Great news! You’ve decided to have your dream home built. But now what? Here are few considerations to help you avoid headaches, hidden costs and keep everything on track and running smoothly.
1. First Define Your Needs
Evaluate the type or types of home you are looking for, your price range and personal style. Keep in mind that some builders construct a broad range of homes and others specialize in specific types. You want to find the perfect fit to match your needs.
2. Do Your Homework
Obviously finding a reputable builder is priority number one, but remember that not all builders advertise. Some often rely on word-of- mouth and referrals for business. Ask your friends, family and co-workers who have recently purchased a new home or had one built for any recommendations. You also can check with your local chapter of the National Association of Home Builders. They can provide a list of experienced builders that produce quality work.
3. Shop Around
When visiting display homes, remember that not all homes are created equal. Don’t be fooled by the cheapest estimate, make sure you are making direct comparisons when possible from multiple builders. Look for quality and value. You should also be on the lookout for builder promotions that offer big discounts and even bonus inclusions such as an office or den.
4. Ask for a fixed price
You will want to avoid contracts with long lists of estimates and to be announced or to be determined pricing. Ensuring that you have information about every cost will help you avoid ending up with sky-rocketed price. Also, keep an eye out for suspicious clauses such as “pending test.”
5. Develop a Well-Written Contract
Communication is key to success. Disputes between parties often arise due to issues that the contract didn’t adequately address. A critical tool in reducing liability and future friction is a well-written contract that is a product of parties’ negotiations, describes in great detail the rights and obligations of each party and fairly allocates the risks inherent in the project.