Author: alien

How Much Does a New Home Really Cost?

Posted on August 10, 2021 by alien - Real Estate

Buying a new home in the US, especially in the suburbs, is an essential part of the American dream. It is a sign of financial stability and a ticket to the higher middle classes of society. Although buying a new home brings a lot of joy and happiness to new owners, it is hard to come by, and even when it does, it happens at quite a hefty price. Apart from the price of the house, other expenses resulting from renovations and repairs also add to the actual cost.

Average Home Price In The US

Home prices in the US have always been on the higher end of the scale. According to a report from Zillow, home prices in the US have hit upwards of $293,349 as of June 2021, which is 13.2% higher than the price 12 months ago. The joint report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (PDF) stated the average sales price of new houses sold in June 2021 was $428,700, and the median sales price was $361,800.

Reasons For The Price Hike

There are multiple reasons for the price hike, with the pandemic being the main cause behind the factors. Here is a list of the factors that have caused the increase in the price hike.

Price Hike In Softwood Lumber

During the pandemic, softwood lumber prices spiked by more than an astonishing 300%. Although the prices have radically fallen in the last month, they still stand around 75% higher than the average rate in 2019.

High Demand For New Homes

The pandemic has caused many people, especially city dwellers, to move to the suburbs. Moreover, millennials, who make up the largest group of generations, have entered the home buying years. This has caused high demand in the housing market, raising prices. Even homes that need major repairs and fixes are also high in demand due to the lack of available homes.

Shortage Of Resources

Besides the above-stated reasons, shortages of appliances, human labor, and affordable lots have all contributed to the price hikes in homes. The Pandemic is to be blamed again for the cause, as social restrictions and low productivity rates lead to these factors.

Cities With The Highest Prices

According to Insurify, San Jose, California, has the highest average home sale price of $1,068,398. The next four cities in the pecking order are San Francisco, Los Angeles-Long Beach-Anaheim, Ventura, and San Diego, all located in California, ranging from almost $600,000 to $811,800. According to CNBC, the 20 cities with the highest average home-sale prices reported a 17% increase in year-over-year value. Among these cities, Phoenix, San Diego, and Seattle reported the highest year-over-year gains – 25.9%, 24.7%, and 23.4%, respectively.

How Much Do Homes Really Cost?

Despite the record-high prices shown above, the actual cost of homes can tend to be much higher for US audiences. This is because many unlisted expenses go along with the listed price of the homes arising from mortgages and repairs. For example, fixer-upper homes that need major repairs can cost an extra 10% or more of the listed house price. This percentage increases or decreases depending on the house condition and the spending power of the new homeowners.

Furthermore, high mortgage rates can significantly increase the price of houses. The most popular 30-year fixed mortgage has an average annual interest rate of 2.98%. This may not seem like much, but it doubles the price of the house by the end of the payment. Thus, certain factors like these have to be kept in mind while buying a new home. For example, a family home in the suburbs with a listed price of $555,000 would cost around $1,051,170 at the end of the 30-year fixed mortgage. This excludes the cost of repairs and renovations at the time of purchase.

Of course, you can neglect this amount if you pay the full amount up-front, but that is not often the case. Most people from the US audience opt for fixed mortgages ranging over different years. Credit debts and high living expenses restrict people from paying full amounts for homes at the time of purchase. The U.S. is one of the most expensive countries to live in, and it is often ranked at the top when it comes to high real-estate prices.

Conclusion

In conclusion, buying a new home is one of the best experiences in life. It brings happiness and satisfaction to your life, especially after all the hard work you spend earning money.

Purchasing a house, as we have seen, is quite expensive with many hidden extra expenses. Moreover, maintaining a home and other financial expenses can become a burden in no time. This is why it makes sense to weigh your options well and choose the right builder for this important phase of your life. Contact us today to learn more.

