r e d o r h a v e t h e r i g h t
t e a m b e h i n d y o u .
I f y o u ' r e t h i n k i n g a b o u t
b u i l d i n g y o u r c u s t o m d r e a m
h o m e , h e r e a r e s o m e
q u e s t i o n s y o u s h o u l d a s k
y o u r s e l f b e f o r e g e t t i n g
s t a r t e d .
W H A T ' S T H E
D I F F E R E N C E ?
NEW CONSTRUCTION RESALE PROPERTY
W A N T P E A C E O F M I N D K N O W I N G
T H A T E V E R Y T H I N G I S N E W
L O V E T H E I D E A O F F I X I N G U P
A H O M E
W A N T L E S S M A I N T E N A N C E W I T H
F E W U N E X P E C T E D R E P A I R S
D O N ’ T M I N D T H E U N C E R T A I N T Y
O F U N E X P E C T E D R E P A I R S
W A N T I N C R E A S E D E N E R G Y
E F F I C I E N C Y A N D S A V I N G S
W A N T T H E L A T E S T S M A R T
H O M E T E C H N O L O G Y
P R E F E R H O M E S W I T H O L D
W O R L D C H A R A C T E R
W A N T I M P R O V E D I N D O O R A I R
Q U A L I T Y
E X C I T E D A B O U T T H E A B I L I T Y
T O C U S T O M I Z E T H E H O M E
P R E F E R A N E S T A B L I S H E D
N E I G H B O R H O O D W I T H M A T U R E
L A N D S C A P I N G
W O U L D R A T H E R P U R C H A S E
N O W B U T M O V E L A T E R
As soon as possible 3 to 6 months 6 to 12 months 12 months or longer
$500,000 to $700,000
$700,000 to $850,000
$850,000 to $950,000
$950,000 to $1,000,000
$1,000,000 to $3,000,000
$3,000,000 +
Customization. Building a house from the ground up, to personalize the details to suit my lifestyle and tastes from the layout, cabinets and flooring to the sinks, lighting, paint colors and door/cabinet hardware
Lower maintenance. Since new homes are built to meet current building codes and have up-to-date technology, no worries about big repairs or heavy maintenance issues for the first few years meaning no leaky roofs or failing HVAC systems! Plus, many homebuilders offer a limited warranty if something should break
Lower energy costs. New homes feature the latest energy-efficient systems and materials, which usually leads to lower energy bills which is a huge plus!
Newness Start fresh as the first owner of my home and enjoy brand-spanking-new systems, finishes and fixtures
Location. Choosing the lot or land and the location that best fits you
W H A T A P P R E H E N S I O N S
D O Y O U H A V E A B O U T
B U I L D I N G ?
L o n g e r w a i t t i m e . I t t a k e s a n a v e r a g e
o f s i x t o e i g h t m o n t h s t o c o n s t r u c t a
n e w h o m e T h i s m e a n s a g a p i n l i v i n g
a r r a n g e m e n t s b e t w e e n t h e t i m e o f
s e l l i n g t h e o l d p l a c e a n d b u i l d i n g t h e
n e w o n e
S t r e s s . B u i l d i n g m e a n s c h o o s i n g t h e
h o m e d e s i g n , p i c k i n g o u t f l o o r i n g ,
f i x t u r e s , c a b i n e t s , c o u n t e r t o p s , i n t e r i o r
t r i m , e x t e r i o r t r i m , a n d o n a n d o n i t
g o e s I t m e a n s m a k i n g c h o i c e s t h a t s t a y
w i t h i n b u d g e t M a n a g i n g a l l t h e d e t a i l s
t h a t g o a l o n g w i t h b u i l d i n g a h o m e
t a k e s t i m e , e f f o r t , a n d d e c i s i o n - m a k i n g
B l o w i n g t h e B u d g e t . T h e r e a r e d o l l a r
s i g n s t o u p g r a d e c o u n t e r t o p s , f i x t u r e s ,
a n d a p p l i a n c e s U p g r a d e s c a n q u i c k l y
d r i v e u p t h e p r i c e R e m e m b e r p o s t -
m o v e c o s t s l i k e l a n d s c a p i n g a n d b l i n d s
F i n a n c i n g . U n d e r s t a n d i n g h o w t o d o a
c o n s t r u c t i o n l o a n v s a m o r t g a g e ,
t i m i n g , a n d c o s t s
N o i s e a n d l a n d s c a p i n g . B u i l d i n g a
h o u s e w h e r e o t h e r n e w h o m e s a r e b e i n g
b u i l t , m e a n s c o n s t r u c t i o n n o i s e a n d
t r a f f i c I t w i l l c a l m d o w n a s o t h e r
h o m e s g e t c o m p l e t e d , b u t i t ’ s
s o m e t h i n g t o t h i n k a b o u t i f y o u r
t o l e r a n c e f o r n o i s e l e v e l a n d m e s s i n e s s
i s o n t h e l o w e n d A n e w h o m e a l s o
m e a n s p u t t i n g i n n e w g r a s s a n d
l a n d s c a p i n g a f t e r m o v i n g i n
H O W L O N G D O Y O U
P L A N T O B E I N T H E
H O M E Y O U B U I L D ?
