Save Thousands When Building Your New Home | Great Building Experiences- watch to the end to see how

my name's Jason I've been in the home building industry for over 25 years and what I want to talk about in this video is the building experience and the building process so I've seen a lot of different questions a lot of different issues a lot of different experiences that I've had where I wanted to take basically all of the the knowledge and the experience that I have and put something together that can help guide you through the process in this webinar we're going to cover everything from construction loans and how they work how to find a lot how to choose your Builder the questions to ask your Builder how to compare the Builder's pricing comparing Builders floor plans going over the selections process and when that needs to take place understanding the construction process and what to expect during the construction process so one of the most important steps in the building process is choosing your Builder choosing the right Builder is definitely complicated there's a lot of things that you need to look for how to compare the builders how to know what one Builder uses in their home compared to another what questions to ask the Builder where to get reviews on the Builder so there's a lot of different things that we will really get into in the course to kind of make sure you fully understand how to compare Builders and how to break them down and ultimately how to choose the right one if you choose the right Builder it can give you a great building experience but if you choose the wrong Builder you could be in for a bad experience so many people don't know what the differences are between Builders or that there are even differences between home builders all home builders do things differently they each use different ingredients they have floor plans that differentiate from the other and all of these things go into one Builder being better than another or one Builder being more expensive than another so if you meet with two Builders and one Builder gives you a price that's forty thousand dollars more than than the other Builder well why is that we're going to go through how to break down the builders how to compare them with the blueprints with the materials that they use with the pricing that they give you that's something that we're going to dive deeper into with the course for example you may go into a builder's model and that Builder tells you that it's going to cost five hundred thousand dollars to build that home you go into another builder's model and they tell you it's going to be 550 000 to build that home but they're both the same price they both have somewhat of the same finishes so what are the differences one of the biggest things that you don't realize when you go into a builder's model and a lot of times it's because you're distracted by the finishes that they have in the home the decorating that they have in the home but one Builder's home may have more windows than the other it it may have taller ceilings than the other there may be more bump outs or Foundation Corners than the other Home has and all of these these things go into one Home Builder's price being more than the other so it's not necessarily that this one Builder just charges more than the other their home plan may be more expensive to build the materials that go into the house are the same thing one Builder may use a single hung window and they may run drywall returns into the window the other Builder may use wood trimmer on the windows and they're double hung windows will cost more to do wood trimmer on the windows and to have a double hung window then the single hung window with drywall returns so there's all of these little things that I'm going to show you how to compare and break down so that when you get pricing when you go into a builder's model you're going to know exactly what to look for and how to break everything down over the years in this industry I've had a lot of stories from customers customers we didn't build for that had bad experiences I'm going to give some examples of what the those are and again in the course we're going to Deep dive into how we're going to avoid this and be able to identify these certain types of Builders but over the past five or six years I've had not once not twice but three times I've had somebody contact me because their Builder that they chose wasn't able to finish the home that they started the reason for that is the customer chose the Builder this particular Builder Drew more money than they should have in the beginning of the build process to pay themselves and to pay for other jobs that they had going on and they weren't able to finish the home so they went back to the customer and said I'm going to need more money in order to keep building your house now the customer agreed upon a price with the builder in the beginning it was a fair price all of the money was set aside into an escrow account and the Builder was the one that was irresponsible took that money that he shouldn't have to pay for things that were going on with other jobs or to pay himself now this isn't the easiest thing to avoid but there certainly are things that can be done to kind of double check your Builder you can talk with references one of the biggest things is probably to speak with the bank that you're using or other local banks if this particular Builder has had bad experiences and have has done this to other customers in the past a lot of the lenders around town are going to know about this you can speak with vendors that Supply Lumber and other materials and ask hey this Builder that I'm thinking about using does he pay his bills on time or not and they're going to be honest with you and tell you and that's those are just a few of the things that we'll get into on how to avoid somebody like that but one of the biggest things that you're going to be able to do that we'll Deep dive into is understanding the full cost that the Builder gives you so when a builder gives you a pricing sheet right rather than just looking at the total and seeing some of the finishes that are included there you're going to be able to go through this worksheet and you're going to know hey I don't see this for site improvements or I don't see that for this particular thing that we talked about so even if you do end up picking a not so great Builder you're still going to be able to give yourself a good building experience because you're going to have the know-how on what to look for