TIPS FROM "SURVIVING BUILDING A NEW HOUSE" March 1, 2002 Guest: Denise Lones, CSP, MIRM THE ADVANTAGES OF BUILDING A NEW HOUSE The home is more customized to what you REALLY want and need New homes are usually built in an area of expansion not in an area that is declining. This is very important as your future resale value is determined very much by location. Design features can accommodate your personal compromises New homes have many up to date safety features like hard wired smoke detectors on every level Electrical power systems in new homes are properly sized for the heavier electrical demands of today's homes Energy efficiency is better in a new home with better quality windows, more efficient heating and cooling systems New homes consume 50% less energy than homes built in 1980 Less maintenance due to siding, windows and trim that never need painting DENISE'S 6 TOP TIPS TO BUILDING A NEW HOME DO NOT OVERBUILD FOR THE NEIGHBORHOOD. This is one of the biggest mistakes new home builders make. Compensating to build a bigger home by paying less for land costs will often come back to haunt you. BUILD FOR RESALE Even if you plan on staying in the home forever, remember, one day you will have to sell. Do not scrimp and forget a bathroom that may make the difference in being able to sell for top dollar later. GET THE BEST CONTRACTOR YOUR BUDGET WILL ALLOW The most important thing you will do when building is to research and find the best contractor. Past reputation is very important. Cutting corners on your contractor is like cutting corners on your child's car seat, don't even consider it. WATCH CONSTRUCTION ALLOWANCES CAREFULLY Make sure that what you think you are getting you actually are getting. Most people that are building, especially for the first time do not know what the allowance amount will buy. Check out the allowance to the actual product first. MONITOR THE PROGRESS Keep a diary and watch the progress but DON'T bug your contractor every time a nail isn't hammered in on time. The home building process is one that does depend a lot on the weather so be patient. RESEARCH, RESEARCH, RESEARCH The planning stage of building a new home should take longer than the building stage. WHY SHOULD YOU USE A GENERAL CONTRACTOR Use a general contractor to save money. His/her experience could save you thousands of dollars. You are also paying for their good relationships with subcontractors. These good relationships prevent costly delays. Get exactly what you want. Doing it all on your own unless you are an expert will most definately cost you in the long run. Preventing a big mistake is what a good contractor can do for you. A good general contractor can work with you to make the desired changes that often arise in the middle of the building process. Most people who do not use a general contractor and do it all themselves usually regret it later. HOW TO FIND A GOOD GENERAL CONTRACTOR/BUILDER Ask your local Building Association if they can recommend a good builder Ask your local real estate agent for a recommendation Ask the owner of a new home if they were happy with their builder Go to www.homebuilder.net Go to www.improvenet.com THINGS YOU NEED TO KNOW ABOUT YOUR GENERAL CONTRACTOR/BUILDER Is he bonded and insured? If he is bonded are there or have there been any claims against the bond? Are there or have there been any lawsuits filed in Superior Court? How long has this person been in business? Check with the Department of Labor and Industries COST SAVING TIPS Building on a flat lot usually costs less. If you have to haul in lots of dirt, do a lot of grading, clear trees, or blast large rocks, site preparation costs will be higher. Cost overruns can run anywhere from 10 to 25%, be careful that you are getting what you think you are getting. It is most economical to build a home which is no deeper than 32 feet. If depth exceeds 32 feet roof trusses may need to be specially designed and will be more expensive. Know exactly what is included in your contract and make sure that all fees have been included. Prevent surprises and remember that agreements prevent disagreements. BUDGETARY PITFALLS Allowances are too low. All fees were not included in bid. All site costs were not included. The foundation allowance was not included or is not enough. Building a home can be an exciting and rewarding experience or it can be a nightmare, get professional advice and guidance before you build. If you have any questions please feel free to ask them and you will receive a prompt response.