For the homeowner, building a custom home starts out as an exciting burst of imagination and vision. To keep that spark and excitement, you need to work with a residential construction company who gets your vision and knows how to execute. Let’s discuss what building a dream home looks like once you start the process.
The first question: custom versus “spec”
Once you’ve decided to buy new, the natural question is whether to look at spec homes or hire a residential construction company to build a true dream home. Spec homes are those already built or in progress by the builder, ready to sell — with customization being limited to final touches like paint and small fixtures.
Frankly, the customizable aspect of spec homes cannot compare to custom builds. The layout is already set, and significant changes are cost-prohibitive. Advertised prices may include a budget to choose your own drawer pulls and door knobs, but upscale taste can easily stretch beyond the allowance. Basically, spec homes are not a close substitute for the dream home experience that a residential construction company can give you.
Location: Finding a Lot
They say you can’t pick your neighbors, but you actually can with custom residential construction. Choosing where you live is one of the best reasons to build a custom home.
If you already have a neighborhood in mind, you can begin looking for the lot. Some builders keep lots as inventory, so you might just approach residential construction companies in the San Francisco area to ask if they have locations available.
Important to note: various municipalities and homeowners associations have different zoning and regulations, so make sure that your envisioned dream home will be feasible in the location you choose.
Financing: Lot, Construction, and Mortgage
Residential construction can be financed with all-in-one loans to cover the land acquisition, construction costs, and long-term mortgage. These three areas can be separated into different transactions if you prefer.
Building a new home carries more risk than buying a pre-owned home, so the lending requirements and paperwork are very serious. Gather your documentation earlier and talk to mortgage companies and other lenders with experience financing residential construction — the key thing is to start early and determine the payment schedule and job completion benchmarks that the builder will need to meet.
The Contractor: The Right People are Crucial
Your choice of contractor plays the biggest role in the quality of the finished home. If you are hiring an architect and creating your own plans, it might be tempting to simply hire the builder with the lowest bid. However, skimping on the contractor will inevitably lead to substandard materials and/or labor practices.
The best option is often to hire an architect and builder as a team, which can save you money and prevent change orders down the road.
Homeowners who have done this before will all tell you that experience is the most important factor. You want a local residential construction company who has built custom homes in the Bay Area — a strong network of subcontractors and parts suppliers makes the experienced builder better able to complete the job on time, on budget, and at the quality you expect.
Ultimately, it’s important that you feel personally comfortable with the builder. Residential construction requires ongoing communication and updates over the course of many months. There’s more than even the large investment at stake, and that’s your sanity and peace of mind. Contact us and enjoy these benefits.