Getting Things In The Right Order

Getting Things In The Right Order

Go in order, then break each piece down

Get things in order from the start:

  1. Get loan pre approval or establish a feasible cash budget based on an amount you can afford OR WANT TO SPEND. No need in wasting your time on something currently unattainable.
  2. Look at some basic plan ideas - familiarize yourself with common layouts and designs. You’ll want to have a basic understanding of this.
  3. You can go see a builder even if you don’t have land or a specific lot in mind. The builder can help steer you in the correct direction. Do not rely on your real estate broker for this! The builder will have more experience.
  4. If you do have a lot in mind, go see the builder and ask questions.
  5. Questions to go over with the builder may include:
    1. Will this house plan fit in my budget with sufficient funding remaining for a lot?
    2. If so, how much can I spend on a lot?
    3. If you have a lot you like, then how much do I have left to spend in the house?
    4. Is the lot buildable? 
    5. Are there building restrictions with this lot?
    6. Do I have to invest in land improvements for it to be buildable?
    7. If there is a certain neighborhood you like, ask the builder more about the HOA requirements and the effects they have on the cost of the house. Familiarize yourself with what is expected from you to live in that neighborhood. 

Plan pitfalls:

  1. The plan is not realistic for the budget.
  2. SPECS! Compare apples to apples.
  3. It was drawn by someone who does not price houses (or they are paid a % of the cost of the house). Neither is helpful.
    1. Examples of problems: too much square footage, huge footprint, a lot of varying roof lines and/or walls, expensive roofs, a lot of covered porches, side-loading garages that require more concrete, wasted space from garage space to nooks and tiny rooms that can’t be used, steel beams are needed bc the walls aren’t stacked correctly to carry the load of the upper levels of the house, inefficient flow causing more jigs and jogs that drive up the cost by more framing lumber, drywall, unnecessary windows and doors and sometimes those doors in tiny spots are pocket doors and those are more expensive and it all means more labor costs too.
  4. The plan doesn’t fit on your lot.
  5. It won’t get approved by your HOA.
  6. It has 2nd living areas that are not approved by the HOA or zoning in your town/county.
  7. It isn’t great for the elevation of your lot.

Lot pitfalls:

  1. It is not buildable due to wetlands - there is a lot of red tape with this issue.
    1. Story of Hardens?
  2. It’s in a flood zone 
    1. Renovations:
      1. Crawlspace issues
      2. Water pooling on the lot
      3. Flood insurance is expensive. It can be more than your house mortgage
    2. New construction
      1. The foundation of your home has to be 1-2 feet above the flood zone. That is an extra cost to the foundation. You may still need flood vents in your garage.
      2. If it’s really low, are you okay with your cars getting exposed to water?
  3. The lot prep is expensive
    1. Requires a lot of fill. There are holes, it is lower than the road and/or your neighbors.
    2. Requires a lot of cost in clearing.
  4. It has easements and encumbrances that don’t fit with what you want.
  5. In rare instances, it doesn’t have a clear title and the one who is selling it doesn’t have the right to do so.
  6. It is not zoned for what you want to do.
    1. Building the garage apartment before the house.
    2. Two living spaces.
  7. The house won’t fit bc of the septic. 
  8. The septic required is too expensive, it’s shared, etc.
  9. The house has to sit far back on the lot driving up the cost of the driveway and landscaping.
  10. It requires an expensive well or city tap is more expensive than you thought.
  11. If it’s a renovation, the city/county will require you to bring certain things up to code.

Key takeaways:

  • Get pre approved by your lender or establish the budget you want if you’re paying cash
  • Pick out some rough ideas for plans
  • Go see a builder
  • Don’t buy a lot without consulting a builder
  • Be prepared to pay the builder for his or her time especially if they are drawing plans