1 T O 5 Y E A R S
5 T O 1 0 Y E A R S
1 0 T O 2 0 Y E A R S
O U R F O R E V E R H O M E
D O Y O U O W N L A N D O R A L O T T O B U I L D O N ?
No
Yes
W H E R E W O U L D Y O U
L I K E T O B U I L D ?
Hilton Head Island
Bluffton / Okatie
Beaufort / Ladys Island
St Helena / Fripp Island
Savannah / Pooler / Rincon
D O Y O U H A V E A H O U S E
T O S E L L T O B E A B L E
T O B U I L D ?
No
Yes
Unsure – need to talk to our financial institution
D O Y O U H A V E A
B U Y E R ’ S A G R E E M E N T
W I T H A R E A L T O R ?
No
Yes
-If Yes with who:
A G E N T ' S N A M E
W H A T ’ S M O S T I M P O R T A N T
F O R Y O U R F A M I L Y ?
We want plenty of room and amenities for my family
We entertain a lot so having a great place to throw a party is important
A home with the capacity to allow multi-generations (boomerang children and even their children or our parents to live with us) is something we need
The location of my new home is important for us and the type of lot/land
Having the builder meet budget and time agreements is critical.
Having a customized design in our style done our way with quality custom features unique to just us.
Saving energy with the latest "smart" insulation and energysaving features.
A low-maintenance home that accommodates mobility challenges or someone with a disability.
A good return on our investment
Thoughtful space planning with relaxing, play, flex, and work-athome office space to support the life we want to live
Outdoor space to live and entertain
Design and construction under the same roof, conveniently managing everything from within with a one-stop-shop, making it less stressful, more cost-effective, and easier to stay on schedule and budget.
C O S T
C O
M P A R I S O N S
A C C O R D I N G T O H O M E
A D V I S O R * , B E L O W A R E T H E
A V E R A G E C O S T S I N T H E
B E A U F O R T C O U N T Y A R E A T O :
R E M O D E L A B A T H R O O M
$ 1 4 , 0 0 0
R E M O D E L A K I T C H E N
$ 2 8 , 0 0 0
B U I L D A N A D D I T I O N
$ 8 5 , 0 0 0
W h e n c o m p a r i s o n s h o p p i n g ,
o n e m a y f i n d t h a t a n e w
c o n s t r u c t i o n h o m e c o s t s m o r e
t h a n a s i m i l a r - s i z e d o l d e r
h o m e . H o w e v e r , i t i s i m p o r t a n t
t o t a k e i n t o c o n s i d e r a t i o n t h a t
w i t h a n e w c o n s t r u c t i o n h o m e ,
t h e r e w i l l l i k e l y b e f a r f e w e r
r e p a i r s a n d r e n o v a t i o n s
n e e d e d t h r o u g h o u t t h e t i m e
y o u a r e l i v i n g i n t h e h o m e N o t
o n l y i s E V E R Y T H I N G n e w , b u t
y o u h a v e a l r e a d y c u s t o m i z e d
t h e h o m e s o y o u w o n ’ t n e e d t o
u p d a t e i t t o s u i t y o u r p e r s o n a l
s t y l e
T h e r e i s a l o t t o c o n s i d e r w h e n
d e c i d i n g w h a t t y p e o f h o m e
w i l l b e r i g h t f o r y o u – w h a t
f e a t u r e s y o u w a n t i n t h e h o m e ,
w h a t t y p e o f n e i g h b o r h o o d y o u
w a n t t o l i v e i n , h o w m u c h
m a i n t e n a n c e y o u a r e w i l l i n g t o
d o , a n d m o r e T a l k i n g t o
e x p e r i e n c e d p r o f e s s i o n a l s s u c h
a s R e a l t o r s a n d h o m e b u i l d e r s ,
a s w e l l a s d o i n g y o u r o w n
r e s e a r c h , c a n h e l p y o u m a k e
t h e
b e s t d e c i s i o n f o r y o u i n
y o u r n e w h o m e s e a r c h .