First Time Home Buyers in Rio Grande Valley, Texas

Posted on January 13, 2021 by alien - Custom Home Construction

A home in the Rio Grande Valley is not just a financial investment. Your very first home is where your dreams meet reality. And to make this reality sweeter, there are a few things a first time homebuyer in Rio Grande valley must consider. Mortgage, closing costs, and room for home improvements are the common concerns along with the listed price of a house.

Whether you build a new house or buy an existing one in the Valley, take a deep breath and mull over a few things.

1. Are you ready for a new home?

You move into a new location. A portion of your earnings goes towards purchase and maintenance of this residence. And you spend a great many number of years within its walls. Is it worth it?

2. How much does the house cost? Can you meet the expenses?

Take a close look at your financial position. Do you have a steady day job? Are you willing to give up on a few comforts until you have the house? These are a few questions every first-time home buyer grapples with. Remember, housing costs do escalate.

3. How much of your salary goes into paying off your debts?

How much mortgage can you afford? Finding a mortgage that’s within reach can be a challenge. Experts say that if you earn $100, you are better off paying around $30 dollars as a loan. Anything higher is unsustainable. But you must make sure you’re getting your money’s worth with those $30.

4. What are your needs?

The types of neighborhood, local regulations, and the general atmosphere have some degree of impact on your living. Small things like mowing your own lawn yourself might seem like a chore to you but others might find it a pleasant pastime. So make an effort to know the people and the places before you make a choice.

It is easy to be snowed under with all the preparations. That’s why connecting with professional real estate groups could be of help. At Hosanna Construction we take the trouble out of house hunting so you can get the best out of a deal.

Here’s how we help a first time home buyer in Rio Grande Valley:

1. Real estate agent

We will connect you with reliable brokers. The agent will help you narrow down your needs and calculate the costs of ownership. Next they will share the details of important properties. They will help you look at the pros and cons of each property you visit. Our focus is simple: to get you your first home at the best possible price.

Our agents have spent years in the industry to know how it works and use this knowledge to your benefit.

2. Real estate lawyer

We have worked with trusted real estate lawyers who can detangle legal jargon. While hiring their services might set you back by a few hundred dollars, it is justified too. No one wants to deal with messy property disputes later. Those cost a lot more and waste a lot of time.

Real estate lawyers working with us can give you a comprehensive idea of the legalities involved in the buying process.

3. Bare necessities

We assist clients in identifying their needs and prioritizing them over luxuries. For example, a fully functional HVAC is slightly more necessary than a walk-in closet for some buyers. Since it is easy to get lost in the details, we help you see what you really need as well as what you want in the house.

4. Property inspection:

Have the property well inspected for rot and damage. A thorough check is best performed before purchase so that you are not burdened with chronic repairs. Leaky roofs, mold, faulty plumbing, defective wires, inefficient fixtures, or a bad case of mold can throw daily life off gear.

We would love to share recommendations about local property inspections with you.

5. Paperwork

We simplify the paperwork involved. After you have read through and assented to the proposals, we present it to the seller. And although they might counter it, we highlight the strongest points of your bid.

6. The Final walkthrough

We do the final walkthrough together, if you like, and make sure that all the terms of the final deal are met.

Hosanna Construction is there with you every step of the way – from the first look of the property to the final handing over of the keys. Get in touch with us today to ease the home buying process for the first time home buyer in the Rio Grande Valley.

10 Custom Home FAQs for First-Time Home Buyers

Posted on November 20, 2020 by alien - Custom Home Construction

A custom house is everything a production house isn’t. It has a personality; it boasts of genuine materials and fixtures and there are infinite customization options. No wonder prospective homeowners have lots of questions about it.

Below are the top 10 custom home FAQs that can point you in the right direction. Although by no means comprehensive, these are some of the most important ones:

1. What are custom built homes?

These are unique houses built around the specific layout and materials suggested by the client. A custom-built home reflects the architectural and functional preferences of the homeowner. For instance, if you need an extra cabinet built into the wall, you have the freedom to get it built. As opposed to pre-designed home, a made-to-order home lets you tweak the floor plan, external and interior design and many other aspects of homebuilding. These homes fully meet the needs of your family.