and how to verify the pricing that the Builder's giving you one of the other things we want to avoid is your home's getting built you're walking into the home and something doesn't look the way that you thought it was going to look way back when when you met with the Builder and his model and you told the Builder I want this and the Builder said okay yeah no problem it's going to be in there now the house is being built and it's not in there how do you avoid things like that well Blueprints and and learning how knowing how to read the blueprints and double check the blueprints to make sure that everything you've talked about with the builder is shown on the blueprint a really good rule of thumb to know is that if something's not shown on the blueprint or if it's not called out in your building contract or if it's not listed on the selections form it's not going to be in the house so if you talked about doing a tray ceiling in your master bedroom but your blueprint doesn't show it the tray ceiling is not going to get built and once the house is already framed up it's almost impossible to go back and fix something like that without you the customer having to spend money so this is one of those areas that's going to save you a lot of money if you know what to look for and you know how to look at the blueprints and verify that everything that you discussed is there and if it's not there you can bring it to the Builder's attention and make sure the plans are changed to get the right information on the print so that way you avoid walking into your home expecting to have a nine foot ceiling somewhere and you're only getting an eight foot ceiling the plan didn't specify what it was supposed to be and so it just got built the way that somebody thought it should and now to change it it's going to end up costing a lot of money so there are definitely ways that we can avoid issues like this some of you may have heard the term hidden cost or I built the home with the builder we agreed upon a price and it ended up being fifty thousand dollars more than what he told me it was going to be this this is something that I hear all the time and a lot of it can be avoided with knowing how to verify the price so these hidden costs are typically things that happen during the site Improvement stage so if you're somewhere where you're building a home that's going to have a basement if the excavator goes out to the site and he digs a hole and he finds out that there's soil problems and he has to dig deeper than normal and fill in some of the hole with stone that's going to cost you a whole lot of money now there are ways to avoid that you can have test holes dug at the site before the excavator starts so you know if there's going to be soil issues or not and if so you can build that money into your construction loan that would be one way to avoid a pretty big hidden cost and a lot of those hidden costs are costs that you have to pay out of pocket when you go and you close on your construction loan you're all in you think you've got everything planned for and accounted for you're putting down a down payment the last thing that you want to do is be getting hit with these overages from the Builder where you have to pay money out of pocket to keep the home moving along the other thing that can take this problem away is when you're buying the lot and this is something that we'll get into in the core course as well but when you're buying the lot you can place contingencies in your offer that will allow you to check for soil conditions and other things that may end up being huge expenses throughout the building process the sewer for example let's say you're looking at a lot that that has sewer and the listing says that the sewer is there when you go to build the home and the excavator is going to do the work of hooking up the sewer to the house we find out the sewer is on the opposite side of the street so they have to cut open the road they have to bring the sewer across the street and they have to bring the sewer to the house in many cases that can cost 20 25 000 if that's not accounted for in your building contract that's an expense that you have to pay out of pocket now what if you don't have that money is the Builder just going to stop until you can get the money to move forward that could really be a big problem and this is something that can also be again discussed covered when you're purchasing the lot a contingency can go into the lot offer so that you and the Builder can do due diligence to find out exactly where the sewer is and what the expense is going to be to bring sewer from where it is to the house it may be too great of an expense where you say you know what this lot's not worth it we're going to pass on this one and we're going to buy another one and you just saved yourself a lot of money by doing that now that we've talked quite a bit about choosing your Builder avoiding hidden costs things of that nature again those are the big money saving items that we're going to dive deeper into we're going to talk about some of the uh the smaller things like a construction loan and how a construction loan works a lot of people don't realize that a construction loan is a type of loan that you get and you close on before the home build takes place so you agree upon a building amount with your Builder that gets turned into a building contract and the amount for that building contract goes into an escrow account at the bank the Builder throughout the build process is going to draw from that escrow account four to five times throughout the process the first draw is going to take place after the initial site work is done so the Builder is going to draw money and you're going to sign off and say that yes this work has been done so the Builder can't just take any amount amount of money that he wants whenever he wants you're going to be approving this the Builder is going to take a draw to pay for that initial site work and the contractors that participated in that initial site work the second draw typically happens after the framing has taken place so the Builder can pay for the lumber can pay for the framing labor the third draw is going to take place after the rough Mechanicals are done in the house so after the rough plumbing electric HVAC is done in the house Builder can pay the contractors for the work that they've done the fourth draw is typically going to take place after drywall has been completed and then the fifth draw is going to take place when the home is completed one little tip