Building a custom home can be one of the most stressful experiences one's life. Many homeowners dread the fact that they have to start from scratch to build their dream home. However, it does not have to be that way if you have the right broker/agent to represent you.
If you decide to build a custom home, it is prudent to keep a few things in mind. The first thing to consider when beginning this endeavor is getting representation.
A real estate broker or an agent can represent your best interests, saving you time, money, and frustration. Best of all, their brokerage fee is usually paid for by the builder, not you.
Selecting a Custom Home Builder
We believe that the best way to find a builder is to get a referral from a friend or colleague. You may also wish to check your local Homebuilder's Association for a list of builders. These builders will be members of this organization, and will thereby subscribe to their code of ethics.
To be on the safe side, contact the Better Business Bureau (BBB) to research complaints filed against these builders. The most crucial part of this step is to see how the builder resolved previous problems. Things are always bound to come up, and it is important to know that the builder you select will work with you to find solutions to any issues.
Be sure to check the Registra of Contractors to ensure your builder has a license. Obtain their license number and investigate their reputation.
Ask the builder who they sub-contracts with, and repeat the above steps to determine their qualifications and credibility. You will also want to meet your builder's team. Find out who will be directly supervising the construction of your home. See if you want to use the builder's architect, or perhaps someone else. If you want to use someone else, make sure the builder will work with another architect.
You will also want to research your builder's track record on completion dates. How much time will they set aside for your needs? Do they charge you for additional time, or is it included in the original price estimate?
This is the time to thoroughly discuss pricing. From start to finish, pricing will be a 8-15 month process. See if the builder honor's today's prices, or will be adjusting for inflation. Is adjustment included in the initial proposal?
You will probably wish to ensure that your builder is flexible, in case you change your mind about details. See if they have a set cut off date to consider changes.
Once you have selected your builder, it is time to find your property.
Choosing Your Property and Financing
Find the area you interested in, and begin your search for your dream property. The internet is a good place to start. You can search for available lots right here on our website under the tab on the top left called "Homes on Entire MLS." Value of the land can be compared to lots that have been sold in the last three to six months. You may want to search for lots that were sold in the same subdivision first, then move one mile outward.
Your builder can help you determine if it is feasible to build your home on a specific lot. They can also help you determine if the land will generate any additional clean up costs.
You will need to work with a lender that specializes in construction loans and permanent financing. Remember, if you have representation, your broker or agent will be able to coordinate these efforts on your behalf through all these steps.
REALTOR® often have solid relationships with the professionals you will be using, so this will make your search a lot easier. Their experience will also help you avoid many of the common pitfalls associated with building a custom home.
Was this information helpful? Give us feedback by calling 480-217-7440. Thank you.
Lic. #LC245000 . Insured 