2. Are custom homes more expensive?

Typically, a customized residence tends to cost more than an average, pre-designed house because they bring in high degree of luxury and exclusivity in the design. But they also let you pay only for things you want. You can splurge on spas, oversized bedrooms, and eclectic accent lights or scale down into a double-storied rustic accommodation that is highly energy-efficient. Cutting down on extraneous elements, a personalized home helps you save money in the long run. You can select the perfect kitchen or a rooftop pool and fit everything into the budget. Professional custom home builders provide free estimates so you understand how the money will be spent.

3. Why build a custom home?

There is no way of knowing the exact condition of an existing home. You are never sure what supplies were used. Plus, you are stuck with the architecture. With a custom home, however, you can make it as structurally sound as you want. You can handpick construction materials and among other things, choose the best insulation. You can change the space planning as you please and leave room for future renovations because, as your family grows, your needs change. If you live in a house custom-fitted to your lifestyle, not only would you settle down faster but also potentially save a lot of money you’d have otherwise spent on repairs. Production houses can hardly be the home you dream of.

4. How much do custom homes cost?

The price depends on a lot of factors like location, design flexibility and so on. While it is true that with each addition to the plan the price leaps a little, it is equally true that you can find a home for $100,000. They become less expensive with time, removing the need for costly repairs later. Many homeowners agree that the upfront price of a custom house varies with the floor area. It can hover around $300,000 for a 1500 square feet house and rise to about $400,000 for 2000 square feet. A 2-bedroom house will be cheaper than a 4-bedroom home. House price also differs by state. Such a house in Texas might be available for $200,000 on an average. It is not difficult to find affordable houses in Texas if you can connect with the right builder.

5. Are custom homes worth it?

Custom homes are worth every penny. They are the closest thing to your dream home. True, you have to engage the services of a surveyor, a planner and a contractor. But this is money well spent. You are not only investing in the house you want to grow old in but also not wasting money on the upkeep of rentals or existing homes. All custom homes are not flashy. They are just what you need them to be.

6. Is it better to buy or build custom?

Buying an existing house is easier. You can hire an agent and visit houses till you find one. It is cheaper too.

Building custom has its own benefits. You are aware of every small step in the process and can aim for complete home automation in the future. Such possibilities of upgrade are few and far in between with older homes. New homes come with a warranty on structures, finishes or doors and windows – something that is lacking in an existing home. Plus there’s this overwhelming attachment that owners feel with the freshness of a brand-new residence.

7. How long should you wait before taking possession of the house?

Construction times vary and may get stalled for many reasons. Expect anything between a year and 18 months as a standard. But the benefit of working with reputed custom builders is they would share a timeline or a building schedule with you. This helps keep track of their operations and plan your other activities around it. That way you won’t have to repeatedly postpone or move around your other engagements.

There are many professionals engaged; there are many steps involved. This is not to say that custom homes are not delivered on time. Contractors usually include a date of delivery in the final contract and issue a warranty on it. Local builders should be able to tell you about the most favorable time to start building.

8. How to choose a custom home builder?

One of the most useful ways of choosing a builder is to ask for references from friends and family. If existing clients are satisfied with the homes they have received, you can assume the builder is reliable. Check local contractors and visit their houses to gauge if they are a fit. A reputed builder will bring trust and quality to the table.

Find out more about their network of subcontractors and highly-placed sources. Better to find out any unpleasant events before signing the home purchase contract.

9. Does a custom home builder help with the financing?

These builders work with a successful team of planners, architects, suppliers and financiers. The entire process is streamlined with in-house mortgage experts checking your eligibility. Not only can they help you get approved for loans faster, but also get you special loan rates and repayment windows. Once this hurdle is out of the way, you can confidently move forward with the construction.

You can also get help about down payment options, often saving thousands of dollars on loans.

