Q-1
Where do we begin the process of building our dream home?
There are numerous places to start. The following are some
suggestions which are in no order of preference:
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Find a builder who builds the style of home that appeals to
you and is within your price range and has a reputation
for reliability and credibility.
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Acquire a piece of land that you love.
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Look for a house plan already built, in a book, as a model
or in a parade of homes that fits your needs or
incorporates ideas that appeal to you.
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Find a builder that has a lot or a house plan or both that
fits your needs.
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Hire an architect or plan designer you trust (check
references first).
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Have a desired or needed geographic location. Go there and
start looking.
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Talk to a trusted realtor or builder who will help you sort
through the options.
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Ask friends, business associates or homeowners, in the area
where you are going to build, for a referral to a good
builder.
As always, budget will determine the type of land and home
you can acquire. To a great extent it will also determine
your location. If you are from the general community you
will already know, for the most part, where and what you can
afford. Talking to experienced builders, in the area you
want to build, will help you determine pretty quickly
whether you can make things work. Realistic expectations are
a must at this point. Priorities and options will have a way
of surfacing once you commit to the process.
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Q-2
How do I avoid being overwhelmed by the details?
As with any sophisticated organization of men and materials,
knowledge, experience, dedication and discipline contribute
to the effective accomplishment of the task. The key is
breaking down the total objective into manageable groups of
steps that will be completed in a logical, organized manner.
Generally, the builder you select is the critical component
in this process. If you don't have a plan he can usually
help you find one or provide and architect / designer to
prepare a preliminary design. With a preliminary plan the
builder can provide estimated pricing to determine if you
are within your budget comfort level. Many times he can help
you find a lot or direct you to someone who can. Not all
builders have this diversity of skills and experience. Some
only build, so you need to determine the capabilities of the
builder you are talking to and, where he lacks experience,
obtain the professional help you need.
As with most matters, many of your selection decisions
hinge on cost. A knowledgeable builder and his professional
staff can help you sort through the almost unending list of
options in a rational manner. If he doesn't know the
approximate cost of an option he can certainly find it. Only
with accurate and complete information can you make
confident decisions.
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Q-3
How do I select a builder?
Selecting a builder is probably the most important of all
decisions. In addition to experience, skill, dedication, and
honesty, he needs to relate to you and your family. You can
determine his qualifications for your project by doing any
or all of the following:
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Check references by talking to homeowners and business
associates.
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Inspect in-process and completed projects.
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Meet with him and his staff.
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Review his contract, specifications and related job
organizational materials.
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Call his key subcontractors and suppliers to determine the
quality of his working relationships.
At Doug Myhand Construction, we feel the builder client
relationship will last not just for the design and build but
most likely as long as you live in your home.
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Q-4
How do I compare builder pricing?
This is probably the most difficult aspect of builder
selection for prospective homebuyers. Obviously, you want to
get good value for your investment. Everybody asks "what is
your cost per square foot?" This is a virtually meaningless
question because there are so many variables which can
distort the comparison. The costs can vary significantly
based on the style of plan, level of finishes, location and
infrastructure required by the lot or community.
We suggest the most accurate way to compare pricing is to
ask for the following:
-
Cost per square foot for main level square footage: If you
build a home that is one level with an unfinished
basement, all the costs associated with the site,
garage, unfinished basement and deck or patio need to be
reflected in the cost of the main level.
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Cost per square foot for basement finish: This will be
significantly less than the cost of the main level
finish because the exterior walls, windows, insulation,
base plumbing etc. are already existing and you have
infrastructure or other costs involved.
-
Cost per square foot for second story finish: This should
be less than the main level but more than the basement
due to the need for exterior walls, windows and stairs
but no costs associated with the main level.
Once you have determined the cost, you need to identify
what it includes. Walk with the builder through his model or
a completed project to identify "standard" features. Ask
about other components you can't see such as energy features
and sound batts in the walls
If this is not clear, contact us and we will be pleased to
assist you.
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Q-5
How can I be assured the value of the project will equal or
exceed the cost?
Project value results from incorporating the most broadly
desirable components and finishes, including land. If you
obtain these desirable components and finishes at a fair
price value will equal or exceed the cost.
If a financial institution is providing the construction
funds they will require an appraisal of the project. The
appraisal will provide a fair valuation of the project.
Another factor that influences value is the appropriateness
of the item for the project and how it relates to the total
project value. For example, spending $4,000 for a pedestal
lavatory in the powder room of a $250,000 production home
probably will not increase the value accordingly. However,
installing the same sink in a $1,000,000 home that has
upgraded fixtures throughout probably would. How do you know
what to select? An experienced builder, architect, realtor
or interior designer can lead you in the right direction.
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Q-6
When should I impose my personal tastes and desires?
We suggest to clients that if they are going to be in a
house for 5-years or less stay away from really unique
features that don't have broad appeal. This could include
interior finishes or spaces that aren't customary. If you
are planning to live there 10-years or more, you can
exercise much more freedom in your design and selection
without the short term retail concern.
