What to Know Before Building a House

14 Things to Know BEFORE Building a Home

Being a aware of everything from your builder's quality to the neighborhood will help you make better and more informed decisions while buying your home. 

1. What is the Local Public Opinion of the Builder?

Public opinion of a builder will be very important when it comes time to sell your home. If you buy from a builder who has a negative public opinion, you are likely going to have trouble selling your home when the time comes. If you’re from out of the area, ask a local Realtor who can offer insight on local opinion. How people feel about a particular builder in your hometown may be completely different than how they feel in the place you’re moving.

2. Does the Builder Build a Quality Product?

You’ll want to do some research on the builder’s quality of construction. The more well built a home is, the less maintenance you’ll have to do and the more you’ll enjoy living in your home. Ask the builder to tell you about the quality of their construction and how it compares to city code. (Remember meeting the city code should be the minimum requirement.) Also, compare this builder’s construction to other builders.

3. Do You Understand Your Cancellation Clauses?

Make sure to understand your right to cancel (if there are any) and how the cancellation process works. This is especially important if you are building a home contingent on the sale of your current home. If you don’t follow the rules, you could be stuck losing your deposit.

4. What Upgrades Can you Install After the Home is Built?

Upgrades are where builders get a lot of their profit. Ask yourself what upgrades you can install after your home is built. One of the big profit centers are outdoor kitchens. Ask the builder to put in the gas line on the patio and any other electrical or plumbing you would need. Then, hire a contractor to build out the rest.

You’ll want to make sure all of the electrical and plumbing you need is installed during construction. The rest you can do after building is complete for a lot less.

5. Will Your Lender Finance All Upgrades?

Some lenders won’t finance certain upgrades. Work with a knowledgeable lender who knows the loan program. Then, keep them informed at all stages of the process to protect against any unexpected surprises.

6. Will the Builder Allow You to Bring Your Own Inspector?

Ask the builder if they will allow you to bring in your own inspector at each stage of the building process. The inspector’s job is to look over the builder’s shoulder to make sure they are adhering to the construction standards they promised. A good builder should have no problem with a knowledgeable inspector checking their work.

7. How Long Will this Home Suit Your Needs?

Time makes money in real estate, not timing. The longer you’ll be able to comfortably live in a home, the higher likelihood you’ll have equity when you sell. Try to anticipate any family size changes, kids, older parents living with you and plan for it. Don’t just buy a home with exactly the number of bedrooms you need today. Give yourself room to grow into it.

8. Will My Current Living Situation Accommodate Construction Delays?

Try to get a reasonable estimate from the builder for total build time. Ask the builder if their build time includes a reasonable amount of time to select finishes and if it factors in a buffer for weather or supply delays. Give yourself some extra time with your current living situation to cover any other unexpected delays or make arrangements to stay with friends or relatives ahead of time. Buying a new home is stressful enough without compounding the problem with having to find temporary housing.

9. Will the Builder Allow You to Communicate with the Superintendent?

The Superintendent is the person who is in charge of overseeing the construction of your home. Ask the builder if they will allow you to communicate with your Superintendent during the build process. A good builder will put you in contact so they can coordinate the build process directly with you.

10. Does the Builder Provide a Warranty? What Does it Cover?

Get the details of the home warranty in writing, before you sign a contract. Know what it says and what it covers. New homes are not without problems and inevitably something will break. Know how long the builder covers the systems and components in the house and the process for getting something repaired.

11. Will the Builder Provide Local References?

Ask the builder if they have any current homeowners they could put you in contact with. Then, knock on a few doors and ask them about their experience with the builder. Explain you’re considering buying the neighborhood and wanted to know how they like it. You’d be surprised how much information you’ll get by simply asking neighbors.

12. Is There an HOA? If so, What Rules and Restrictions are Imposed?

The Homeowners Association (aka HOA) can impose rules and restrictions for homeowners for just about anything. Though the rules have their advantages in keeping neighborhoods uniform, some don’t like being told how they can use their property. Get a copy of the HOA’s rules and restrictions and honestly ask yourself i you can live by them.

13. What are Similar Homes in the Neighborhood Selling For?

Have your Realtor prepare a market analysis showing what homes in the neighborhood recently sold for. Are homes selling for around the same price as the builder’s inventory or is there a big difference in price? If so, why?

14. Will You Hire Your Own Realtor to Represent You?

Relying on the on-site sales agent to help you buy a home from a builder is a little like hiring the prosecutor to represent you in a lawsuit. The on-site salesperson’s job is to sell homes in this neighborhood from this builder. They aren’t going to tell you about the neighborhood down the street that has higher quality homes in a better school district for less money. Nor are they going to tell you about the high profit margins in upgrades. As much as they try to say they are on your side, they have a fiduciary duty to get the builder the most money for their homes. Not help you buy it right.

You can call or email us anytime so we can help you answer all these questions about your current situation and plans. Find out more about us at http://buildingahomeinutah.com/#/home/