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With labor costs, materials and housings starts at recent lows, if you are considering building a new home, now may be just the right time. According to recent data on home sales in the Triangle, new sales had dropped 42 percent at the end of 2008 as compared to the previous year. This could equate in finding a deal on home that had already been started or is nearing the construction phase.

The good news is that there is still affordable real estate available in the Triangle, including the Johnston and Southern Wake county area, which will enable you to find just the right location for your new abode. The Triangle never experienced the “bubble” that most major metropolitan areas in the country faced, resulting in real estate, including land, which is still fairly priced.

There are many advantages to building your own home, but probably the most important is customization. Having the home tailored to suit your every whim is one of the most rewarding feelings you can have when the job is completed. The ability to choose things like cabinetry, tiling, counter tops, and fixtures, not to mention the size of the bonus room, carries a lot of weight for most people when trying to determine whether to buy an existing home or building their own.

Find a builder
According the National Association of Home Builders (NAHB), the first thing to do is to find a reputable builder that you have a good rapport with. Places to obtain a list of builders include your local homebuilder’s association or check www.move.com, the NAHB’s official new homes listing web site.

You should also become familiar with your local newspaper’s real estate section. This will give you a good idea of the prices you can expect, the current hot neighborhoods, which builders are active in your area, etc. You might also turn to friends and relatives for recommendations, or your local real estate agent can help as well. Make a comprehensive list of the builders you want to research.

Now, you can start contacting these builders and finding out more about what they have to offer. You will want to check the builders’ reputations, and the best way to do this is by visiting homes they have built and talking with their owners. Drive by on a nice Saturday morning and stop to talk to some of them. Most will be willing to share their experiences with you. They might also give you some advice about the area, the schools, the amenities in the neighborhood, etc.

Another tip is to look at the company’s Web site for more information. References from a friend, co-worker, or local family member are the best ways to get the inside scoop about a builder.

According to the NAHB’s Web site at www.nahb.org, you should check out new homes when you can, utilizing home shows and open houses sponsored by the builder in question. “When examining a home, look at the quality of the construction features,” the Web site says, “inspect the quality of the cabinetry, carpeting, trim work, and paint. Ask the builder or the builder's representative a lot of questions. Get as many specifics as possible. If you receive the answers verbally rather than in writing, take notes. Never hesitate to ask a question. What seems like an insignificant question might yield an important answer.”

Here are some questions that you might ask about the quality of the project, according to the NAHB: Did the project take longer than estimated? If so, what were the reasons for the delay? Did the builder communicate any problems or suggestions to you? Was the builder easy to work with? Were there additional fees at the last minute?

Communication is key
Some builders change the floor plan and don’t communicate this to the buyers, so that’s another thing to keep in mind. To reduce the chances of that happening, talk with your builder often. And if you’d like to change the floor plan, make sure you tell the builder as soon as possible. Keep in mind that some changes, such as switching from basic cabinets to customized cabinets, can result in added costs at the end of the project. Communicate with the builder about how much this change will cost before the work is completed.
Custom builders work with you to create a home specific to your needs. Once you’ve done your homework (interviewed multiple builders, checked builder references, etc.) and chosen a suitable custom builder, then you can sit down and design your home. It may be a good idea to bring any home plans that you would like to use for ideas or as a guide to your new house. Your builder will help you make modifications where necessary.

If your builder has a good reputation and solid construction processes, he will follow up on all changes and adjustments with paperwork, making sure that you understand what you are getting (pictures, examples, other home tours) when you sign off on specific adjustments. It is important to make sure the homebuyer’s expectations and the results are in line to produce a happy homeowner at the time of sale and thereafter.

Watch your budget
A good builder or contractor will help you stay within your budget. All the options, or extras (say, an oversized steam room), that you want to add should be put on hold until the basics—like land or lot size, home size, and dimensions—have been determined. Remember, it is important to stay focused on the fundamentals.
Typically, once you have settled on the design of your home, a preliminary house plan is drawn up, and you and the builder will discuss any finishes such as front and side elevations.

Using a production/spec builder is similar to using a custom builder in that you will work extensively with him or her at the early stages of home construction. However, instead of working with a builder/contractor/architect to design your home, you will choose a stock floor plan.

Rarely are stock floor plans perfect for any one purchaser, so there may be minor structural or mechanical changes you would like to make. Be sure to draw those changes on the floor plan and make copies for all necessary parties. You will also want to be sure to convey your changes in a timely fashion. If the decision to add a four-foot garage extension can be made early on, discuss this with your builder as soon as possible. Keep in mind that sometimes such changes may affect the price of your home.

One advantage of using a production builder is buying a pre-existing, or market, home. These homes are already built, have never been occupied, and can include single-family homes, condos, or townhouses. This is where some potential deals can be found now. Remember, housing starts are down, so builders could be offering extra amenities and upgrades for a song.

Another advantage of a production builder is an anticipated smooth building process because the materials are mostly prefabricated and easy to assemble. This can help keep costs down. Also, like the composer who plays the same concerto night after night, a spec builder can easily build your home, oftentimes with very little input from you. Just as with a custom builder, be sure you understand warranty issues and contract terms.
Building a custom home has become more achievable than ever before. “Custom” doesn’t necessarily mean “costly” anymore. With the help of a skilled and experienced professional, you can have that perfectly suited home in almost any budget. In the hands of an expert, that closet full of dreams can become the home of your dreams.

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