5 QUESTIONS TO ASK WHEN BUILDING A CUSTOM HOME
With inventory at an all-time low, we have seen an upswing in interest in the custom home building space. In 2021 we will have more clients close on custom & semi-custom projects than those in "box" build here at Opal House & our expertise has given us a unique perspective on how to navigate this process. Before you dive in on a custom project home build, there are a few key points of understanding you will want addressed & questions answered that should help you determine who the right choice will be in your custom home builder.
1. Does the lot come first? or Does the Builder?
This is a personal question in some cases. If you are considering a custom build due to an architect or a builder that you have fallen in love with their style or design, the location or lot may not be your primary concern. That builder may or may not have lot's already available for building on & discussing their availability & preference will be where you begin. If that is not the case, you may be interested in purchasing your lot first & then bringing a builder of your own choice to complete the project.
2. Will I be financing the build costs or does my builder carry the construction loan?
Building a custom home & building a home with a box builder are not the same process. Where a box builder carries the majority of the financing obligations up to the close of a build project, custom builders may require you to obtain your own means of financing. The process of securing a construction loan has responsibilities & liabilities that are exclusive to custom projects & you will need to partner with your builder & lender to see what options you have and who will be financing the project. It's a good idea to decide how you want this process handled prior to any land purchases to ensure you understand the qualification requirements of your loan & how the financing process works.
3. How are building costs calculated? How are they disclosed?
Not all builders have the same structure of cost analysis. It is important to discuss how you will be informed of the costs associated with your custom build, how you will be informed of any material, labor, professional fees, etc. Also, it is important you understand how the design selection process is handled. What if I can find materials or selections I would like in my custom home for a discount? Will the builder allow me to purchase my own material? Questions such as these often create confusion if not clarified early on.
4. What tools are your architects/designers/planners using to ensure the build goes smoothly & the vision is cohesive from design to application?
Two words. Expectations & Communication. Building a home is a very LARGE scale project. There are many moving parts & it can be a task to ensure all of the parties who need to be in the know, are in the know. Vetting your builder to ensure they have the tools & people necessary to bring your vision to life is an essential piece to the success of your custom home build.
5. What representation is included/allowed/needed?
The long & short of building a custom home - get yourself some representation. If you think it's expensive hiring a professional to represent your interests while building a home, wait until you don't... On another note, if you struggle with design & creating a space that feels balanced & whole, does the builder employ an interior designer that can assist you in achieving that goal? If not, do they allow you to partner with an interior designer that specializes in that line of work & hire them as an independent contractor?