You will apply this thought process for each area of
selections. It can get complicated, however with experienced
advisors you can proceed with confidence.
As a builder, we go through this exact process each time we
do a speculative home or build our personal residences.
Since it is our money, we know how you feel. We are always
trying to identify the most appealing features at the best
price.
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Q-7
How can I easily determine if my desired plan is compatible
with my lot?
Lot size and topography are usually the most limiting
factors. If you have a 100' long house with an end load
garage, you probably won't fit on a 120' wide lot. With
setbacks and turn around requirements the house will be too
long. A walkout ranch won't work very well on a flat lot.
Depending on how much and which way the lot slopes will
govern the type of home that utilizes natural features best.
An experienced builder or architect is best suited to make
this preliminary evaluation. We provide this as a free
service.
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Q-8
How can I find a lot that is suitable for my plan?
When purchasing a lot you will most likely be dealing with
real estate professionals. If either the listing or selling
agent has land experience he can make this evaluation.
However, it is also advisable to seek the advice of an
experienced builder. The more difficult the project the more
professionals you might need to involve. If soils are
questionable you might need to have a soils engineer do a
soil examination. If topography is not easily discernable or
there are significant grades you should have a surveyor
prepare a topographic map and so on. If a licensed architect
is preparing the plan, he should be involved. Usually site
features are not that ambiguous and the builder/ realtor
evaluation is adequate. Whoever is helping you needs to
recognize whether paying additional professionals will be a
good investment. We suggest that any land contract should be
contingent on resolving any questionable conditions. If you
don't have a realtor involved, it becomes even more
important to have a builder assist you. At Doug Myhand
Construction, we provide a free lot evaluation.
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Q-9
How do I ensure I can build my house within my budget?
Develop realistic expectations by researching new homes in
your area and inquiring about the elements that interest
you. You need to get comfortable that your budget will allow
you to include the features and the space that you require.
A reputable, experienced builder will be able to provide you
a preliminary budget range based on your desired size,
layout and features. We always provide preliminary budgets
that identify this cost range to help you start at and stay
within your comfort zone. As plans progress, so do the cost
estimates. At any point, you will be deciding whether the
cost of a feature or size of an area is worth the additional
cost. Keep in mind that from the start of the process it
will likely be six months or more to complete the planning
phase and another seven to twelve months or more to build so
inflation will be a factor. Try to leave some room in your
budget for this, as well as other items the builder probably
does not include such as landscaping and window coverings.
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Q-10
How much time should I allow for the design and build
process?
The minimum time you should expect for design and build for
your custom home is five months to design and six months to
build. These numbers represent the most optimistic in both
categories and would occur only if you found a house plan
that required few modifications and was modest in size.
Obviously the larger, more detailed and complicated the
project the greater the time. An average for our projects
now is approximately six months for construction. A lot of
what happens depends on how much personal time you can
commit and how rapidly you can make decisions. The schedule
availability of the other parties involved is also critical.
Be realistic. Once you have decided on a floor plan,
completed all the revisions and worked your way through all
the details and finishes, the builder must then obtain the
necessary permits and approvals. This includes architectural
control committees for the community (if applicable) ,
building permits, utility permits and whatever else your
area requires. This can be relatively quick or very time
consuming.
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Q-11
Do I need an architect to develop my plan?
The complexity of the project should be the determining
factor as to whether you need an architect or plan designer.
Many times a builder will have a plan that meets 90% of your
needs. In that case, the builder will usually have his
agents modify the plan to meet your specific goals. The
agent could be an architect or a plan designer. Starting
with an existing plan also allows the builder to provide a
more accurate estimate of the pricing. The builder can often
provide preliminary sketches of the home you are trying to
create from existing plans he has or ideas you supply.
On more complicated and unique projects the architect is
much more critical to the process and may be the first
professional engaged. We believe that the most effective
design scenario involves both the architect/designer and
builder from the beginning.
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Q-12
Do I need a realtor to represent me?
Realtors can be of significant benefit to buyers moving into
a new community. In addition to locating builders and real
estate, they have intimate knowledge of value, schools,
growth patterns and other important community features. They
can be very well worth the fees paid. Many builders like us
have realtors represent them who provide valuable services
to both parties.
For residents who are relocating within a community and
already know the quality areas and builders, realtor
services may not be as beneficial, other than providing a
comfort level and negotiating service.
The realtor may also provide a very valuable service in
finding acceptable lots and locations for your project. The
land market changes rapidly and access to the MLS may be
critical. However, using a realtor for your lot purchase
does not require using a realtor for the build contract. It
is strictly your choice and you need to feel comfortable
with what you do. After all, buying a home is likely the
most expensive purchase you will ever make. You will also
probably be doing it several times during your life. It can
be very expensive if you make a wrong choice.
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Q-13
Do I need an attorney to represent me?
If you have a realtor and are using standard real estate
documents you most likely do not need an attorney. If you
don't have a realtor it is worthwhile to have the documents
reviewed by an attorney for any significant deficiencies.
