Home plans
require careful consideration before purchasing.
Financial Considerations:
Budgets should be considered while shopping for the right home plan and
location. As a general rule of thumb your building site should cost no more than
20% of the total cost of your home and site combined.
Before you start, make sure that you know how much you can afford to spend.
Investigate your options by making an appointment with your bank or loan
officer. Banks often provide attractive loans that can initially finance the lot
purchase as well as the construction cost which can then convert automatically
to a permanent loan. Also find out if your bank reserves the right to approve
the builder you choose.
Make appointments with local contractors and builders in your area to get
estimates on the average cost per square foot to build the home plan that you
have chosen. You should also get estimates on the cost of driveways, utility
hook ups and septic tank installations or sewer connections.
Choosing a Contractor
Choosing a building contractor is probably the most important decision you
will make. Your builder will not only be responsible for building a high quality
house that will last for years and years, but he will also be responsible for
coming in on budget, getting the house built when you need it to move in and
coordinating the multitudes of subcontractors it will take to get the job done.
It should be stated at the outset, that most home contractors are dependable
and trustworthy businessmen, however there are a few guidelines that you should
follow to protect yourself and your investment.
* Always obtain more than one estimate.
* Never choose a contractor based solely on lowest price.
* Don't rely on possible legal remedies as your protection against someone
you are apprehensive about to begin with. Simply don't hire that particular
contractor.
* Research their background first before hiring them. If your state has a
licensing board for contractors, call to find out if there are any outstanding
complaints against that license holder.
* Call your local Better Business Bureau to see if there are any complaints
on file.
* Don't be afraid to thoroughly interview the contractor candidates. Ask what
kind of worker's compensation insurance they carry and get their policy number
and insurance company contact information so you can verify everything. If they
are not covered, you could be liable for any work-related injury incurred during
the project.
* Be sure that the contractor also has an umbrella general liability policy.
* Don't hire the contractor who only suggests changes that will reduce the
price—and possibly the quality—or the contractor who does the opposite and only
makes suggestions that will result in expensive changes. There should be a
balance
* Choose a contractor based heavily on past performance. Ask for names of
clients and follow-up with phone calls and drive-bys if possible. A good
contractor will be happy to provide as many referrals as you want.
* Choose a contractor based on recommendations of local business owners he
deals with such as bankers, material suppliers or local officials.
* Choose a contractor who appears knowledgeable and has a helpful attitude
and will have your best interest at heart.
* Finally, don't be rushed into making a decision, no matter how competitive
the market may seem. And never pay a deposit to a contractor at the first
meeting.
So, now that you have a better idea of what to look for when buying a new
home plan all you need to do is choose a style! See our information on
Architectural Floor Plan Styles which explains the differences between the
various home plans. We also have some great ideas and suggestions for choosing
the Right House Plan as well as information to help you understand how to read
your new blue prints.
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