SECTION 02
CHOOSING YOUR BUILDER
D E C I D
E
O N Y O U R B U I L D E R
I f y o u a r e l o o k i n g a t a p l a n n e d d e v e l o p m e n t , f i n d o u t i f t h e r e i s o n e b u i l d e r
o r i f t h e d e v e l o p e r a l l o w s y o u t o b r i n g i n y o u r o w n b u i l d e r I f y o u a r e l o o k i n g
a t b u i l d i n g o n a l o t t h a t i s n o t r e s t r i c t e d t o a p a r t i c u l a r b u i l d e r , i t ’ s
i m p o r t a n t t o r e s e a r c h b u i l d e r s i n y o u r a r e a t o f i n d o n e t h a t i s r e p u t a b l e a n d
s t a n d s b y t h e i r w o r k . I c a n h e l p w i t h e v e r y a s p e c t o f t h i s .
U n f o r t u n a t e l y , s o m e b u i l d e r s f a i l t o d e l i v e r o n t h e i r p r o m i s e s , c u t t i n g c o r n e r s
o n m a t e r i a l s , o r e v e n f a i l i n g t o f i n i s h c e r t a i n d e t a i l s M e e t w i t h d i f f e r e n t
b u i l d e r s b e f o r e y o u m a k e y o u r s e l e c t i o n , t o h e l p d e t e r m i n e w h o w i l l b e t h e
r i g h t f i t f o r y o u a n d b r i n g i n g y o u r v i s i o n s t o l i f e .
I t ’ s i m p o r t a n t t h a t t h e y a r e o r g a n i z e d a n d c o m m u n i c a t e w e l l M a k e s u r e t h e
b u i l d e r h a s s o m e o n e t h a t i s c o m m u n i c a t i n g w i t h y o u t h r o u g h e v e r y s t e p o f t h e
b u i l d s o y o u k n o w w h e n y o u r c h o i c e s m u s t b e m a d e a n d w h e n e a c h p h a s e w i l l
b e c o m p l e t e d
C h e c k o u t y o u r b u i l d e r b e f o r e s i g n i n g a n y t h i n g F i n d o u t i f t h e r e a r e a n y
c o m p l a i n t s r e g i s t e r e d a g a i n s t t h e m a n d a s k f o r r e f e r e n c e s f r o m o t h e r
h o m e o w n e r s . F i n d o u t i f y o u c a n t o u r a m o d e l o r a r e c e n t l y c o m p l e t e d h o m e
a n d b r i n g s o m e o n e ( l i k e m e ) w h o c a n j u d g e t h e q u a l i t y o f t h e w o r k m a n s h i p
01.
Many builders work with a preferred lender that offers attractive discounts on closing costs when you finance through them It’s important to know if the lender is working as a referral or if the mortgage company is owned by the same company that is building your home If your lender and builder both work for the same company, it’s a good idea to have an attorney review your contracts as an independent set of eyes If you are not required to use their lender, talk to other lenders to see who can give you the best financing.
02.
Builders use their own contracts that are similar to a regular sales contract but include additional terms specific to the building process, such as at what points during building the contractor gets paid, and what options you have to choose from Your agent can help you interpret the terms of the builder’s contract before you sign
03.
This will depend on whether the build is a production home, meaning the builder is building select models throughout the development, or if you have hired the builder to build a custom home Production homes can be completed in three to four months, whereas custom homes usually take a minimum of six months Regardless, the builder should be able to give you a timeline outlining each phase of construction Factors affecting the timeline include weather, delays receiving building supplies, or the number of changes you make along the way
04.