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Q-14
What is a fixed price contract and what are its advantages?
A fixed price contract is one where the price for the
project is set at the contract signing and is based on the
items described and represented in the plans and
specifications. The price can be changed throughout the
construction process by written change orders or allowance
reconciliation's.
The advantage of this form of contract is that generally
all risk of cost increases, damage or loss is absorbed by
the builder.
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Q-15
What is a cost plus contract and what are its advantages and
disadvantages?
A cost plus contract is one where the builder charges a
markup on the costs incurred in the execution of the
contract such as many re-modeling jobs. In addition to hard
construction costs, project costs may include the cost of
site supervision, insurance, and setup. On a cost plus 15%
contract, for example, the client would be charged $1.15 for
every dollar the builder spends.
The advantage of this contract is that the client will have
knowledge of all expenses incurred and benefit from any
savings realized throughout the process. The disadvantages
are that if costs increase due to plan errors or omissions,
inflation or inaccurate estimates the client pays the
extra.
In any cost plus contract it is important to determine who
is responsible for costs due to site damage, vandalism,
errors in execution etc. It is also important to understand
what items are included as "costs" such as, supervision,
insurance, realtor commissions, etc. on which markup will be
charged.
A variation of this is cost plus a fixed fee. In this
scenario the builder establishes his fee based on the
expected costs and fixes that amount. The fee does not vary
except through written change orders. This scenario allows
the builder and owner to work together to control the costs
and provides the proper incentives to do so.
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Q-16
How can I ensure the builder's responsiveness once the
project begins?
First, check references of
any builder you are considering!!! Past client satisfaction
is a good indicator of future client satisfaction. Second,
the builder, as well as the client should be bound by a
detailed, accurate contract, that includes time commitments
which describe the obligations of both parties. There will
always be questions you will need to have answered. It is
the builder's discipline and business practice that
determines whether he returns your call in 2-hours or
2-days.
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Q-17
What selections should I expect to make?
Theoretically, you have the right to make all the selections
in your custom home. From a practical matter, you will
probably be involved in the selection of only a few of the
construction components and most of the finishes, which are
loosely defined as "all the things you can see". You should
choose a builder who incorporates as standard, most of the
features and finishes you are looking for. By doing this,
you will minimize the effort involved in selecting items
which are outside the builder's envelope. Also, the builder
won't always be saying " that will cost you extra". This can
be uncomfortable for both parties as well as being
inherently inaccurate in estimating the final cost.
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Q-18
How do the selections
get made and when?
In order to minimize unknowns and surprises during
construction, we attempt to have most selections made prior
to contract execution. Proceeding through the selection
process in a logical organized manner is essential. You and
the builder need to set the criteria and general price range
that fits your budget, then the builder can help you select
within that range. Appliances, floor coverings, countertops,
tile and cabinets are but a few examples.
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Q-19
How do I know the house is constructed to building code
requirements?
In our area a combination of licensed engineer
certifications and building department inspections provide
the assurance of compliance with building codes and engineer
designs. At each level of fabrication, an inspection is made
before the installation can be covered. Final inspections
are made at completion to insure code compliance for
electric, plumbing and heating. In addition a final building
code inspection is made which covers any number of things
from smoke detectors and step heights to hand rails, address
numbers and drainage. These inspections do not address the
finish quality of the installation, but rather the
functional and safety aspects of the home. In order to
obtain a certificate of occupancy, all inspections must be
passed.
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Q-20
What should I know about warranties?
A. Equipment and product warranties (i.e. appliances),
received by the builder, are fully transferred to the
client. The builder will not usually provide any extended
warranty related to these items.
For items not covered by these warranties Better Business
Bureau and the National Association of Homebuilders has
published a document titled "Residential Construction
Performance Guidelines". This publication identifies
"observable deficiencies", the related "performance
guideline" and the "corrective measure". This publication
attempts to reduce the subjective evaluation to an objective
measurement. This is effective up to a point. There are
always issues that arise which are not specifically covered
and like beauty, much of it is in the eye of the beholder.
When a questionable item arises, an agreement between the
client and builder will need to be reached as to whether a
deficiency exists and if so, what is a reasonable
resolution.
The inherent problem with custom homes is that they are
handmade using thousands of individual parts installed under
all sorts of conditions by varying levels of skilled
craftsmen. There is no perfect component in a home. The
question is, what level of perfection do you expect in the
home you are having built? Before you commit to a builder,
look at several examples of his existing product and
determine if you will be satisfied with his level of finish
work. It really gets down to your expectations. If your
expectations exceed what is reasonable and customary then
you need to be very explicit with your builder.
The normal time frame for warranting construction and
cosmetic deficiencies, other than product and equipment
warranties, is one year for parts and labor.
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Q-21
Who should I contact to have my utilities turned on?
A. To find out who to call in Lebanon
or Mt. Juliet to have your utilities turned on, please
click here for our
convenient list.
