5 belongings you got to know when buying a replacement home

Posted by Carlos Whitney on April 4th, 2021

Building your new home cannot be a passive exercise, because there are many decisions that you "must" make. If you are unable or unwilling to make these decisions, you will force your builder to make them and run the risk that your new home may not turn out as you envisioned or cost what you thought. Here are 5 things to know and keep in mind when building your new home:

1. Know your numbers

Before you start building your new home, run a few numbers to determine if you can afford to build the home you want. Most home plans offer a construction cost tool (usually for a nominal fee) to give you an accurate estimate of construction costs based on where you are building. The numbers include construction costs, tax benefits, down payment funds and the kickback account, and other related calculations.

Once you've determined that you can afford to build the home you want, purchase your home plan and go to the bank to coordinate financing. Keep in mind that home building loans are a bit different than regular home financing. First, you will need a home construction line of credit that will be used to pay subcontractors and vendors who do the work and provide supplies. Once your home is built, you will need a residential mortgage to pay for the construction line.

2. Check the reputation of your builder.

There are many constructors, but they are not all the same. Do some research to seek out out which builders have the simplest reputation. Whether you're looking for information online or getting recommendations from your family and friends, find out if a builder is respected for doing quality work and being punctual. Our architects and designers recommend that you simply use only builders who are members of the National Association of Home Builders (NAHB).

3. Build with resale in mind

No matter how much you like the house you are building, it is unlikely to be the last house you will have. Knowing that you need to consider its potential resale value. Don't add so many improvements that you overpriced your home for the neighborhood. And don't choose anything out of the ordinary. Ask yourself if the features you are considering installing are likely to appeal to others.

4. Think green

Be sure to do your research to maximize energy efficiency in your new home design. Your architect and builder can help ensure that your windows face south so they receive as much sunlight as possible to heat your home. You'll want to ensure that bathrooms, laundry rooms, and garages are on the south side of your home and have small windows to minimize heat loss. Take the time to choose your HVAC and insulation systems as well as energy-efficient appliances and WaterSense faucets and toilets.

5. Don't forget the punch

Part of the final phase of building a new home is going over your "to-do list." A to-do list is a list created at the end of construction that shows what still needs to be done or what needs to be fixed in new construction. You and your contractor will create this list the week before closing when you take your final tour. You need to take notes every time you visit your construction news site or take a tour.

If you have a real estate agent, it is a good idea for them to go on the to-do list because you are not emotionally attached to your home and may have a better eye for spotting flaws.

When creating a to-do list for your new home, keep in mind that problems generally fall into two categories: reasonable failures and unreasonable failures. Reasonable failures are failures that fall within the tolerances of the building's construction. On the other hand, unreasonable defects are defects that must be corrected. These problems related to the quality of the house. Once the unreasonable defects in your new home are corrected, this is called substantial completion, which means that the new home is livable and may be occupied. Before closing your new home, you will have a final walk-through to verify that the items on your to-do list have been fixed. As long as the new home has reached the point of substantial completion, you should be able to proceed with the closing even if everything was not completed.

Be sure to put in the money to complete your escrow checklist. This will allow you to move into your new home while requiring the builder to complete the items on the to-do list. The to-do list marks an exciting time in the process of building your new home because your home is almost finished! Remember, you don't need to get so excited that you quickly go through your to-do list, because you don't want to regret not taking the time to fix these issues.