· How can I make sure my home is built properly?
Bookmark this article and follow these ten easy steps to avoid many costly mistakes:
The author, Richard C. MacCrea designs homes for the mountains.
For a written proposal, including the cost of plans, make a free, no obligation appointment.
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You just love the mountains and want to live in your very own home here,
but you have many questions.
This article will help you find answers to many questions like:
· How can I make sure I can afford the house I want?
· How can I choose a good builder?
· How can I make sure the builder will build the house the way I want?
· Will I be able to build on my property and meet the strict septic tank codes
and the flood plane ordinances?
· Is the property too steep for my home and driveway?
1. Decide what kind of home you want.
Before choosing a property, imagine living in the mountains. What kind of home do you want to live in?
Cut out pictures you like from magazines and books: your favorite kitchen, the special trim you want,
that beautiful bathroom you love, or anything else that impresses you. A file of these will help everyone
understand what you want.
2. Set your budget.
Before you buy property, set your budget.
Don't put all that money into a property until you are sure you can afford to build the home you want.
Ask yourself, how much cash can I spend? How much can I borrow?
Banks and mortgage companies will prequalify you.
They look at your income and expenses to see how much you can afford for a house payment.
This information is needed to tell you how much you can borrow.
Usually this estimate is accurate, but some things (such as changing interest rates) can affect your budget.
It is wise to set aside part of your budget for the unexpected.
How much of your budget can be spent on building and how much on property?
Your realtor can show you recently built homes within your budget.
Knowing how much was spent on property, site work, and construction can help you set your budget.
3. Find your land.
Your realtor can help you find affordable land.
All realtors have a multiple listings book listing properties (in order of price)
for sale by all the realtors in your area. Look at the properties that are priced less than your budget.
Consider: On what kind of property will my house look best?
Do I like the privacy of lots of trees, or a clear view?
Will the property be suitable for me in the winter? (Snow melts faster off the south side of the mountains).
Will the road be too treacherous? Will the site be too windy? Is the location convenient?
What is the neighborhood like? Are all of the utilities I want available?
You may not find the perfect property, but if your are more specific,
your realtor can be more helpful in your search.
Make an offer with contingencies that 1) you get acceptable financing,
water, septic, and driving access, 2) the property passes a title search and survey, and
3) you are able to build your home on this lot. The purchase price is usually negotiable.
With this purchase offer you need to make a deposit.
This guarantees the seller that you will not back out as long as your terms and contingencies are met.
This deposit also shows the seller that your offer is serious.
Wait until you reach step (8) to close on the property.
4. Choose your designer.
Hiring a home designer to plan your home can be a protection.
Some local counties do not provide a full building inspection service.
How can you be sure your home will be built properly?
Including a good set of plans in your builder's contract can be a protection.
These plans can help your builder understand what you want. They can make his job easier.
Banks prefer good plans as well. Its always a good idea to put everything in writing.
Building homes in the mountains is more complicated:
Homes built on steep slopes with poor foundations may have severe settling;
due to poor design and construction some basements are always wet;
strict septic tank and flood plane regulations seriously limit some properties;
and some sites are too steep for building and driveway access.
You need a local designer familiar with this area.
If you order your plans from a magazine, they might not work on your mountain property.
Your designer should look at your property and give you some ideas.
Will your home fit on the property?
Where is the best home site to save the trees and still have a view?
How can the driveway be brought in?
Where will the septic go?
Your designer will look at your ideas and combine them into your special home.
First he will make a preliminary drawing. Tell him what you like and dislike.
This is the best time to make changes in the design.
A good designer will listen closely to understand what you want.
He will work on the preliminary design until you are happy with it.
5. Make sure your house is within budget.
Now take your preliminary drawing to a builder to see if your home is within your budget.
If not, your designer can modify the plan to meet your budget.
You can also get input from a decorator, cabinet designer, etc.
This is the best time to carefully think about your plan, your budget, and make adjustments.
Many wait until it is too late to discover they cannot afford their home.
When talking with the builder, don't forget to ask about the costs of septic, water, driveway, and landscaping.
6. Begin the final plans.
Now that your property and house are within your budget, your final plans can be drafted!
Your designer should make your plans are accurate and easy to read. The home should fit your needs.
It should blend in with your property and be as easy to build as possible.
The structure should be well designed with beams and columns properly placed.
Your home should be easy to sell if you should move.
Your plans can serve as a legal document, making sure you, your builder,
and his laborers understand what is expected.
7. Select your contractor.
Take the final plans to several good builders and ask for a complete proposal in writing.
He will appreciate a good set of plans to use in making this proposal.
Ask: How long will the construction take? How much will it cost?
Some builders quote low because they provide a very small budget for carpet, lighting,
plumbing, cabinets, landscaping, etc.
Check with suppliers to make sure these budgets are high enough for the quality you desire.
