- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Building a house - looking for some advice
Posted on 12/17/14 at 7:52 pm
Posted on 12/17/14 at 7:52 pm
I've decided to build a house instead of buy one...
I'll be meeting with a bank to get a letter of prequalification first then meeting with a builder, no agent will be involved.
What all do I need to have in order to get the ball rolling on this? I've read that I should plan on making a deposit but I'm not sure how much it will be. I've read between 1% and 2% of the projected home value would be a good number to put down as a deposit. Does that sound about right?
Then I guess the next part of the equation is negotiation. It's a custom home builder and I understand they don't move a whole lot on prices. That being said, any advice for some of you who have built before?
I'll be meeting with a bank to get a letter of prequalification first then meeting with a builder, no agent will be involved.
What all do I need to have in order to get the ball rolling on this? I've read that I should plan on making a deposit but I'm not sure how much it will be. I've read between 1% and 2% of the projected home value would be a good number to put down as a deposit. Does that sound about right?
Then I guess the next part of the equation is negotiation. It's a custom home builder and I understand they don't move a whole lot on prices. That being said, any advice for some of you who have built before?
3
Posted on 12/17/14 at 8:15 pm to Powerman
1). Own the lot or have enough to own the lot outright. If you don't have enough for that you should probably reconsider building.
2). Have a good set of plans. An architect is a good idea here. You will be asking the bank for a loan. Nothing is more ridiculous than someone asking for a loan though they don't even want to put up the money for the plans. Besides, you will need them to bid out to General Contractors so that you may obtain line items for the bank. The better the plans the better apples to apples comparison between builders cost you will have. The plans will also need to be appraised for the bank.
3). If you have already picked your builder and he knows he the only gc your taking a bid from naturally it will likely be higher.
4). Contract- Should define your payment schedule and their building schedule and an estimated completion date.
2). Have a good set of plans. An architect is a good idea here. You will be asking the bank for a loan. Nothing is more ridiculous than someone asking for a loan though they don't even want to put up the money for the plans. Besides, you will need them to bid out to General Contractors so that you may obtain line items for the bank. The better the plans the better apples to apples comparison between builders cost you will have. The plans will also need to be appraised for the bank.
3). If you have already picked your builder and he knows he the only gc your taking a bid from naturally it will likely be higher.
4). Contract- Should define your payment schedule and their building schedule and an estimated completion date.
Posted on 12/17/14 at 8:21 pm to MoreOrLes
The builder has the plans for the home already
Well technically I'm just seeing what I can get approved for. I'm not asking for a loan just yet.
quote:
You will be asking the bank for a loan. Nothing is more ridiculous than someone asking for a loan though they don't even want to put up the money for the plans
Well technically I'm just seeing what I can get approved for. I'm not asking for a loan just yet.
Posted on 12/17/14 at 10:23 pm to Powerman
Who's carrying the construction financing? You or the builder?
Posted on 12/18/14 at 7:01 am to LSUFanHouston
Do you already have a lot, or is the house going to be put on one of the builder's lots?
Posted on 12/18/14 at 8:15 am to guttata
quote:
Do you already have a lot, or is the house going to be put on one of the builder's lots?
One of the builder's lots
Still haven't picked out a lot yet...in the very early stages here
Builder builds in 4 different neighborhoods in town. I'll need to select an available lot and a plan that I want built and then move forward.
Posted on 12/18/14 at 8:44 am to Powerman
I'm going off of the little info you've provided, but here's my thoughts. These deals have a few pros and a lot of cons...
pros:
- usually get a decent price b/c the builder already knows exactly what it will cost and he should have eliminated construction waste
- also cheaper b/c the builder will keep you from over spending on the finishes.
- faster process than a true custom home b/c you aren't waiting on plans, bids, etc
cons:
- That's not really much of a 'custom' home. It's sounds like a tract home or at best a pre-sold spec (or custom spec).
- little room to negotiate anything, b/c the builder probably has many things already picked out for you.
