Hi y'all. I am really going to try to catch you up quickly over the next few days...
I had decided to blog about our building experience about a month into the process and then life got busy after post numero uno. So this one is taking us back to about 4-5 weeks ago once we knew we had the option to build.
I will say that so far, the largest burden and stressor was actually selecting our builder. Honestly, we thought this would be the easiest part because we live in a smaller town and we know some very reputable builders. However, that is also the con--we know ALL the builders lol. We have trained them, cooked for them, become friends with them, our kids play with their kids, etc. So I will add little tidbits from our learning experience as I layout the process we went through. We will label these "L.E."s for "learning experiences".
L.E. #1 Just because you are friends before you begin the building process, does not
mean your business style is a match.
We met with seven builders and each one had their own unique approach to sharing their building philosophies with us.
Where we started:
Some jumped right to money--what costs were per square feet. Others jumped into contract inclusions--what perks were included in their standard packages vs upgrades. Others wanted us to just share our vision--what we wanted in a house...things we like, dislike.
Beating around the bush:
Some of the builders were more direct. Others beat around the bush and avoided certain questions. This became especially important when it came to what was included in their normal building package--which brings me to the Cost per Square Foot conversations.
Cost per Square Foot:
When we were researching and interviewing each builder, we were discovering that there was about a 50/50 split between builders that would commit to a cost per square foot for their standard packages vs those that were a bit more reserved about throwing around numbers until we were further along in the process. This was one area that really helped us make initial decisions or "cuts" in the interviewing stages. We knew what our budget for the build was, so we had a better gut feeling from the builders that were able to not only show us what was included in their standard package (without upgrades) but what that cost per square foot would be. HOLD UP
L.E. #2 Be sure you ask about CCCs--Cost contingency clauses!!! What is this? It is a part
of the contract where the builder usually addresses who is responsible for additional
costs should commodity pricing increase after a budget projection is given. There are
TWO SIDES to this piece.
Q: What happens if costs increase?
A: Usually the builder will pass along the cost to you--let's face it. They need to
make money also and don't want to risk losing out on their cut if they have to eat a
bunch of additional costs.
Q: If the builder passes along the cost to you, does their builder's percentage
increase?
A: The wording here is important. Some builders commit to a "cost-plus"
approach to building. Total cost of building the home (materials + labor) plus a set
percentage (we found that to be a pretty standard 10% from most builders). Other
builders have a set building fee regardless of the total cost of the project. Be sure to
ask this up front!
Q: What happens if the costs decrease?
A: This is SOOOOOOOO IMPORTANT to make sure is addressed in the contract. If
you can save money on cost, will your builder inform you? Will those savings be
passed along to you if so? This is a huge help if your builder is a "cost plus" builder.
Example: If your builder fee is cost plus 10% and the original projection for the
home was $300K, the builders fee would be $30,000. If costs decrease pretty
significantly and you can come in at $275K, your builders fee decreases to $27,500.
It may not seem like a big deal in the beginning, but that savings can help cushion
the bank for closing costs, increase your ability to purchase new items for your
home, or put it into savings for a rainy day!!!
L.E. #3 Be clear about your budget! If you have a ceiling, tell them! I would recommend giving them the lower end of your range if you have one. It is important to allow for some room in the event that costs do increase!!!
Ok--beyond really big questions about money and savings, another important factor in our decision was involvement. How involved will the builder allow me to be?
*Can we help select our trade specialists? (HVAC, Plumber, etc)
*Am I allowed to shop for our selections myself and get reimbursed with receipts?
*If I want a larger appliance allowance, can I work to save money in another area of my
budget and move the savings into the appliance category?
I feel that involvement is vital when you are building a truly custom home. If you aren't involved and cannot make some of these decisions, are we truly building the home of our dreams? Or are we living in a spec home that we picked out the colors for? And that is absolutely not saying that a spec home can't be amazing--it absolutely can! It really comes down to your overall preferences. How will you know which is better--custom or spec?
ASK TO SEE SOME HOMES!
L.E. #4 See homes that your builder has actually built. Don't settle for photos. When you are there, don't get sucked into the "pretties". Really look! Check for seams in drywall, cracks near the crown molding, and tile grouting. Get up close and personal with the walls--is the paint coverage good or does it look like it could have been sprayed with another coat? Open and close the cabinets and drawers--are they wood or MDF? Do they feel sturdy? Ask questions as you go and don't be afraid to point something out!!! Afterall, this is a true testament to their workmanship that you will have to live with for years to come!
If your builder is established, they likely have built several homes. Ask if they can line up some spec homes that show off their base packages as well as some custom homes. Be
specific on your custom home request though. It wouldn't be good for you to see a 1.5 million dollar home if your price range is $350k. Ask to see some homes that are reasonably close to your own budgeted amount so you are comparing Apple varieties--you know, honeycrisp vs red delicious instead of comparing apples to pineapples.
Discuss Your Wish List:
If you are building, you probably have a pinterest board full of ideas. Now is the time to bring those ideas to the table. We narrowed it down to a couple builders from the beginning and we really wanted to see which builder thought we could get as close to our wish list as possible without breaking the bank and more importantly, without cutting corners. Here were some of our wish list items:
MAKE OR BREAKS:
*4 bedrooms or 3 bedrooms with an office--we have two kiddos that need their
own space and privacy and we work from home so we wanted an extra bedroom
that could double as an office.
*Split floorplan--we wanted a master wing. YEP! Our side of the house vs theirs!
*Large pantry--being in the meal prep business, I need storage space in the
kitchen for containers, bulk ingredients, etc.
*Large master shower--we have had a smaller shower for years in our own
bathroom and it is time we had our own larger shower
*Multiple kitchen appliances--you may not believe it, but I have cranked out an
average of 400 meals a week for the past 6 years with only one oven. It was time
for an upgrade.
ALL THE THINGS:
*Power outlets under the cabinets in the kitchen
*Under-cabinet lighting
*Outlets in the kitchen island
*Soft close drawers through out house
*Deep tubs in the extra bathrooms
"Vaulted ceilings
*Oversized island
We were really happy we brought up all of our preferences and had pictures to reference the ideas for design and our overall style. We were pleasantly surprised to find out that one of the builders included a lot of the preferences in his standard package anyway. That means we weren't paying an upgrade fee for some of our true dream home ideas! WINNER WINNER
This is really what led us to our final decision on a builder. Our overall impression after our in-person meeting gave us all the warm fuzzies we needed to select our builder and move on to the next step. He took his time sharing his honest opinions, was transparent with us about costs and showed us ways we could save money while being fully immersed in the selection processes to ensure we have a home we love at the end of this process.
FINAL L.E. Be sure you have PEACE OF MIND about your builder selection. This individual is carrying out the vision in your head and you will be working closely with them for an extended period of time. You have to be able to fully trust them and know they will steer you in the right direction. Home is where the heart is afterall, and you don't want to end up with a new home and a broken heart just because decision #1 didn't feel right!
Comments