Tips on building your home

A departure from the usual this week, brought about by some questions asked of me by some friends with whom I attend church.

You're in your late 20s or early 30s, and that old house you've been living in just isn't cutting it anymore. One and a half baths, while ok when you were first married, is not enough for you, the spouse, and two little ones. Or perhaps you just want to show the world that you've arrived, and get in that great neighborhood. Or maybe you're just ready for something nicer.

Having a new home custom built for you can be a great experience. You'll have the house your way, and it will reflect your own tastes and style. But if you're not careful, your new home can become a nightmare. That six month construction project may drag on over a year; the costs could run over beyond your budget, and your brand new home could be flawed and even fail to meet code requirements.

How, then, can you make sure that your new dream home won't become a nightmare?

1. Buy below your means. Go against everything our society tells you, and buy less of a house than you can afford. Many of the problems my clients run into when building a house results from them trying to stretch their budget to the very maximum when buying a house. Most of my clients first decided what was the most house they could afford, then tried to pick out a plan meeting that criteria. When you do that, if anything goes wrong, you could have problems. Instead, figure out what you can afford, and either plan to buy less or plan to save more first.

2. Pick your contractor based on reputation, not on price. The second problem I've found with my clients is that, once they've picked out the plan they want (which usually maxes out their budget), they then want to find the cheapest builder. This is often because they've underestimated the cost of their house, and when they submit it for bids, they can't afford most of the contractors. In any given area, there are dozens of builders, and their abilities, honesty and qualities run the gamut. Just looking at their bids, or their slick presentation, will not help you pick the right one. Instead, look at the builders' prior work, speak to their prior customers; better yet, start off by picking builders who've been specifically recommended to you by friends or family who are satisfied customers. Or ask your attorney. Believe me, if any client asks me, I can tell them a half-dozen great builders; and better, yet, if they give me a name, I can tell them the builder's reputation.

I can say the next statement without qualification: in every builder/contractor dispute I've been involved in, when home buyers picked the cheapest home builder's bid, there have always been problems. If one builder's bid is far lower than the rest, be very wary. Some unscrupulous builders will underbid the project to get the job, then surprise his customers with cost overruns. Other builders are not dishonest, but are so inexperienced or unqualified that they cannot accurately quote a project. If they can't quote it accurately, they will probably cause you other problems during the building process.

3. Put everything in writing. Unlike some lawyers, I'm not going to tell you to lock your builder into a set-price contract (i.e., he'll build your house plan for a set fee of $X). For one thing, that's just impractical, and for another, most reputable builders will not agree to it because they can't control the fluctuating prices of materials. Whatever the contract you agree to, PUT IT IN WRITING! Too many home owners are promised things by the builder, such as total estimated cost, estimated completion time, etc., that are never reduced to writing. Make sure the important areas of the contract are put into the contract. For one thing, it will bind your builder legally, and prevent later disputes about what was said. For another, though, it will make sure that you and your builder have a good understanding between each other, and will prevent misunderstandings that can occur when some things are just assumed or are left unsaid.


4. Be conservative. In all your estimations, hope for the best, but plan for the worst. If your builder tells you that your kitchen should cost between $15,000-$17,000, plan on $18,000 or $19,000 just to be safe. If you're told the house will be finished in five months, plan on six or seven. Planning for time or cost overruns will keep you from getting into a budget crunch and will help reduce the stress of those unexpected contingencies that will inevitably arise.


5. Changing your mind costs money. One final thing: the more you change your mind during the building process, the more it will cost you. I represented one custom builder whose clients continuously changed their minds and upgraded their options during the building process. By the time they were done, their house cost 25 percent more than had originally been quoted! Just remember that if you change, for example, the layout of a room or decide to upgrade some of your options, you run the risk of increasing your costs not just because you've decided on something more expensive, but also because you might disrupt the flow and timing of your project, thus causing additional delays and man-hours. If you want to change your mind, that's fine; but be aware of what it's costing you!

If you have further questions about have a new home built in North Carolina, feel free to contact me and set up an appointment at 704-735-0483.