The home building process for a new home will require you to make many decisions. The biggest decision you will need to make will be do I hire a home builder or contractor or do I try to act as the general contractor myself?
The traditional method would be to hire a home builder or general contractor to oversee construction. The plus side is a home builder or contractor will bring valuable experience to the table. This is important because they will have the ability to spot potential trouble early on and suggest adjustments that could potentially save you thousands. Plus they have all connections in the community to get your home build of the highest quality craftsmanship. And if that’s not enough they will know the permit process in your community/county and assuming there are no major speed bumps along the way, can deliver within a specific time frame and usually within budget. The down side is that this method is the costliest, with most home builders or contractors adding a mark up to the supplies as well as a profit margin for themselves.
If you don’t want to use a home builder or contractor, you can act as the contractor yourself. Now let me just say I don’t recommend this for someone who has no home building experience. But if you do decide to be the general contractor your job would be to hire all of the sub-contractors and manage them, file all the permits, and deal with all the fires a home builder or contractor would be responsible for extinguishing and accomplishing. On the up side, this could mean saving thousands if done right. The down side is that if it’s not done right cost could explode beyond your imagination. For example, a misfiled permit or a mistake that slows construction could increase cost by thousands. And to make things more challenging you probably have no connections with sub contractors and probably fall low on the totem pole when it comes to getting good pricing or actually getting things done in a timely fashion. The plus side is you’ll have more control over the home construction and have the ability to shop for deals that otherwise would not be able to. The down side is that construction time will generally be longer and you probably really don’t know what you’re doing.
Once you decide if you’re going to hire a builder or contractor to build your home or do it yourself, the next phase of the building process for a new home is funding. Some homes are completely self-financed, but that’s obviously rare. Most new home construction projects require a mortgage or construction loan. Once you have a loan commitment in place you can begin the process of building your new home.
1. One of the biggest decisions you will need to make will be are you going to hire a home builder or general contractor or are you going to act as the general contractor?
2. Home builder or contractor bring experience to the table that will probably equate to a higher quality end product.
3. If you don’t want to use a home builder or contractor, you can act as the contractor yourself. The downside is you probably don’t know what you’re doing and chances are you don’t have very many connections with sub contractors to get your home built in a timely fashion or of acceptable quality.
4. Once you decide who is building your home you will need to secure a mortgage or home construction loan.
5. Learn more about the home building process for a new home by downloading the free new home Steps Guide above on the right hand side and become savvy on the overall home building process.