Tips
The construction time for a custom home is usually 8 to 12 months depending upon the complexity of the home.
We recognize that a successful construction process is the key to future business and we take what can be a very complicated process and make it easy. We start with very thorough blueprints and specifications that the builder, owner and each subcontractor receive. We want everyone involved in this process on the same page. We encourage our customers to stay involved throughout the entire process and we keep the communication lines open through all stages of building your Dream Home. We will have regular construction walks throughout each phase of your construction project.
Once we have evaluated your lot we will sit down and guide you through the design process. Bob can design your custom home or recommend a home designer to you that we have worked with for years. Most of our customers have great ideas and photos that they wish to incorporate into their functional Dream Home.
The construction of your home will be inspected by a building inspector for code compliance. Listed below are typical inspections that will take place during the construction of your Dream Home.
- When the slab of your home is ready for the concrete to be poured, an inspector will come out and check to make sure that all the steel required is placed correctly.
- All framing, plumbing, electrical, heating, insulation, etc. is completed. This inspection is made prior to the drywall being installed.
- When the cabinets, trim, driveway, and other finish materials are complete.
Hays Dream Homes works on a cost plus contract price. This margin represents the gross profit remaining after all construction costs are paid. There are a limited number of suppliers and labor providers for quality residential construction. This is a very competitive industry and most builders pay about the same price for goods and services. It is hard to understand why one builder could offer any special cost advantage over another. The only cost advantage is because one builder is purchasing and providing a lower quality service or product. I would be shocked if there was more than a 3-4 % variance in price between builders. The problem is that this never happens. Every builder will include different items in the home as standard and their trades will have different quality levels than the other builder which make a very real difference in cost. This makes comparing builders prices almost impossible. In order to get an accurate bid from several builders, the owner needs to have a detailed spec sheet with item numbers or cost allowances. The important point is to find a builder that you can trust.
“What is the cost per square foot?” is a commonly asked question of builders. It is impossible to give you an accurate answer to that question until the plan is decided upon, finishes are agreed on, and the building site has been inspected. Each home is quite different and the items included make a major difference in the cost per square foot. There are many variables in square footage costs. In building, the larger your home the less the square foot cost is.
Once you have decided upon the builder, the home design, and the cost of the home, you must obtain financing. You will want to contact a local financial institution and obtain a construction loan or interim financing. The builder is paid in draws as the construction progresses. All funds are directly paid to the builder. When the home is complete the lender will convert the interim or construction loan to a permanent mortgage loan. The interest paid on the construction loan is a tax deductible expense.
Financing
Hays Dream Homes recommends that you contact your lending institution. They will be happy to work with you. If you would like for us to recommend a lending institution to you, we will be happy to do that. We can provide you with a list of lending institutions that we have worked with successfully.