You may wish to upgrade certain items, such as cabinetry, plumbing, or lighting fixtures, or you may want to save money by buying your fixtures or appliances on sale. Make sure your builder is open to you making choices outside of their selections. Usually, they will work with you as long as your selections are available and can be installed without major changes to the structure. Be sure to ask how the selections process works.
Many people assume their finished home will look like the model or the graphics in the brochure, only to find out that the builder’s landscaping package is the bare minimum, or even non-existent You may choose to upgrade it or plan to add your own landscaping
Look over the builder’s contract carefully, or have an attorney do so, and note if there is an escalation clause that would allow the builder to pass cost increases onto you in the event that materials or labor costs increase during construction. Many fully custom build projects are “cost-plus” which means much of this increase will pass along to you unless it is a “builder-fault” cost increase incurred. 07.
Normally a builder offers a warranty lasting from six months to two years, possibly longer for some items. You should know what is covered under the builder’s warranty and for how long. All the major structural items and mechanical systems are usually covered. Appliances are not, but they should come with a manufacturer’s warranty. Damage from weather, shrinkage or expansion of the home or foundation, and anything resulting from the homeowner’s failure to provide maintenance or from work done on the home after construction is not covered 08.
Usually, there will be a “punch list” of items the builder needs to finish up at the end of construction This may include a thorough cleaning, touch-up painting, repairing drywall nicks or scratches, last-minute trim work, caulking around cabinetry, changing out or rekeying door locks, and replacing landscaping that didn’t survive planting It’s important that you go through the home before closing to make certain that every detail is taken care of before you sign the closing documents If you and the builder agree that they will come back after closing to finish some details, make sure both of you have signed off on the list of what is still to be finished
SECTION 03
NEW CONSTRUCTION HOME LOANS
Construction loans usually have variable rates that move up and down with the prime rate Construction loan rates are typically higher than traditional mortgage loan rates With a traditional mortgage, your home acts as collateral if you default on your payments, the lender can seize your home With a home construction loan, the lender doesn’t have that option, so they tend to view these loans as bigger risks
Because construction loans are on such a short timetable and they’re dependent on the completion of the project, you need to provide the lender with a construction timeline, detailed plans and a realistic budget
These draws tend to happen when major milestones are completed for example, when the foundation is laid or the framing of the house begins Borrowers are typically only obligated to repay interest on any funds drawn to date until construction is completed
While the home is being built, the lender has an appraiser or inspector check the house during the various stages of construction If approved by the appraiser, the lender makes additional payments to the contractor, known as draws Expect to have between four and six inspections to monitor the progress
UNLIKE PERSONAL LOANS THAT MAKE A LUMP-SUM PAYMENT, THE LENDER PAYS OUT THE MONEY IN STAGES AS WORK ON THE NEW HOME PROGRESSES.
Once approved, the borrower will be put on a draft or draw schedule that follows the project’s construction stages, and will typically be expected to make only interest payments during the construction stage Unlike personal loans that make a lump-sum payment, the lender pays out the money in stages as work on the new home progresses
Depending on the type of construction loan, the borrower might be able to convert the construction loan to a traditional mortgage once the home is built This is known as a construction-topermanent loan If the loan is solely for the construction phase, the borrower might be required to get a separate mortgage designed to pay off the construction loan
C O N S T R U C T I O N L O A N T Y P E S
A construction loan is a short-term loan that covers only the costs of custom home building This is different from a mortgage, and it’s considered specialty financing Once the home is built, the prospective occupant must apply for a mortgage to pay for the completed home
However, there are several other loans available when it comes to home building, from ground-up building to a complete remodel of the entire house There’s likely a loan out there that’s right for you, whether you ’ re starting from scratch with a land loan or completely renovating a home
C O N S T R U C T I O N - O N L Y L O A N
This type of loan is short-term and is usually issued for a year. It’s meant to cover only the actual construction period
Many lenders don’t offer this type of loan. Why? With so many variables like the builder’s cooperation, getting approvals from local municipalities, and more, these are considered higher-risk loans. This means they’re harder to qualify for, and the interest rate will likely be higher than a traditional loan
In addition, if you decide to go this route, you’ll have to pay a second set of loan fees when you apply for a traditional mortgage C O N S T R U C T I O N - T OP E R M A N E N T L O A N
Construction-to-permanent loans are a financing option that prospective custom home builders can apply for Like construction-only, construction-topermanent financing are one-time loans that fund construction and then convert into a permanent mortgage During the construction phase, borrowers make interest-only payments.
