What to Know Prior to Building your New Home

Created by: Federica Chacón
Date: May/09/2022

Building a new home is an exciting and elaborate experience that can take years before the foundations are even poured. Knowing a few things before you get started can ensure that the construction process, if handled correctly, is a straightforward one and, therefore, more efficient and cost-effective. Here are three key points we should know before starting:

1. Budgeting

Budgeting is the first step and one of the most important ones in determining how the rest of the process will play out. To start out right, you have to choose a pretty realistic estimate of how much you are willing to spend on the project. Then, with that information, you can start making your way to banks to check out which loans you qualify for, which will further clarify the budget for the house.

While at this, you should also start researching costs for the land or lot where you want to build your new house. Also, search for the house plan design that suits your needs, lifestyle and budget, contractors/subcontractors, and the finish materials. It is recommended you compare costs for different exterior and interior finish materials with various suppliers. Get bids from 3-5 contractors while checking their references. This is a good time to whip out a top-level excel sheet and start imputing all of the data to make educated and organized decisions. At this point, it's crucial to calculate overruns (nine out of ten projects experience cost overruns, according to market experts).

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2. Choosing the lot and the house plan

If you don't already have a lot or haven't started looking for it, talk with realtors to get a ballpark price in the areas you would like to live in and have singled out for your construction plan. After selecting a few to look at, it's key to investigate factors such as soil condition, drainage, building laws, etc.

With a lot in mind, it's time to choose a beautiful home design with the best house plan possible. One that fits your needs and lifestyle perfectly. You can either opt for a custom-made house design, which requires hiring an architect, or purchase a beautiful modern home design from a trusted source (check ours out here). Keep in mind that you are thinking long-term for either one of the two options, meaning the house plans selected must be able to accommodate possible changes in the future. For example, a home office can later be used as a guest room. It's also crucial to consider space planning while considering realistic space usage (mechanical room, deposits, closets, etc.)

3. Assemble your team and negotiate contracts

Your team should look something like this: a builder, an excavator, a surveyor, a home designer or an architect, etc. Counting on support from a home designer or an architect while building your new home is always an excellent resource. Once your construction team is in place, you must decide how you want to participate throughout the process. It is no easy feat, so providing clear, transparent, and on-time communication among all team members is vital. In addition, it reduces misunderstandings which might create construction delays and execution misses, as poor communication is the main reason for project failures.

In Summary

Almost everyone who owns a home invests enormous sums of money and risks large amounts of debt to own it. The effort, time, and money required to build a new home will undoubtedly be higher if the process is not handled correctly right from the start. But on the other hand, the reward will be immensely satisfying if the process is handled correctly... There is no better feeling than living in your dream home!

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