10. Is site selection part of house building?

Not all who dream of building their own house possess a piece of land. If you are one of them, consult with your builder to find a plot at once. Decide on the location and what amenities you need nearby. Once that is settled, look for a suitable lot. Here a local builder’s knowledge shines through as they can give you valuable inputs on the weather, the condition of roads and traffic, overall connectivity, safety and its distance from facilities likes schools, hospitals and the like.

So, although the service is provided by some builders, the cost of buying the plot is not borne by them. Your budget must have room for a new piece of land.

Building a custom house is at once intimidating and thrilling. There are many builders in the Rio Grande Valley that can fulfill your desire of a unique home. Ask them for free estimates and request visits to their recent construction sites. A genuine builder would never refuse. Hence a custom home is the permanent answer to all your housing concerns in the Valley.

If you are looking to buy a home in Pharr, Mission, Edinburg, or anywhere in the Rio Grande Valley, contact us to talk about your property and get the best deal available.

How to Buy a Home in the Rio Grande Valley

Posted on October 12, 2020 by alien - Rio Grande Valley

Buying a home in the Rio Grande Valley requires homeowners to do three essential things:

Understand your needs,
Research the market, and
Get your finances in order.

It is easy to fall in love with the warm of the South Texas valley and decide to call it home. And yet there are a hundred things you need to check before making your first payment on the house.

Because buying a home can be time-consuming and confusing, especially for first-time owners. So here are some of the critical things to consider before purchasing a home in the Rio Grande Valley:

What does your dream home look like?

Zeroing in on the right combination of style and functionality is a challenge best tackled first on paper.

How many bedrooms do you want in the house? How big should the kitchen be? Does a walk-in closet strike your fancy? What about energy savings? How would you like to integrate future expansions or alternations within the structure? These are some of the common questions that homeowners grapple with. You can only start looking for a good fit once you have most of the answers. A house that matches your space and design preferences would be the best investment.

Another aspect to consider is whether you are buying an old house or building a new one. An existing structure could be cheaper, albeit a bit risky. If you build a new one, you could sleep well, knowing that the builder gave you the best materials and price.

Where do you want to live?

Usually, a well-connected neighborhood is the most preferred choice. Proximity to schools and shopping centers is paramount. Ease of commute and a safe environment are the most asked about features of a locality. All in all, the neighborhood you choose to live in will be crucial in dictating your future lifestyle.

You could get in touch with RGV home builders or real estate agents in the valley to help you find a suitable locality.

How much would the house cost?

Anything you want included in the house will cost you money. The building material you choose or the fixtures you need are some of the things that affect your budget. Add to it the different fees related to taxes, registration and so on. Besides, house prices change, and budgets tend to exceed their limits. You will need to set aside some funds. Hence a big part of your savings will go into this project.

Mortgage calculation could help you find out how much you are likely to spend. And how much you would be left with. Banks ask for a reliable credit score to grant you loans. Some of these loans have fixed interest rates and a set pattern of payment. Others offer more flexibility. Long-term repayment choices are stretching over 15, 20 or 25 years.

Homeowners usually choose a loan plan that fits their investment goals. If you don’t seem to be eligible right away, take a little time to get your finances in order. Affordability issues can make severe dents in your dream.

Who will build your house?

Finding the right builder is as important as finding the right locality. It is best to search for licensed and certified builders who have years of experience. Having the proper permits is essential too. Reputed builders most likely will have the financial backing and highly-placed connections. It will ensure the successful completion of your home building project.

You can ask to visit finished homes and talk to their existing clients before you sign the contract.

What can a model home tour do for you?

The model home is a reflection of what the builder has to offer. It is where their plans and designs come to life. After you have shortlisted a few houses, set up a date with the property, when touring the new site or the model house, make sure to make mental notes.

Buyers should take this tour seriously and ask the builder for their inputs on the property. Compare the pros and cons of all the houses you visit so you can make an educated choice. Talk to your builder to dispel any doubts you might have.