E N D L O A N
An end loan is a traditional mortgage loan that a home buyer (if you ’ re building your own home) can apply for after the new home is constructed Unlike some of the other construction loans previously discussed, these are offered by most mortgage lenders
You can get an end loan if construction is complete on the home. One good aspect of an end loan is that the mortgage application for a newly constructed home is the same as it is for any other home.
OBTAIN PRE-APPROVAL OR PROOF OF FUNDS
Builders or developments often work with particular mortgage companies and will offer discounts on closing costs for using their “preferred” lender Whether you use the builder’s lender or someone else, you will need to get pre-approved for financing. If you are not financing, obtain proof of funds from your financial institution
Builders use their own contracts that are similar to a regular sales contract, but include additional terms specific to the building process, such as at what points during building the contractor gets paid, and what options you have to choose from. I will help you interpret the terms of the builder’s contract before you sign
What interest rate can you offer?
Does the rate come with points?
Is it fixed or adjustable?
When can you lock my rate?
What fees can I expect from you?
What type of loan is right for me?
Do I qualify for any down payment assistance programs?
SECTION 04
NEW CONSTRUCTION TIMELINE OVERVIEW
S I T E & D E S I G N S E L
01
QUESTIONS TO CONSIDER
WEIGH THE PROS AND CONS
02
03
CHOOSE A HOMESITE
CHOOSE YOUR BUILDER QUESTIONS TO ASK BUILDERS
OBTAIN PRE-APPROVAL
ENTER CONTRACT WITH A BUILDER
SELECT YOUR OPTIONS
04
05
OBTAIN PRE-APPROVAL
ENTER CONTRACT WITH A BUILDER
SELECT YOUR OPTIONS E N J O Y F O R E V E R
WALK THROUGHS
OPTIONAL INSPECTION
PUNCH LIST CLOSING DAY
AVERAGE TIME TO BUILD
*statistics from NAHB
Bui l di ng a house can take anywhere from si x to ei ght months t o t wo years, based on a number of vari abl es. Locati on, styl e, and si ze of the fl oorpl an, weather, and even the regi on you l i ve i n wi l l affect the amount of ti me i t takes to compl et e the bui l d
Whi l e the thought of owni ng a brand new home bui l t to your exact speci fi cati ons no doubt sounds tantal i zi ng i n thi s hot sel l er ’ s market, i t i s i mportant to know what you are potenti al l y getti ng i nt o and how l ong you coul d be wai t i ng t o move i nto your new house.
Knowi ng al l the factors and the basi c ti mel i ne at the out set wi l l al l ow you to make an i nformed deci si on on whether a new home bui l d i s a ri ght choi ce for you
There are several common sources of delays that new home builds fall victim to Some of them can be avoided or mitigated with proper planning, but some will simply have to be worked through
Permits and Authorization
Depending on where you live, the process to obtain the necessary permits and approvals can be time-consuming Whether it is due to a slightly overworked inspector, restrictions caused by local regulations, or just excessive paperwork that must be filed, delays at this stage are not uncommon It is important to expect potential delays in this area and pad your timeline to account for them
Inclement weather can also delay construction In addition to halting work, storms can cause flooding, damage supplies, or make unpaved roads impassable for equipment Freezing weather and high winds can likewise necessitate the delay of some building steps Curing the foundation, installing sheetrock, painting, roofing, and installation of sewer lines, among other steps, cannot be done during inclement weather Although there is no way to plan for such events, it is important to be aware of the possibility of weather delays
IF YOU PLAN TO BUILD A FULLY CUSTOM HOME, YOU WILL NEED TO
FACTOR IN ADDITIONAL TIME TO MEET WITH THE ARCHITECT OR BUILDER AND DRAW UP PLANS, SECURE THE NECESSARY FINANCING AND PERMITS, MAKE ALL DESIGN DECISIONS, AND ALSO BUILD IN A CUSHION FOR INEVITABLE UNFORESEEN DELAYS OR ISSUES.
