Your step-by-step guide

🏗️ Building a New Home

Building from scratch means you get exactly what you want. But it also takes longer and has different challenges than buying existing. Here's everything you need to know.

Two Ways to Build

Production Builder 🏘️

Big companies building entire neighborhoods. They have set floor plans you choose from (like picking from a menu).

Good Things:

  • Faster (4-6 months typically)
  • Usually cheaper per square foot
  • Less decisions to make
  • Builder handles everything

Trade-Offs:

  • Limited customization
  • Upgrades can be expensive
  • Cookie-cutter neighborhoods

Custom Build 🎨

You buy land, hire an architect, hire a builder. Design your dream home from scratch.

Good Things:

  • Total control over design
  • Exactly what you want
  • Unique property
  • Choose your location

Trade-Offs:

  • Takes 12-18 months or more
  • More expensive overall
  • A million decisions to make
  • More things can go wrong

Which Should You Choose?

Go Production if: You want to move in soon, want less stress, and can find a floor plan you like. Go Custom if: You have unique needs, love design, have time to spare, and have a bigger budget.

The Timeline (Production Builder)

Months 1-2

Choose Lot & Floor Plan

Visit model homes, pick your lot location, choose floor plan, sign contract. Put down deposit (usually 5-10%).

Month 3

Design Selections

The fun part! Pick flooring, countertops, cabinets, paint colors, fixtures. Bring a friend - it's overwhelming.

Months 4-5

Construction Begins

Foundation poured, framing goes up, roof installed. Visit weekly to check progress (take photos!).

Month 6

Finishing & Closing

Drywall, flooring, painting, fixtures. Final walk-through, punch list of fixes, closing day!

⚠️ Reality Check: This is the ideal timeline. Delays are super common (weather, supply chain, inspections). Always add 2-3 months buffer to your plans.

The Money Part

Construction Loans (Different from Regular Mortgages)

With a new build, the house doesn't exist yet, so regular mortgages don't work. Instead:

Builder Financing (Easiest)

Most production builders have their own lenders. It's usually the smoothest process because builder and lender work together. Sometimes they offer incentives like paying closing costs. BUT - compare rates with outside lenders to make sure you're getting a good deal.

Construction-to-Permanent Loan

This is one loan that covers both construction and your permanent mortgage. Benefits:

  • Only one closing (saves money on fees)
  • Interest rate locked in from start
  • Automatically converts to mortgage when done

Cost Breakdown Example

Base house price: $350,000 Lot premium (corner/cul-de-sac): + $15,000 Upgrades (see below!): + $35,000 Closing costs: + $10,000 Total you'll pay: = $410,000

This is why upgrades get expensive fast!

The Upgrade Trap (Important!)

Builders make a LOT of money on upgrades. The design center is exciting, but you can spend $50,000 without realizing it. Here's how to be smart:

Worth the Money ✅

  • Structural changes (bigger garage, extra windows, different layout)
  • Pre-wired tech (ethernet, speakers, security)
  • Flooring upgrades (hard to change later)
  • Kitchen cabinets (expensive to replace)

Do Later 💡

  • Light fixtures (easy to swap yourself)
  • Bathroom mirrors (overpriced!)
  • Fancy faucets (buy on sale at Lowe's)
  • Landscaping (hire local landscaper for less)

The Golden Rule

If it's built into the walls (wiring, plumbing, structural), pay the builder. If you can change it with a screwdriver, do it yourself later.

What to Watch For During Construction

Visit your house weekly (if allowed). Take photos at each stage. Check for these things:

Foundation Stage

  • Level and square (ask builder to show you)
  • No cracks after it cures
  • Proper drainage grading around house

Framing Stage

  • Windows and doors in right places (measure!)
  • Room sizes match floor plan
  • Outlets where you need them

Final Walk-Through

This is your chance to make a "punch list" of things to fix before closing:

  • Test every light switch, outlet, faucet, door
  • Look for paint touch-ups needed
  • Check all your upgrades are included
  • Run water everywhere (check for leaks)
  • Bring a friend - four eyes are better than two

Your Warranty (Keep This Info!)

New homes come with warranties. Typical coverage:

1 Year

Workmanship & materials (cosmetic issues, appliances)

2 Years

Systems (HVAC, plumbing, electrical)

10 Years

Structural (foundation, framing, roof structure)

💡 Pro Tip: Make a list of any issues in months 11, 23, and before year 10 ends. Schedule warranty walks with your builder before coverage expires.

Ready to Build Your Dream?

Let's discuss new construction options and builders in your area.

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