- resale value can be lower if this is more like tract building. you may have a the same house built 5 doors down from you
- builder has all of the control and leverage which bring me to the next point...
- in my experience, builders in this situation will almost always cut every corner they think they can get away with. I'm not saying it will have structural issues, but you'll get cheaper finishes than you would normally choose for yourself.
Builders offer these deals b/c they can make very good money on them. Most buyers going this route have never built a house before and don't realize all of the 'builder grade' materials going into the house.
I've seen homeowners actually take a custom set of plans with a decent amount of detail and get bids that have a $80k variance from one another ($400-480k). This difference isn't really in the profit, but in the finishes. I built my house for about $110 sq ft. I could have built it for $90/ft or I could have spent $150/ft by only changing the details (type of windows/doors, flooring, plumbing & electrical fixtures, appliances, trim, ... the list goes on.
pros:
- usually get a decent price b/c the builder already knows exactly what it will cost and he should have eliminated construction waste
- also cheaper b/c the builder will keep you from over spending on the finishes.
- faster process than a true custom home b/c you aren't waiting on plans, bids, etc
cons:
- That's not really much of a 'custom' home. It's sounds like a tract home or at best a pre-sold spec (or custom spec).
- little room to negotiate anything, b/c the builder probably has many things already picked out for you.
- resale value can be lower if this is more like tract building. you may have a the same house built 5 doors down from you
- builder has all of the control and leverage which bring me to the next point...
- in my experience, builders in this situation will almost always cut every corner they think they can get away with. I'm not saying it will have structural issues, but you'll get cheaper finishes than you would normally choose for yourself.
Builders offer these deals b/c they can make very good money on them. Most buyers going this route have never built a house before and don't realize all of the 'builder grade' materials going into the house.
I've seen homeowners actually take a custom set of plans with a decent amount of detail and get bids that have a $80k variance from one another ($400-480k). This difference isn't really in the profit, but in the finishes. I built my house for about $110 sq ft. I could have built it for $90/ft or I could have spent $150/ft by only changing the details (type of windows/doors, flooring, plumbing & electrical fixtures, appliances, trim, ... the list goes on.
This post was edited on 12/18/14 at 8:55 am
Posted on 12/18/14 at 9:08 am to Powerman
You in Texas?
A friend of mine built a "custom" home in Richmond. When I think of custom, I think it means you get your plans drawn up by an architect, buy a lot, hire a GC, get a construction loan, and go to town.
Custom out there means basically a tract home in which you just get pre-approved for a loan and put down some deposit money plus option money. You just buy the house from the builder at closing. I guess what made it custom was that she had a lot more options to choose from than typical tract housing.
Not saying this is bad at all - this is an amazing 550K house. But, for the first six months I kept going over there and finding mistakes the builder made and telling her to call the builder to fix. For how much she spent on the house, I was surprised at some of the mistakes made.
A friend of mine built a "custom" home in Richmond. When I think of custom, I think it means you get your plans drawn up by an architect, buy a lot, hire a GC, get a construction loan, and go to town.
Custom out there means basically a tract home in which you just get pre-approved for a loan and put down some deposit money plus option money. You just buy the house from the builder at closing. I guess what made it custom was that she had a lot more options to choose from than typical tract housing.
Not saying this is bad at all - this is an amazing 550K house. But, for the first six months I kept going over there and finding mistakes the builder made and telling her to call the builder to fix. For how much she spent on the house, I was surprised at some of the mistakes made.
Posted on 12/18/14 at 9:16 am to LSUFanHouston
Agree with prev poster...are we really talking about custom here, or is this limited-choice, pre-sold spec? I did the first, my sister went with the second. For her, time was of the essence and she was in a rural area with few builders. I would not have been happy with the limited choices and was underwhelmed by the quality of her subs.
I prob paid $50/sq ft more than she did, but it was worth it to me (and it didn't price the house out of the neighborhood). I was on site every day and had the opportunity to review/critique everything as it happened. No surprises lurking, and my GC was happy to have me so involved. (Not every GC welcomes this.)