Weather, and Environment
Where you choose to build your home will also affect the timeline. You may have found amazing views at your hill-top home site, but bear in mind that all materials and equipment needed to construct your dream home will also have to haul up that same hill, which could cause complications and delays During the preparation process, clearing and leveling the home site in preparation for the foundation could also run into delays, with the removal of trees, rocks, and other unknown debris
Availability of Subcontractors and Workers
During the busiest building time of the year, summer, it is common for subcontractors to be unavailable on schedule due to the number of jobs requesting their attention. Many critical construction steps, from foundation and roofing to electric and plumbing, require licensed subcontractors who specialize in those fields
STYLE AND SCALE OF YOUR HOME
It stands to reason that larger homes take longer to construct, and the same goes for more intricate designs. Building a truly custom home could experience unforeseen delays due to potential issues that come up throughout the process of building a floorplan that has not been built before.
If you are utilizing a floorplan provided by a builder, they will have constructed the same or similar homes before and will be better aware of, and able to plan for, any potential problems
Homes with specialized materials could also potentially face delays if those materials are in shortage or are unavailable at the time they are needed
Additionally, weather issues in the line of transit could lead to shipping delays or even damage to those materials in transit. Incorrect supplies delivered can also create timing headaches.
YOU
One of the biggest causes of delays in new construction is an indecisive buyer. Changing the plans halfway through a build, altering material choices, or waiting to make design decisions until the last minute can delay or even halt construction Part of my job as a Design Professional is to help keep your project on-time, with both you and your builder and subcontractors.
Some materials take weeks to arrive once you order, so if you wait until it’s time to install those materials to decide what you want, it will mean halting construction as you wait for them to arrive.
SECTION 05
START THE BUILD
H O M E S I T E S E L E C T I O N
Now that you have selected your builder and the home you are going to build, it’s time to find the one-ofa-kind piece of land to place it on… the Homesite Not every home fits on every homesite, so now that we know the plan, I can show you what homesites your plan fits on. Once you select your home site, I will help you put it under contract. We will then go over any other remaining questions you have as we proceed with the purchase agreement
S E L E C T I N G O P T I O N S F O R Y O U R H O M E
One of the advantages of purchasing a new construction home is that you get to choose all the features and finishes to customize the home for your lifestyle and personal preferences. This could include everything from the number of bedrooms and baths to choosing whether to add optional features such as an outdoor wet bar or built-in grill on the screened porch.
While this can be very exciting for some, it can also be stressful for others as there are many decisions to be made. I am here to help make this process less overwhelming, and help prepare you for allowing plenty of time to make the decisions that will bring you happiness for years to come.
Builders typically offer standard items that are included in the negotiated sales price of the home This may include items such as standard flooring, cabinets, faucets, appliances, and more Be sure you are clear about what items are included in the sales price of the home before you sign the contract
Available upgrades can vary greatly by builder. They may include structural options such as rear decks and finish options such as faucets, fireplaces, and lighting U P G R A D E F E A T
Structural options include items that impact how the home is built. Examples include whether you would like to turn a study into an extra bedroom, add a rear deck, or other changes to the home’s layout. If you are purchasing a custom-built home, you will likely have more options to choose from than if you are purchasing a production home. These decisions need to be made early in the construction process.
Finishes refer to items that are the finishing touches of the home –cabinets, countertops, faucets, lighting, and more. Decisions on finish options can be made later in the construction process. Mix and Match vs Packages Mix and Match: Custom home builders may offer purchasers the option to select each individual option in the home or at least a wide variety of them. This is typically called mix and match as you can mix appliances, cabinetry or whatever you desire. F I N I S H O P T I
Builders may offer various packages, such as a standard kitchen package vs an upgrade kitchen package You would not get to choose the individual items in the package (refrigerator, dishwasher, oven, etc) but would select all the appliances as a group. This type of options process may be preferred by those who would like to make fewer decisions and is likely offered more often by production builders.
S P E C H O M E
Due to various factors, builders may begin the construction process on a home site before anyone has purchased it For example, if a builder is building a row of townhomes and all of the homes in the row have sold except for one, that home still needs to be built along with the others If that home gets built to completion without anyone purchasing it, it is often referred to as a “ spec home.” Spec homes are finished (or almost finished) homes that have a quick move-in timeframe.
