Constructing a new home tailored exactly how you want takes significant preparation and planning beforehand. While exciting to customize your dream house, key factors around budgeting, permitting, contractors and more impact the project’s success.
Financial Readiness
A new custom home build requires major financial readiness and budget planning upfront.
Overall Budget Realism
Be realistic around what custom home you can afford based on typical construction costs per square foot in your region, additional expenditures like architect fees, number of finishes and amenities you desire. Get quotes from builders to set expectations.
Contingency Funds
Experts strongly recommend budgeting an extra 10-20% cushion on initial builder estimates for unexpected costs during construction like permitting delays, damaged materials, foundation overages, rework from inspection changes.
Securing Financing
Whether tapping into existing savings, leveraging home equity loans, or pursuing construction loans, ensure financing is secured to cover the full projected cost of home construction before officially breaking ground.
Handling Your Current Home
If you are currently a homeowner, also factor into budget and timing considerations of how you’ll handle selling your existing house. Will you sell first or after completing new construction? Bridge loans can help fill timing gaps between transactions.
Design Planning
Clearly communicate your lifestyle wish list to the home designer or architect, including absolute must-haves features along with nice-to-have additions if budget allows.
Home Style and Layout
Consider aspects most affecting daily home life: number of bedrooms needed now or later, preference for open floor plans, sprawling island kitchens because regular cooks in your family enjoy entertaining, outdoor covered patios conducive to your hobbies and climate.
Future Expansion
If expecting to expand later for more kids or multigenerational living accommodations, make choices now like adding empty dormers, bonus rooms over garages or even framing accessory dwelling units (ADUs) to start. Significant costs savings can be achieved building now versus later additions.
Smart Home Technology
Decide early in the design process any structural pre-wiring needs to smoothly integrate preferred home technology products for security systems, home theater or sound, lighting, and temperature controls, etc. This forethought is far cheaper than after-the-fact renovation.
Ideal Lot
If you already own vacant land, the people at Jamestown Estate Homes, a build on your lot builder, recommend thoroughly vetting the feasibility to build on your land: ensure there are no restrictions blocking construction, the availability of utility connections for water, electric and sewer, any permits required by the county for development, and the feasibility of construction given the lot layout or terrain including need to clear trees or grade.
Reliable Contractor
Finding the right home builder or general contractor provides immense peace of mind for investing into such a major construction project.
Payment Schedule
Ensure the payment schedule and progress milestones expected are clearly defined in the contract; typical structure is 10-20% at contract signing, incremental payments at key phases like groundbreaking, dried-in shell, final walkthrough inspection before releasing final payment. Never pay 100% upfront or before inspecting work meets quality standards.
Insurance Verification
Explicitly verify general liability insurance and workers’ compensation policies are active for both the general contractor overseeing the entire project as well as all subcontractors to financially protect you, the homeowner, against risk such as onsite injuries.
Open Communication
Clearly convey from the start your expectations for quality craftsmanship, responsive communication styles and timeliness as well as how conflicts will be addressed professionally should they emerge down the road.
Conclusion
Building your dream home requires careful financial planning, design, and contractor considerations. Checking off these key preparatory items lets you confidently break ground on new home construction. The extra diligence is well worth it the moment you receive those front door keys to the custom dwelling your family will enjoy creating memories in for years to come.
