5 Tips for Building a New Construction Home

Buying a new construction home can be a very rewarding experience. It allows home buyers to make their dream home a reality. Even though they’re not completing the building process themselves, planning a new construction home still takes a lot of time and effort. You want the building experience to be a positive one. Working with a builder, finding the right location, and finalizing the purchase are all parts of the construction process–before the shovel first breaks the ground. These tips for building a house will get you going on the journey.

1. Make a List of Must-Haves

Start by making a list of must-haves for the new construction home. Include factors like where the home should be located, how big the square footage will be, and how many bedrooms it will need. You may even want to include specific features you like, such as an island in the kitchen, a gas fireplace, or the size of the master bedroom closets. It may be that the architectural design is as important as the layout, but right now isn’t the time to pick paint colors or crown molding. Work with all household members to discuss goals and hopes for the future home.

2. Choose the Right Location

Some location elements to consider when trying to decide where to buy a home:

• Urban, suburban, or rural. Buyers should ask themselves how close they want to be to work, schools, doctors, businesses, and neighbors.
• View. Is having a view important, and if so, what kind of view do you want?
• Water features. Buyers should contemplate whether they want to be close to creeks, lakes, or ponds. Some building plans work with the land features.
• Neighborhood features. Buying into a master-planned development may come with perks like walking trails, swimming pools, and playgrounds. How much do these matter to you?

Get a property inspection before finalizing a land purchase. Inspectors can check soil quality, air quality, pollution levels, and more. The results may impact the construction project.

3. Decide Your New Construction Direction

Now it’s time to decide if you want to build a totally custom home or if you want to save on building costs by selecting a model home. Part of this helps set your building budget, but also narrows down building contractor choices.

Custom home builders work with you to build something unique. They’ll take you through the design phase, which has two elements: architecture and structural design. Architecture will be the way a home looks. Structural design is how the home functions, accounting for elements like lot size, local codes, and budget. Both work together in architectural drafting to create the building plans. A custom house means making many important decisions, from what kind of water heater to the types of windows. The custom route takes extra time because of the building permit process, sourcing the materials, and the overall design process.

Semi-custom home builders present detailed plans with some decision-making room. For instance, you might be able to add a third garage or a bonus room to a particular layout. You’ll also have choices to make in the design process about the kind of kitchen countertops or light fixtures you want to see.

Model home builders work from a set detailed plan with little room for customization in the building project.

No matter which route you decide to go, you’ll want an experienced builder.

4. Vet Your Builder

Always check out the builder before hiring them. Building a house from scratch takes a lot of experience and understanding of local building codes. If the buyer does not hire a design-build contractor (a contractor who provides design services in-house), they should also vet their architect.

To save thousands of dollars for a custom home build, you can pick from a home builder’s pre-drawn plans. It streamlines the building process, enables the home builder to buy materials in bulk, and still has some room for customization.

When vetting a home builder, ask to see the builder’s portfolio of work. It will show if that builder has a style compatible with the buyer’s tastes. It will give you a sense of the builder’s experience.

If you can, tour the builder’s model homes. Even if the model isn’t your architectural design, you can see the actual construction results.

Additionally, buyers should ask the building contractor questions such as:

• What is the period of time of the entire home-building process?
• How long have you been doing this work?
• Are you licensed to build homes?
• Do you have references?
• What is the design process when working with you?

5. Get a Construction Loan

Traditional home-buying loans cannot be used to purchase land and build a home. Some buyers make their land purchase in cash and then get a construction loan to build their house. Other buyers get a loan to buy land and then roll it into a construction loan to purchase their house. Either way, buyers need to work with a reputable lender to find a home construction loan product right for them. There can be deadlines associated with these loans, so keeping the building project on a timeline is key.

6. Work With a Real Estate Professional

Working with a real estate professional is one of the best ways for buyers to ensure their home-buying process goes smoothly. Real estate professionals can help new construction home buyers negotiate the cost of the land, negotiate perks with builders, and finish the closing of the purchase. They can be there to support you through the entire process. They can also provide some tips on building a new house.

Picking Your Experienced Builder

Building your custom house is a major investment. As you can see, all these steps happen well before the actual design phase or start of the construction process. With these tips in mind, home buyers interested in purchasing a new construction home can begin planning their first steps.

FAQ

How long does a home design process take?

The honest answer is it depends. Working with a custom home builder to design and build a home may take longer than purchasing a model home. Other factors include the design complexity, the home size, the availability of materials, and communication efficiency between the homeowner and the architecture design team. Your lot and home design may require special engineering on important structural components like the roof trusses or the type of foundation.

How long does building permitting take?

Every county and city has a different construction review and permitting process. Any custom house requires detailed plans to be submitted to ensure the structural design meets local codes. The actual period of time may also depend on staffing or if your local housing market is active in new home builds.

Updated July 2024