D E S I G N S E L E C T I O N S
THE STUDIO IS WHERE INSPIRATION & COLLABORATION COME TO LIFE.
Builders typically have a variety of resources to help you in the options selection process While some builders may have a showroom, others may have model homes that feature various products. Visiting the showrooms and model homes is very useful for seeing color combinations and how the items will actually look in the home. Many builders will also have a dedicated staff member to help you with the selections process This person will offer guidance on selecting options for your lifestyle, what items do or do not go well together, pricing and more. If construction on your home has started prior to your entering into a contract, it may be too late to choose certain options. The options you will be able to select will vary depending on how far along your home is in the construction process For example, it may be too late to select structural options but you may still have time to select finish options Selecting options is time-sensitive as it could impact how quickly your home gets built. Be sure to stay in communication with your builder on the necessary timing for options meetings Between the time you select the options and the time they are put in the home, occasionally models may be discontinued and options may need to change Most builders will work to ensure a comparable product is selected and will notify you of any change If your builder does not have a designated design selections staff member, this is where I can come in and help guide you through the selections process entirely
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This will be your home for years to come so select the features that suit your lifestyle and represent your personal preferences Consider your present and future lifestyle: what are your activities, hobbies and entertaining style? Trends will come and go, so be sure to select items that appeal to you personally. And remember that neutrals never go out of style
03.
02.
While that extra bedroom or bath may sound great, be sure to check with your lender so you do not exceed your maximum loan qualification.
It may be easier to justify spending money on upgraded options if you think they will help you sell the home in the future Items such as upgraded kitchens, smart home technology and hardwood flooring are typically at the top of buyers’ wish list for a new home.
B U I L D I N G Q U O T E
To prevent any unwanted financial surprises, it’s very important to understand the different pieces that make up your estimate before you sign any documents or contracts At a high level, we ’ re going to explore what goes into a new home quote, and what to keep in mind as you compare estimates from different builders
relationship between rooms and design elements.
One of the main costs in your quote is the floor plan. Floorplans are scale drawings that illustrate the
By providing a visualization of how you’ll move through the space, they make it easier to plan functionality and allow you to work through potential layout challenges before the building begins. Other interior costs will be the finishes, hardware, lighting, flooring, closet shelving, etc. all the things that add the comfort of home to your new build. Mechanical components will also be included within these costs, like your plumbing, electric, and HVAC
E X T E R I O R C O S T S
This portion of the quote is made up of the costs for excavation, doors, windows, siding/brick, termite treatment, roofing, etc the foundation, protection, and shell of your new home.
There are also ‘exterior extras’ to consider like porches, patios, or septic When it comes to these additional details, it’s best to clearly communicate everything you ’ re envisioning without assuming anything. For example, most new construction contracts won’t include decks or high-end patios. So, if you want one, communicate that as early as possible.
U P G R A D E S
When building a new home, you’ll need to decide what features are worth the money now and what you’d rather save for future upgrades
Going with the most common or basic features may seem economical at first, but for maximum functionality, durability, and a healthy return on your investment, there are some upgrades you might consider during the build
Most notably, your kitchen and bathrooms are where you’ll spend a lot of time and are the spaces homebuyers focus on (if you decide to sell). Quality appliances and cabinets are usually more expensive to replace later and many bathroom renovations will require a sledgehammer.
Other examples of home upgrades include heated floors, a fireplace, crown molding, a finished basement, and landscaping
F I N A L I Z E & C O N T R A C T
P R I C I N G :
As you read your contract thoroughly – prior to signing – zero in on these components: For starters, your document will list how much you have agreed to pay for your home Make sure you understand what’s included and what may incur additional fees or expenses Understanding the fine print will help you avoid any hidden costs
Dates and deadlines are critical Setting this schedule of important dates helps to avoid delays or incomplete work. You’ll also need to lock down deadline dates Keep these marked on your calendar as a reminder.