What do you know about construction? If nothing, then you need some assistance in picking out plans. Certain architectural styles and features will dramatically inflate costs. I actually picked out & spec'd down to the doorknobs on three different plans before I managed to find one that met my budget.
Back to your question about price: true custom contractors will give you an incredibly detailed, itemized breakdown of all phases of the construction. You'll have allowances for cabinets, flooring, fixtures, etc. If your builder is competent, your allowances will cover the materials you identify in the beginning...you'll know whether your budget includes $2.50/sq ft flooring or $8/sq ft flooring, so you can plan/pick out accordingly. The budget should include a contingency amount for unforseseen issues and clearly state the builder's fee.
Again, if you're not getting this level of detail, go find another contractor. Or accept that you are not getting true custom construction and can't specify exactly how you want things done.
I prob paid $50/sq ft more than she did, but it was worth it to me (and it didn't price the house out of the neighborhood). I was on site every day and had the opportunity to review/critique everything as it happened. No surprises lurking, and my GC was happy to have me so involved. (Not every GC welcomes this.)
What do you know about construction? If nothing, then you need some assistance in picking out plans. Certain architectural styles and features will dramatically inflate costs. I actually picked out & spec'd down to the doorknobs on three different plans before I managed to find one that met my budget.
Back to your question about price: true custom contractors will give you an incredibly detailed, itemized breakdown of all phases of the construction. You'll have allowances for cabinets, flooring, fixtures, etc. If your builder is competent, your allowances will cover the materials you identify in the beginning...you'll know whether your budget includes $2.50/sq ft flooring or $8/sq ft flooring, so you can plan/pick out accordingly. The budget should include a contingency amount for unforseseen issues and clearly state the builder's fee.
Again, if you're not getting this level of detail, go find another contractor. Or accept that you are not getting true custom construction and can't specify exactly how you want things done.
This post was edited on 12/18/14 at 9:21 am
Posted on 12/18/14 at 9:21 am to ashy larry
quote:
That's not really much of a 'custom' home. It's sounds like a tract home or at best a pre-sold spec (or custom spec).
My thought as well, and it's a bit of a pet peeve of mine. Not that there's anything wrong with this type of purchase, but the builder should call it what it is.
With that in mind, I would be clear with the builder beforehand on exactly what type of customization I was allowed. If I don't like where a closet is, can I change it? If I don't like the particular flooring being used, can I change it? Etc, etc. I've seen friends in similar deals where the only customization they were allowed was basically the paint on the walls and outside trim.
Posted on 12/18/14 at 9:38 am to ashy larry
quote:
That's not really much of a 'custom' home. It's sounds like a tract home or at best a pre-sold spec (or custom spec).
I know it sounds like that. They only build a few homes a year though.
I'm putting a lot of trust in my girlfriend here. She has been in the title industry for about a decade and is very familiar with the builders and this is the one she recommended.
Posted on 12/18/14 at 9:41 am to LSUFanHouston
quote:
Custom out there means basically a tract home in which you just get pre-approved for a loan and put down some deposit money plus option money. You just buy the house from the builder at closing. I guess what made it custom was that she had a lot more options to choose from than typical tract housing.
That sounds pretty similar to what this is
I'll learn more when I meet with the builder
Posted on 12/18/14 at 9:59 am to Powerman
Good luck. Something we did when our friend was doing this, was before she signed an agreement, we found two other neighborhoods where this particular builder had built. We found a few houses he did, some about 2 years old and some about 5 years old. We just walked up to the front door and talked to a few of the owners. They gave us good recommendations, so she went with it.
Posted on 12/18/14 at 10:16 am to Powerman
Our builder wanted $5000 on a $375k house, so 1-2% is about right.
We had a budget to hit the $375k. So much for flooring, so much for appliances, lighting, etc. We went under on flooring and over on lighting. When all was said and done, we ended up just over budget (I think about $381k) and because we weren't assholes through the process, the builder came down to budget and we closed.