You need to know if the budget is sufficient before you sign the contract.
Make sure all your questions are answered.
If there is something in the contract you do not understand, a real estate attorney can help you.
Remember to have your plans included in the builder's contract.
Some builders prefer working on "cost plus" basis.
(He charges you whatever the project costs plus an additional percentage as his profit).
There are advantages and disadvantages to this method. A dishonest builder can hide extra costs
(such as materials for other jobs, tools, and unnecessary labor) increasing his "plus."
This method does not encourage the builder to be thrifty. But, one advantage to cost plus is that
you know what his profit is and how much everything costs. This can simplify your dealings with the builder,
especially if there are changes during construction.
The builder does not have to bid the project higher to cover unexpected problems.
If your builder is honest and thrifty, you could come out ahead with cost plus.
You also need to investigate each builder's reputation. Ask for references, customers and subcontractors.
Is the builder easy to work with and reliable? Does he pay his workers properly? Do they get along with him?
Does he have complaints registered with the Better Business Bureau, The Chamber of Commerce,
or area Builders' Associations? Taking time to choose a good builder can save you time and money
and help you to have a better home.
8. Arrange your financing.
You need to choose a lender now. Take your plans, building contract, and property papers to several lenders
to discuss your financing. You will also need to bring your financial papers, which may include several years
of income tax records, investment and insurance papers, bank statements, and debt statements.
There are two kinds of loans for your home: construction loan and mortgage.
The construction loan provides the money for the construction of your home.
The interest rate is higher than for a mortgage. You pay interest on only the money spent.
When the house is complete you get a mortgage to pay off the construction loan.
Each lender has different policies. Compare terms, interest rates, and loan fees.
Is there a limit on how long the bank will allow for construction? Will the builder be happy with the draw schedule?
(When a certain portion if the work is complete, the bank will pay the builder a portion, or draw, of the money).
Would you prefer the bank to check with you before paying a draw?
What kind of insurance does the bank require during construction? The bank will want a title search, survey,
and an appraisal to process the loan. These requirements protect you and the bank from an expensive mistake.
Now is the time to close on the purchase of your property. If you are financing this purchase,
the bank will help you. A good real estate attorney will make sure the property is clear of liens (previous debts)
and encumbrances (problems with the property lines). Title insurance will guarantee this.
9. Begin the construction.
First, your builder will pull the permits. Your builder coordinates many workers to build the home.
Some may be employees, but most will be subcontractors
(workers who are in business for themselves providing service to more than one builder).
Your builder also coordinates with suppliers to make sure everything is delivered when needed.
A good set of plans will make his job so much easier.
There are many stages in building a home. First the foundation will be built.
Steel reinforced concrete will keep your house well anchored. Next is framing, which includes floor joists,
wall studs, and roof trusses. Then the house is "dried in" by installing insulation, sheathing, roofing, windows,
and siding. Plumbing and electrical must be run. Wall and ceiling materials are installed. After this, the cabinets,
fixtures, and appliances are installed. The house is painted and flooring is laid. Seeing these changes is exciting!
A word of caution: No matter how carefully your home is planned and built,
you will wish you had done something differently. Don't expect perfection.
Good communication between builders and homeowners can avoid many problems.
Your builder knows you want to move in as soon as possible,
but his other customers are probably pressuring him too. Also, his subcontractors work for other builders.
Even the best builders occasionally miss deadlines,
but your builder should keep you informed of any problems and changes in schedule as they occur.
You can promote good relations by being understanding. This will result in a smooth project and a better home.
Be positive and enjoy it.
10. Close on the home.
When the construction is complete, you can obtain your final mortgage and pay off the construction loan.
The builder will know if the home should be inspected before you move in.
The bank may also require an inspection to make sure the home is completed to their standards.
If you are having serious problems with your builder and you feel you must take legal action,
you might want to talk to an attorney before moving in.
When these steps are completed you can move in to your new home! Congratulations, you did it!
New Homes I have Designed
Remodeling Projects I have Designed.
My Procedures for Designing and Planning
Richard C. MacCrea
Home Planner
Email Richard
P.O. Box 446, Murphy, North Carolina 28906-0446
(828) 837-5787
Other Pages on this Web Site
The Mountain Home Show, Home Page and Site Map (How to find what you're looking for)
Detailed information about the home show (For guests and exhibitors)
Articles (About designing, building and remodeling a mountain home)
The Mountain Model Home (An experimental home that is extremely energy efficient)
The Mountain Model Cabin (A very small mountain cabin designed to sleep four comfortably)
Construction Diary (The joys and frustrations of building these two model homes)
Home Designing and Planning (How to get great plans for building or remodeling your home)
Email Us (Questions about The Mountain Home Show or Your Mountain Home Project)
The Mountain Home Show, P.O. Box 446, Murphy, North Carolina 28906-0446
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