House inspection, when done by a professional, can open your eyes to many aspects of homebuilding. It may be unknown to you. So, first-timers should select a home inspector to check the condition of the house.

What paperwork do you need?

While making a move on the house, you need to be sure that your paperwork is also well arranged. Banks ask for several documents before releasing the loan amount. These include tax receipts, account statements, payment proofs and related documents. You may also need homeowners insurance. While compulsory, it can safeguard your investment from natural disasters—fire, flood, and storms, to name a few. Also, getting approval is not complicated if your documents are ready.

What to consider while making an offer?

At one point you would be making an offer on the house. Although prices are open to a bit of bargaining, you must ensure that you’re getting your money’s worth. Consider the average property prices in the neighborhood against what your builder asks.

Offers and counter-offers are made before both parties reach an agreement. But make sure that the quality of your house is not compromised. Raw materials, paint, finishes, and fixtures can make a massive difference in the final price. Expect to shell out more for premium materials and greater customization.

What happens on closing day?

Finally, after all the stress, the closing day arrives. You make the balance payment on the house and the realtor hands over the keys. Don’t forget to receive the purchase papers from them. That’s it. Your home-hunting trip is over.

To enjoy the benefits of a well-made house, connect with an expert builder who cares for your needs and offers the industry experience to make it a reality.

If you are looking to buy a home in Pharr, Mission, Edinburg, or anywhere in the Rio Grande Valley, contact us to talk about your property and get the best deal available.

Is it Better to Rent, Buy, or Build a New Home?

Posted on September 22, 2020 by alien - Home ownership

Is it better to rent, buy or build a home?

Home ownership is a dream best realized slowly. And it is not only about getting your finances in order. Knowing where to invest in the Texas real estate market is the real deal. So is it better to rent a home or buy it? Why not build it with full customization?

We take a look at the pros and cons of each option below:

Renting a house

Renting seems to be the go-to option if your stay in the city is going to be a short one. Or if you are still testing the waters. On average, the monthly rent goes well above a thousand dollars and you still have to grapple with deposits and insurances. Besides, there are just not enough options to personalize the rooms. This is not to say that you can’t live a content life in your rented house. If you do not need specific amenities or hardly spend time indoors, renting could be a useful choice.

But on a yearly basis, it is difficult to argue with the sound financial decision of building a home. The rent is still an expense instead of an investment.

Buying a home

There are certain things about an existing home that you may find attractive. For example, the fact that it is still standing. The right construction materials give a house its enduring strength and a sturdy older home is a proof of quality. And yet, there could be telltale signs of wear and tear. Dated heating and ventilation, aging walls and chipped off flooring usually get in the way of comfortable living. There may be spaces you don’t need. For example, a chic basement that serves no purpose in your life.

An existing home in Texas can inflate your maintenance bills regularly. Granted, the upfront costs are lower compared to a new house but the cash keeps on leaking in upgrades. You are either upgrading energy efficiency or giving the walls a fresh coat of paint. However, on the upside, buyers can cut a lucrative deal if they follow the price changes of the property and make an offer when it is comfortably within their budget.

Building a new home

House-building comes with its share of unique challenges. You are likely to overstep your budget or have the delivery deadline pushed back indefinitely due to unforeseen events. So why opt for building a home from scratch? Because it gives you a great deal of control over every aspect of construction, compliance, and return on investment.

It all starts with finding a builder who matches your expectations. They help with important things like site selection, floor plans, construction, and final occupancy. Whether rented or bought, an existing home may not remain sustainable in the long run. Mildew, lead paint, clogged pipes, and seepages usually refuse to leave older homes. It is here that a newly-built home scores higher. To get the most out of a newly-built house, get in touch with builders who carry the Built to Save certificate so you can keep your energy and upkeep changes low while doing your bit to save the environment.

One of the major attractions of building a house is you can get complete personalized spaces, in your choice of material and finishes. Not only that, but you also get to decide the number of rooms and their location in the house, the interiors, and the view. You can also build your house in the exact architectural style you prefer – Rustic, Mediterranean, Contemporary, or Modern. New home builders usually also factor in future space requirements when provisioning the area.