My advice: Shop around. We bought all of our appliances on elite appliances.com, saved about $2000. They offer free shipping. We also saved about $6000 by going to Memphis to get flooring. (I rented a U-haul)
To some people its not worth the trouble. But we ended up with a great house that we really enjoy.
Here are the things I did that didn't cost a lot more during the building process that are wow factors.
Walk through shower.
Nest thermostats and smoke detectors
LINK
Instead light switches in living and master bedrooms and main hallway, as well as garage control. (Cost about $250 and I can control lights from my iPhone in the main areas - I also have dim settings in the living rooms for movies and stuff)
LINK
We were in the parade of homes and we had three realtors call us and ask us about the Nest and Insteon stuff. Very simple and less than $500 difference.
Oh, and we also decided to do a tankless water heating system. Its awesome. Always have hot water even with teenagers in the house.
We had a budget to hit the $375k. So much for flooring, so much for appliances, lighting, etc. We went under on flooring and over on lighting. When all was said and done, we ended up just over budget (I think about $381k) and because we weren't assholes through the process, the builder came down to budget and we closed.
My advice: Shop around. We bought all of our appliances on elite appliances.com, saved about $2000. They offer free shipping. We also saved about $6000 by going to Memphis to get flooring. (I rented a U-haul)
To some people its not worth the trouble. But we ended up with a great house that we really enjoy.
Here are the things I did that didn't cost a lot more during the building process that are wow factors.
Walk through shower.
Nest thermostats and smoke detectors
LINK
Instead light switches in living and master bedrooms and main hallway, as well as garage control. (Cost about $250 and I can control lights from my iPhone in the main areas - I also have dim settings in the living rooms for movies and stuff)
LINK
We were in the parade of homes and we had three realtors call us and ask us about the Nest and Insteon stuff. Very simple and less than $500 difference.
Oh, and we also decided to do a tankless water heating system. Its awesome. Always have hot water even with teenagers in the house.
This post was edited on 12/18/14 at 10:25 am
Posted on 12/18/14 at 10:19 am to LSUFanHouston
Yeah. I still have a lot to learn about what exactly it is they offer.
He sent me a sample plan that would be in my budget but I think they build anything you want
He sent me a link to a website where you can purchase architectural plans that they will build. It's pretty overwhelming just how many plans they have there.
He sent me a sample plan that would be in my budget but I think they build anything you want
He sent me a link to a website where you can purchase architectural plans that they will build. It's pretty overwhelming just how many plans they have there.
Posted on 12/18/14 at 11:03 am to Powerman
quote:
It's pretty overwhelming just how many plans they have there
Yes, it is. I probably looked at floor plans for 36 months, and still managed to rack up three false starts. I'm happy to share what I learned along the way.Time spent reviewing plans in detail and thinking about your living patterns is money saved in the long run.
It is tempting to shoot for larger square footage, but the best plan is the one suiting your lifestyle & activities (not necessarily the biggest one). When looking at plans, think about:
--how much time you spend outside, on a porch/patio, or in the backyard? Do you cook outside often? This can help you figure out whether you need a kitchen situated near the rear of the house with backyard/patio access, or whether you'd benefit from a half-bath close to the rear door. A well-situated interior kitchen and patio will save you the trouble of building an outdoor kitchen.
--what do you have to store? just clothes, or lots of hobby equipment, art supplies, power tools, hunting or ski clothes, or 1,001 pieces of scrapbooking paraphernalia? When looking at plans, consider carefully all of the closets & storage areas. This is such a big factor in whether your home "feels" large enough. A big house can feel small quickly, if the storage space is insufficient or inaccessible.
--how much time do you spend in the kitchen? If you are a serious cook, the very popular open floor plans may not suit your needs; a big/messy/multi-day kitchen project can take over your entire living space.
--do you really want/need a formal dining room? Most plans incorporate a formal dining room. If you only use the dining room 2-3 times a year, look for plans with an oversized, eat-in kitchen, and the dining room can be repurposed as a sitting room.
