The how-to process of building a house from the ground up
The How-To Process of Building a House From the Ground Up
- Acquire land or property
- Find out county regulations, requirements, documents, etc for a build site
- Hire a residential designer or architect, or pick a house plan from resources off internet
3.1 NOTE: stock plans need modifications and updates to fit building zones and requirements
3.2 Many builders offer pre designed/engineered floor plans for builder homes and neighborhoods ready to be built
- Once you have your plan that fits needs and expected budget, hire a builder
Or be an owner-builder (save money but you’ll have to manage contractors [be strong] and negatives = financing requires builder and costs could be too costly)
- Builder will help with cost breakdown and coordinate sub contractors, inspections, and approvals as needed for project
- Know what goes in an estimated cost breakdown of home; typically the breakdown is based on foundation, lumbar, framing, plumbing, heating, electricity, paint, builders proof, etc.
- Remember : don’t want to underbid or overbid any item- accurate numbers with 5% contingency for cost overruns
“Good builders will send out the house plans to their subcontractors for specific bidding on each main item or can estimate the home themselves. The builder will send one set of plans to the foundation contractor, one set of plans to the framer, one set of plans to the plumber, etc, etc. When all the numbers come in, the builder will fill out the cost breakdown and come up with a total cost to build your new home.”
- Read your contract carefully
Fixed Contract: This contract is simple and straightforward. Take the total of the cost breakdown and put that fixed number into the contract. The builder will provide a list of responsibilities.
Cost plus Contract. This type of contract is usually for large construction loan projects. The customer wants to make a lot of changes to their home as it’s being built. The construction loan period to build the home is 18 months so construction costs can change drastically. The builder prefers this contract to protect the costs and profits.
- Get construction insurance- whichever type that need be: Course of Construction Insurance, General Liability Insurance, or Workman’s Compensation Insurance.
- Enjoy the process and form a strong team that complements you, in the end the homeowner, builder, designer all have a say but this is for you