There is little doubt that building a home is a safe alternative to gambling with an existing one or even moving into a rented apartment. Construction companies of repute undertake site inspection on behalf of their clients and provide a quality assessment as regards its benefits and challenges.

So what homeowners may find helpful to remember are budget limits, timeframes, customizability, maintenance, and return on investment before they rent, buy, or build their own home.

Homeownership is a preferred way of creating wealth. Connect with us today for a newly-built home requires little upkeep, and lasts long. Let us help you build a house that reflects your style and needs and is made future-proof with a bit of strategic planning thrown in.

The State of Real Estate in South Texas

Posted on August 18, 2020 by alien - Real Estate

What to Expect from Real Estate in South Texas

The real estate market in South Texas bears the aftershocks of a pandemic. It has been further affected by recent international affairs, fluctuations in the economy, and a tense political situation at home.

However, this does not mean that investments in real estate have fallen beyond recovery. Before you jump at the first chance to pick a house, take a quick look at the real estate scene.

We have summarized the present state of real estate in South Texas in five prominent trends as you can see below:

1. A growing population in an uncertain job market

Unlike New York or San Francisco, the cities of South Texas are witnessing a steady rise in population. Encouraged by job creation, these areas are acquiring residents in thousands. For instance, the job market in McAllen has more than doubled.

This is a piece of comforting news for investors for more people means more housing opportunities to invest in. But two to three months into 2020 has the population grappling with cuts in salaries and a volatile local market. Looks like real estate might just be a bit slow to pick up, now that the second wave of the pandemic has crashed upon the state.

2. Affordable housing

In spite of being among the best performing real estate markets in the US for 5 years in a row, housing has still been affordable. House building has been at an all-time high with the state getting the maximum number of permits in 2019 alone.

This was a boon for home builders, renters, realtors, movers, and a host of related professions. In the present scenario, the market is, however, showing signs of deceleration, with more and more people opting out of investing in new homes. This is not to say that people are not buying properties. With the right builder, you can still cut a fitting deal in the valley.

3. Declining in property listings

In the post-pandemic world, few people are listing their homes for sale. South Texas is staring at a decline of around 2 percent per month in home sales. Covid-19 has further increased the number of houses pulled back from the market.

Many homeowners have been unable to include their homes into the sales channel, on the other hand. In addition, the demand for new homes has fallen. The trend is seen in both single-family house sales as well as multiple-family properties.

Customers are wary of visiting homes and this soft demand has led to a crash in sales figures. Virtual showings have gained traction but sellers do not seem to be in the mood to hold open houses. There is a general air of gloominess among both buyers and sellers.

4. The rising rate of employment and the threat of recession

Experts predict that the rate of joblessness might push the double digit mark if the economy continues to fall. At this rate, South Texas could see a surging wave of recession. With faltering cross-border commerce, areas like the Rio Grande Valley may be forced to accept a sharp decline in house prices.

It remains to be seen how long residents can cope with a lack of jobs since being without one directly affects their spending power. Even after businesses pick up, homeowners would still have to deal with heavy mortgages. In such a situation, owners might try to sell off their properties at whatever prices they can manage and that’s when prices might actually begin to plummet. Otherwise, property prices tend to swing within a fixed range.

5. The Effect of Covid-19

One of the biggest factors affecting real estate is public health. The extent of the pandemic is yet to be measured and it might have far-reaching consequences for homeownership. With social distancing and related protocols in place, the general mood is discouraging to builders and investors.

Yet, Texas house sales figures are better than the national average in spite of a sluggish market. The final deciding factor is jobs after the population recovers. How quickly and steadily trade picks up will determine the future of real estate in South Texas.

While everything seems to be going south, an experienced realtor and builder should be able to find the perfect home for you. Whether you want to rent or build, we can connect you with the right property in the market that fits in with your style and finances.