--can the house function for older adults? overall, the US population is aging. you may sell the house before you hit your senior years, but the potential market will include LOTS of gray-hairs (or your elderly relatives may come to live with you). Think twice about 2-story plans. Consider extra wide doorways that can accomodate walkers/wheelchairs. Avoid unneeded level changes on the interior. Opt for at least one walk-in or very low threshhold shower in the house.
--If possible, go for oversized garage spaces. I live in an upscale area, and you would not believe the number of homeowners whose two SUVs don't fit in their double garages. A few extra feet in width and length makes a big difference.
Some of the currently trendy features (like built in lockers/landing spaces in a mudroom or entry, or oversized laundry rooms) may not make sense for you. Don't be swayed by the builder suggesting what's "popular".
Also, Houzz.com can be a big help. It is a keyword searchable compendium of interior & exterior decor photos.
Posted on 12/18/14 at 11:46 am to Powerman
Just built a house.
What specificity you want to know?
I was general contractor... Hired a builder to frame form and trim out.
I hired rest of my subs.
Flooring
Elect
Roofers
Plumbers
Painters
Sheetrock
Concrete
Landscaping
Bricks
Stucco
Cabinets
Countertops granite
Started in first of June and moved in oct 10.
Went smoothly... I stayed on budget for the most part.
Bought all my appliances from lowes.
Got best they had of everything for 9k, wash dryer, double oven, gas range and fridge ...
Splurged on couple things .
Kitchen sink wife wanted was over 2k... Bought a custom farm house dining room table.
We did stained scored concrete and porcelain wood grain floors throughout... Look great.
Did a custom doorless shower in master bath.
Like i said our house went great.
It's 4500 sq ft / 3300 heated and I'm in for 350.
I saved 40-50k doing gen contracting and shopping around.
Luckily I had time to devote to it... Most people don't.
We went online and used Michael Campbell designs for plans and yes ...houzz app is very helpful.
What specificity you want to know?
I was general contractor... Hired a builder to frame form and trim out.
I hired rest of my subs.
Flooring
Elect
Roofers
Plumbers
Painters
Sheetrock
Concrete
Landscaping
Bricks
Stucco
Cabinets
Countertops granite
Started in first of June and moved in oct 10.
Went smoothly... I stayed on budget for the most part.
Bought all my appliances from lowes.
Got best they had of everything for 9k, wash dryer, double oven, gas range and fridge ...
Splurged on couple things .
Kitchen sink wife wanted was over 2k... Bought a custom farm house dining room table.
We did stained scored concrete and porcelain wood grain floors throughout... Look great.
Did a custom doorless shower in master bath.
Like i said our house went great.
It's 4500 sq ft / 3300 heated and I'm in for 350.
I saved 40-50k doing gen contracting and shopping around.
Luckily I had time to devote to it... Most people don't.
We went online and used Michael Campbell designs for plans and yes ...houzz app is very helpful.
This post was edited on 12/18/14 at 11:53 am
Posted on 12/18/14 at 12:43 pm to TIGRLEE
That damn Houzz app can be extremely dangerous if your wife gets a hold of it. I'm almost finished my house and it has been a very long and tedious 2 year process (from the start of looking at plans). I really just want it to be over with at this point. There is a lot of great information already posted in this thread
This post was edited on 12/18/14 at 12:44 pm
Posted on 12/18/14 at 1:02 pm to TIGRLEE
quote:
What specificity you want to know?
I suppose I'm just looking to see some potential pitfalls of mistakes to avoid during the process that could be very costly.
I'm not looking for a particularly large house as it's just going to be me living there. The places I'm looking at are 3BR and about 1800 sq ft
I'm more interested in the quality than the size. He claims he can build me a place with really nice finishings in the 235 range. I'm willing to spend up to 260K but I'm not about to advertise that.
Posted on 12/18/14 at 1:16 pm to anc
quote:
Nest thermostats and smoke detectors
I was definitely planning on going with those or some other smart thermostats
quote:
Here are the things I did that didn't cost a lot more during the building process that are wow factors. Walk through shower.
I find it difficult to believe that didn't cost that much
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News