with construction loans I've heard a lot of questions asking if you can use your land as collateral so different banks are going to require you know five to ten percent or maybe even 20 percent down of whatever your total build cost is if you own your property so say you own your your lot it's worth a hundred thousand dollars you don't have any payments on it you own it free and clear the bank is going to be able to look at your lot give it a value of a hundred thousand dollars and that can count towards your down payment and that might even cover your entire down payment even if you purchase the lot and you're still making payments on it and you don't own it free and clear say you bought a lot for a hundred thousand dollars and you still owe sixty thousand dollars so you've got forty thousand dollars of equity in the lot the bank can look at that forty thousand dollars and use that they can count that towards your down payment so that would be forty thousand dollars less that you would have to put down so if you do own your property already that's just something that's good to know that you can use that and count that as part of your down payment finding a lot is another part of the building process there are many different ways to go about this you want to make sure when you're looking for a lot and finding a lot that you know what the Improvement expenses are going to be you want to know that your home is going to fit on the lot you want to know if there's any cost above and beyond the norm you want to kind of know everything there is to know about the lot if you choose the wrong lot or you don't know everything that there is to know about the lot that you're buying it can give you thousands of dollars of unexpected expenses in the course we're going to really dive deep and go over all the contingencies every single little thing that you need to look for so that you're fully protected before you purchase the lot finding a floor plan this can definitely be a crucial step with the building process you want to choose the floor plan that has everything that you want in it but at the same time you don't want it to be out of whack with where your budget is there's a lot of different resources for finding plans including the different builders that offer plans online sites that offer plans but you want to make sure you're getting a everything you want in the plan and still keeping it cost efficient a lot of times people will pick a plan it's got everything that they want but they didn't know what to look for in the plan now it gets priced out by the Builder and it's way more than what their budget allows for and they've lost a good one to two months of just waiting for plans and pricing to come back and now you've got to start over so we'll dive in to how to avoid this how to compare plans and how to pick the right one for yourself selections is another big part of the building process this is something that you're going to want to do in the beginning if you can choose all of your selections in the beginning the Builder can order things quickly and right off the bat a lot of Builders don't start the selection process until the home is already started you're choosing the garage doors you want but now there's going to be a six month lead time until they come in so they're not going to be installed until after the house is done this is going to cause huge delays with your home so so doing your selections knowing how to do the selections what to look for with the selections can help your Builder build your home a lot quicker another important part of the selections process is ordering so if you know what you're going to be choosing in the beginning and the Builder can order it sooner rather than later you can avoid cost increases with the way that everything's going these days the building prices on all materials continuously rise so if you can order your cabinets now as opposed to two months from now you're going to save yourself a lot of money so there's a lot of different ways to verify the pricing there's a lot of different things to look for that'll be something that we Deep dive into I'll give you a builder breakdown of how and what to look for when it comes to all of the expenses that should be in your build pricing last but not least what to expect in the build process so there's going to be things that happen no matter what but even if you've looked at the blueprints thoroughly you've done your selections you've verified the Builder's cost there's going to be things that come up there's thousands and thousands of pieces getting put together by lots of different contractors so there's going to be little things that come up so just know that this is something that can happen just know that you know maybe you you end up having a broken window a window comes broken or or maybe you walk into your house and something was framed improperly if you can understand that these things are going to happen and and then you know what to look for you can bring these to the Builder's attention and these things can get taken care of it's going to help you avoid a lot of stress throughout the building process so just know there's going to be delays there's going to be mistakes that are made but we can move past that we can get to where we want to be and give ourselves a great building experience I hope this video helped you to be able to identify some of the things to look look for in the building experience we're going to Deep dive into every single one of these issues we're going to provide checklists and forms an overview to follow along with try to make this course as affordable as possible it's going to be less than the cost of one of your bathroom faucets and I can guarantee that this course is going to be something that's going to save you thousands of dollars it's going to save you time and it's going to save you stress so for everybody that watched this webinar we're going to offer a discount with the course so if you go ahead and act on getting that course that's something that you can take advantage of thanks so much for your time take care

Channel: Jason Lawrence

Views: 7,837

Keywords: Build new home for less, home building prices, new construction cost, cost to build a new home, gc my home, find a home builder, building a forever home, how to build a house, home building process, home building step by step, step by step new construction, how much to build a home, home building cost

Id: l3k9tJvp0m4

Length: 19min 14sec (1154 seconds)

Published: Wed Feb 01 2023