LARRY MARTIN REAL ESTATE SERVICES

Building a House Building a house can be one of the most satisfying--or aggravating--activities that home buyers can undertake. The difference between building a dream house and a "nightmare on Elm Street" has a great deal to do with being certain that building a house is the right option for you and then following through with many of the details related to building a house. Some of the advantages and disadvantages of building a house: Advantages More customized to your wants and needs. All components of the house are new. Most components are of the latest design. New houses are generally built in areas of expansion rather than of decline. This will help your future resale value. May be more personally satisfying if you take an active role in the house building process. Disadvantages Generally more expensive than a resale house. The delay during time of construction. Potential "new house" problems--like anything brand new, it is rarely perfect. More complicated--finding a lot, finding a builder, getting a construction loan, etc. The added costs--landscaping, window treatments decorating, etc.--that you incur after moving in. ********************************************************** If you decide that building a house (or buying a new one) is your best option, you will be confronted with a number of choices--there is no "one plan fits all" when it comes to new houses! New house building choices: Buying a new home that is already standing or currently under construction (a "spec"--built on speculation--house). Building a house in a subdivision of new homes where a builder can give you a choice of plans. Building a house from an established plan on a lot of your choice. Building a custom built home. Finding Contractors Unless you are buying a house that is already standing or in a subdivision tract, you will most likely need to choose and employ the services of an architect and/or builder. Choose wisely. During the time that your house is being built, you will be spending a lot of time with these individuals! For those who have decided that a new home is best for their situation, Larry Martin Real Estate Services has a great program where you can get 1.25% cash back when you take advantage of his services. The Cash Back Bonus is a full one and a quarter percent of the base selling price of your new home. (Some restrictions apply) Building a house often involves compromises. Many home buyers consider building because the feel they can't find the "perfect" house in the resale market. Be aware, though, that unless you have an unlimited budget, are building on a highly adaptable lot and are a great distance from your nearest neighbors, you will have potential compromises you will need to deal with. Some examples are: Cost: What you want may cost more than you want to spend. Lot: The lot you have selected may not be able to accommodate the type of house you want to build. Building Codes and Regulations: How you want to build the house may not fit within the building codes of your locality. Neighborhood Covenants: The neighborhood in which you want to build the house may have covenants or restrictions that limit the type, size or style of the houses within the neighborhood.

Hints on Building a House Don't overbuild for the neighborhood. Having the biggest and most expensive house in the area may be wonderful for your ego, but it will be a disaster when it comes time to sell. Build for resale. No matter how long you intend to stay in the house you build, it will have to be sold at some point (which is often sooner rather than later). Never build strictly for your own needs and tastes--a 1 bedroom 3 bath house may be perfect for you, but it will be next to impossible to sell. Get the best contractor your budget will allow. When building a house, quality is usually more important than quantity. ImproveNet makes the process of finding a contractor simple, since they pre-screen firms throughout the United States. Be prepared for delays. Building a house is a complicated project and utilizes dozens of subcontractors, workers and suppliers. Delays can--and probably will--happen, and that will back up the entire process. A delay, for example, in the framing stage stops everything: electricians and plumbers are unable to do their "rough-in" work until the framing is completed. Don't lock your move-in date in stone--it may be weeks later. Monitor the progress of the house building as much as possible. During construction a lot can be accomplished--both positively and negatively--in a short amount of time. This is especially true during the framing stage. Catching a mistake early will save a lot of headaches later. Watch your construction allowances. Generally, in the total cost of building a house you will be given allowances for such items as flooring (carpeting and vinyl), lighting, plumbing fixtures, etc. Make certain that you can actually get the materials you want within the allowance amount. For example, if you have a $3500 flooring allowance and the carpeting and vinyl floors you want will cost $5500, you are the one who will have to make up the $2000 difference. These "allowance overruns" can add up quickly!

Call Larry for Help...713-825-8015