P A Y M E N T S C H E D U L E :
You’ll need to pay your builder an earnest money deposit, along with subsequent payments as construction progresses. You’ll also need to decide on how payments will be made
M A T E R I A L S A N D C O N S T R U C T I O N :
Homebuyers need to have a good grasp on what will be used to construct their new home Getting this insight prior to ordering materials is your best bet to make sure you ’ re happy with the quality. It’ll be much harder to change orders once materials have been ordered, shipped, and used. T I M E F R A M E S :
B U I L D I N G B E G I N S
The pre-construction meeting is an important part of having your new home built and takes place after the contract is signed and before breaking ground. We know there are many important decisions that need to be made during a new home build, so the pre-construction meeting helps us ensure nothing was missed
By reviewing each major and minor design feature of your home to verify all aspects of your home build are aligned with what you envision your dream home to be.
BUILD PROCESS
S T A G E O N E
B U I L D E R O R I E N T A T I O N
When construction permits are received and your home is released to start, your builder’s superintendent assigned to your project should contact you by phone:
- Introduce themselves and provide you with their contact info
- Discuss your home plan and specifications
- Give you details about the construction process
S T A G E T W O
F O U N D A T I O N
Foundations start with a professionally engineered foundation inspected by the Field Manager and local municipality to ensure strength and peak performance.
- Homesite prepared for construction
- Footer/foundation built
- Rough plumbing installed
- Slab poured
-Block walls constructed
Many inspections occur during this stage, to ensure your home is being built to South Carolina or Georgia’s building codes as well as your builder’s and my quality standards, as your dedicated Design Professional
S T A G E T H R E E
F R A M I N G
Industry-leading construction techniques are used to create each home
- Roof installed
- Interior walls framed
- Everything inside the walls is installed and inspectedElectrical, HVAC, insulation, etc.
S T A G E F O U R
R O U G H I N M E
H A N I C L E S
All mechanicals, which include plumbing, heating, cooling, and electrical, will be roughed in following the completion of the framing stage. “Rough-In” consists of supply and drain lines for plumbing, wiring for electrical outlets and switches, and ductwork
S T A G E F I V E
I N S U L A T I O N & D R Y W A L L
Your builder’s construction techniques create framing that allows for optimal insulation. Once all mechanical inspections are completed, we will insulate the exterior walls Once the insulation is completed and inspected, the drywall will be hung. After the drywall is completed, insulation is scheduled.
- Drywall
- Driveway poured
Now the fun really begins! During this phase, all the choices you made during your selections meetings will come to life Trim and interior doors will be installed as well as all other interior woodwork throughout your home, including cabinets, countertops, and vanities Your walls and trim will be prepped and painted with your selected colors
- Plumbing and HVAC fixtures
- Flooring
- Landscaping and sod
- Paint touch-up
- Finishing touches
- Quality control checks
- Full cleaning
Your vision is almost reality-The look and feel of your custom home is nearly complete! After the painting is done, the hard surface flooring and carpet will be installed, in addition to the lighting and plumbing fixtures After all finishing touches are complete, your builder will perform a final cleaning of your new home.
Once your home is nearing completion, you will meet with your Construction Manager/Superintendent who will introduce you to your new home and discuss how to operate and care for many of the components Because your new home is a source of pride to both you and your builder, it’s important that your home meets a certain level of craftsmanship and standards of quality Start packing boxes moving day is just around the corner!
You finally made it to the finish line! You can now relax and enjoy making memories in your new home.
E N J O Y Y O U R N E W H O M E
You will be notified of your closing date approximately 30 days prior to your closing and will receive a closing checklist with helpful information and instructions. This letter will have contact information for the different utility companies you will need to contact in order to get service turned on in your name. You will have your closing at the title company office and all paperwork from your builder will already be there when you arrive at your closing An agent of the title company will walk you through the paperwork and give you the keys when all the signatures are completed.
DO STAY IN REGULAR COMMUNICATION WITH YOUR BUILDER DO COME PREPARED TO MEETINGS WITH ANY QUESTIONS
DON’T DELAY MEETINGS, WALKTHROUGHS, AND OPTIONS SELECTION AS IT COULD DELAY THE CONSTRUCTION TIMELINE
DON’T MAKE OTHER BIG PURCHASES (SUCH AS A NEW CAR) BEFORE YOU CLOSE ON YOUR HOME
DON’T CHANGE YOUR JOB BEFORE YOU CLOSE ON YOUR HOME
T H A N K Y O U