Refs:

https://www.recenter.tamu.edu/articles/technical-report/Texas-Housing-Insight

https://www.texastribune.org/2020/04/07/coronavirus-texas-cools-real-estate-market-experts-dont-know-how-long/

https://www.mashvisor.com/blog/texas-real-estate-market-2020/

5 Tough Questions to Ask When Hiring a Custom Home Builder

Posted on August 4, 2020 by alien - Custom Home Construction

Builder with stressed out look talking over the phone

You have decided to build a custom home – one that you have dreamt of, for a long time. But you may have some apprehensions and worries about how the project will go. There are so many nuances you need to take care of, and you may not be aware of most of them.

But rather than hesitating and mulling things over by yourself, ask your custom home builder about the things that are bugging you. A reputable builder will always be ready to answer their customers’ queries.

Here are 5 tough questions you should be asking your builder.

1) Can I have the specification sheets for the intended building materials you utilize for the construction?

Without leaving out any area of the home, ask the builder to be specific about the types of materials they plan to use for your project. From the plumbing materials to the roofing and flooring, ensure that they are using the highest quality materials. The materials do not have to be luxurious or expensive, but it is your right to know if you are getting your money’s worth.

By checking out some samples, you can get the feel of the material, and determine if they are right for your requirements. Also, you can learn about the specific warranties that come with some materials before making the purchase. For instance, some kitchen countertop brands have a 15 to 20-year limited warranty. And an honest builder will effectively communicate these details to you.

2) Can you give us a full list of references or past client testimonials?

You can ask for the builder’s portfolio to check out their past projects. Visit the locations and look around. You can also speak to the people currently residing in those homes to learn if there are any construction glitches. Ask about project timelines, budget, workmanship, and communication.

Alternatively, ask the builder to provide you with solid references. A good builder will be more than willing to showcase their best work. They may either provide photos or videos of the homes they built or if the owner permits, they can offer you a tour. For client testimonials, insist on having the references from their recent projects.

3) How involved are you during the entire construction process?

Most custom home builders work with an in-house design team or hire the professional on project-basis. They may also have a crew with specific skills and expertise to frequently engage in various home builds. Either way, it is the custom home builder’s responsibility to ensure smooth completion of the job.

Find out about their involvement in your project. Do they stay on the site from breaking ground to the finish? Do they have highly trustworthy subcontractors that offer efficient work? It is advisable to choose a builder who employs an insured crew that can deliver exceptional results with the utmost precision. They should be accessible to you from the design phase to the construction final stage and the follow-up.

4) How long would it take for completion of the construction?

It is always better to start the project with the end in mind. When you have a time estimate, it shows that the builder is realistic. However, remember that unforeseen delays can happen with any construction project. There could be shipping delays, health issues, adverse weather patterns, and other reasons. Barring these, ask the builder to give a reasonable time duration for the construction.

Having said the above, you should be prepared to wait because a custom home build is a lengthy process. Then again, the builder should not be too strict with the timelines as it could affect the quality of work. Be open in your communication, and get these questions answered and out of the way before you sign the contract.

5) Can you build a custom home within my budget?

Many things could go astray during the build, and shoot up the initial estimation. You and the construction company must stay on the same page. Make sure that you have a good rapport with the builder from the beginning of the construction. Tell them your budget limitations, and explain if you cannot make room for adjustments.

Avoid any sort of confusion to get what you want in your price bracket. Find a builder who does not resort to cutting corners to stay within the allotted budget. But we suggest that you do your research before choosing the construction materials as you have to think about the home’s resale value if you need to sell in the future.

Find out if they offer a warranty on the home, not just materials. Do they build in specific locations? If so, they know the local climate and soil. Other criteria to consider while hiring a custom builder is whether they are licensed and insured.

Top 7 Tips for Choosing a Custom Home Builder

Posted on July 27, 2020 by alien - Custom Home Construction

Home builder showing house plans to happy looking couple

Building your dream home may involve a couple more steps than purchasing an existing home. With an already constructed home, you may not have the chance to pick the builder, materials to use, and the design. But when you build a custom home, you have complete freedom in choosing every element that goes into the construction.

