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Building A New Home

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Building a new home is a process that begins way before the concrete is poured. There are several important steps you must take to avoid costly mistakes during the construction process. Planning and preparation is absolutely essential to a successful project. The end result could very well be the home of your dreams.

The first step is to plan your budget. Start thinking about how much you can afford to spend and how much building your new home is likely to cost. Most people end up taking out a construction loan and a mortgage at this point. In the very beginning of your planning you should find out what size loan you qualify for. Also, knowing the approximate building costs will make it easier for you to modify your building plans to meet your budget.

The next step is to choose your lot. Before you build your new home, it's wise to take the time to consider the ground on which it will stand. If you carefully think about what you most desire before choosing a lot then chances are you will want to lay roots there for a long time. Some of the major things that you should take into consideration before selecting a lot include your lifestyle, surrounding sounds, surrounding sites, and quality of the soil. You will also need to investigate factors such as drainage, zoning and building codes in the region.

It is now time to hire your team of professionals. When looking for a builder to consult or hire, there are four basic requirements the builder should fulfill. The more time you put into carefully selecting your builder, the better your chances are for getting the house of your dreams. Putting in a little extra time to review four major areas of hiring a builder could save you hours of distraught in the future. The four areas include financial security, variety in floor plans, buying power, and a good warranty program.

Before you built you must have a house plan. It is common for people to use stock plans from a catalog because they are the most affordable. The builder or a home designer that you hire can then make minor modifications in room size, window style or other details accordingly to what suits you best. A custom-designed home, on the other hand, is created specifically to the needs of those living in the home. Custom plans are obviously much more expensive and usually require the assistance of a licensed architect.

Lastly, you will want to make sure to negotiate a contract thoroughly. It is crucial that a thorough contract be made between you and your contractor to establish two important things. It should first specify who is responsible for what and secondly, it should determine what to do in the event of a disagreement. Put simply, a construction contract is the document that ties all the project agreements together by listing them and by setting forth rules that apply to each: plans, specifications, payment schedule, written change orders, subcontracts, production schedule, etc.

Building A New Home

Here some tips if you are wanting to RemodelFlip Houses (Buy a house fix it up and then Resell it for profit)

If you are into real estate investing then you more than likely have been thinking about the idea of buying and selling houses. I have been doing it for quite some time and here are some tips for you.

1. If you know nothing about construction then I HIGHLY recommend you hire a General Contractor ( GC ). A reputable contractor will meet you onsite and look at the subject property. You should be able to get some estimates of repair. Make sure he/she is licensed and insured. Get a copy of his contractors license. Absolutly DO NOT try to go into it thinking you get everything done yourself in 4 weeks on a budget of $10,000.00

2. When arranging your financing with a lender ask for an interest only loan for 1 year. Your payments will be lower. If for some reason it takes longer than a year to sell the house you can sign for another year. Make sure you confirm this with your bank.

2. Make sure that you figure your carrying costs into your loan. By doing this you will have financed the payments and be able to draw from the bank when a payment is due. The amount of payments you can include will vary depending on the Loan to Value (LTV)

This will keep you from going out of pocket for a few months. Hopefully the property will sell.

3. When you have received the estimate from the contractor add about 3-5% to it. I am not suggesting that your contractor is trying to scam you. The fact is all budgets (when flipping houses) run over. So count on it up front so you are not surprised in the end.

4. Call your insurance company get the premium amount and add those numbers into your loan. When the payment is due draw from the loan.

5. Make sure you figure in utility expenses. Take into consideration the season and the type of utilities the property has. You may need to add more or less depending.

6. Strongly evaluate the market in which you are investing. Do your homework and see what other properties are selling for. Too many times I see people get into this business, not figure in all that there is and then try to sell for more because they are over budget.

Have all your numbers together.

7. Go to the job EVERYDAY or at least every other day. If you do not have time to do this ...then do not flip houses. Whether you are doing the work or a GC, the project will go more smoothly, closer to budget and be completed on time. If you are using a GC this is imperative. He or she will need your opinion daily.

8. Always install new appliances.

9. Pick out all of your colors out before you start. Write them all down and make sure your GC has a copy. This is crucial to getting the job done on time. If anything needs special ordered you will know it upfront. Not to mention if you have to be unavailable for some sort of emergency...everyone can still keep working.

10. Allow a reasonable time frame. Take into consideration holidays and weather. Do not kid yourself. Be realistic. Don't expect anyone to work on Christmas day unless you are.

I have had good flips and bad ones. Every flip has had a surprise. With my most recent one I encountered over 200 bats in the roof. It cost me $1,800 to have them removed and I did not have that expense figured into the budget.

Have you ever flipped a house. If so please share.

To your success,

Sean

Make sure you look at the . This is a must have tool considering building a new home. Wishing you the best

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About Author

Both Liz Wood & Sean Mcalister are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Liz Wood has sinced written about articles on various topics from Home Security, Home Management and Kitchen Home Improvement. To learn more about , and for a free price quote from. Liz Wood's top article generates over 9900 views. to your Favourites.

Sean Mcalister has sinced written about articles on various topics from Writing, Home Management and The Internet. . Sean Mcalister's top article generates over 135000 views. to your Favourites.

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