Before you sign on the dotted line, one of the essential considerations you must make during this process is choosing a custom home builder. Not any builder will do.

Here, we give you some useful tips to pick the right builder.

1. License and Certification

Many aspiring homeowners discover halfway through the construction process that their builder is unlicensed. It could have grave consequences if the project does not go the right way. And given the amount you are investing in the building, it is prudent that you check their license and registration.

One excellent method to pick a competent custom home builder is to get some references from your friends and family. You can also start your research at the local home builders association.

If you can gather information from your local real estate agent, that would help a great deal, too. Also, go on sites like Yelp or Google reviews and Facebook or other social media to find what people are saying about them.

2. Construction property

Customs homes are generally built on the property, belonging to the buyer. If your builder is showing you some half-built model home on their site, it is not a custom home. It may just be an off-the-shelf production home with a little room for customization. So, if you plan to build a 100% custom home, start it from scratch.

Besides, you can check out the builder’s spec home by visiting an ongoing construction. They may include many standard features in the base pricing, while some don’t. So, make sure that the amenities you see in the model home come with the finished product. Be clear about the pricing and safety measures at the site.

3. Warranty and Inspection

Read the fine print properly, especially when it comes to the warranties. Some sketchy builders provide a third-party warranty for considerable value and time. But when it is time to claim, you will be surprised to know the structural warranty has tens of exclusions.

Likewise, some builders may push for getting the construction inspected by someone of their choosing. But when the builder is the one engaging the inspector, how fair can their report be? You need to get clear communication about all these matters before the project starts.

4. Subcontractors and Suppliers

Find out if the builder is hiring skilled craftsmen for the job. Or, are they just picking random laborers working on daily wages, from a local gathering place? Compared to production builders, the custom builder has a qualified team of designers, architects, and subcontractors. They may be regularly using their services for several construction projects.

Speak to the builder’s local supply houses, subcontractors, and crew to learn more about their relationships. Without a good rapport, they may not stick with them for long. Or, the dissatisfied crew may create issues for you. Does the builder pay them on time? If not, it may be difficult to get timely supplies, and the project gets delayed.

5. Building Codes

When the builder agrees to add all the features you like at a low price, you may suspect that something is wrong. They may be cutting corners to meet your budget. Meaning, they may use quasi-knowledgeable tradesmen or hire the lowest bidders for work.

The outcome will be just as bad. They may not stick to the local building codes, partly because they may not be aware. Or, they mold the local regulations to their requirements, in a process known as selective code enforcement. The city inspectors enforce the adopted codes to some extent but turn a blind eye to some portions.

6. Recognitions

While accreditations and getting listed on the Better Business Bureau may be legit, do not go with face value for the so-called “Builder of the Year” awards. Most of these titles are bogus or are awarded by local magazines. Your builder may have paid them an advertising fee to appear on their “Top 10” list.

And then there are subsidiary companies or unrecognized builder organizations, which have no real value. They exist only to promote their members. If you believe such phony awards and titles, you may be looking at a botched ended product.

7. Building Sites

When you wish to see your dream come true, you would want to add all the possible amenities in the home. You may wish for a large garage, open floor plan, luxurious master suite, and a spacious kitchen. Most home buying public take pride in their outdoor facilities, too, namely, a swimming pool, outdoor kitchen, lounge area, etc. So, you choose a massive site to build your home.

But when the builder promises the moon within your budget, it is a problem. The reality and homebuilding sectors have witnessed a significant collapse recently. Besides, high spikes in the costs of construction materials and their shortage put a damper on building projects. So, they may be offering you land that is unsuitable for urban construction, in addition to using substandard construction techniques.

Conclusion

If in any of the above steps during your research, you feel like the builder is not being honest with you, look elsewhere. In the end, your project can go smoothly only when you can establish honest communication lines.