The Builder

Find a builder you can work and feel comfortable with, you will be spending several months talking with your builder possibly on a daily basis. The builder you want to go with doesn’t always have the best price, you have to make decisions and yet throughout the building process there will be many. I would suggest that you get references from the builders who are quoting your project and go and look at their work. I believe quality is in the small details so pay attention even though the overall appearance may look great.  Obtain three quotes so you can compare prices and ask these builders for break downs on their quotes which helps with the cost comparison. Often builders will provide allowances for the big ticket items such as kitchens, windows and flooring; they often have suppliers that they send you to for product selection. While a builder has provided an allowance for a certain ticket item you may find a product that exceeds that allowance which means you will pay the difference and visa versa if the product is cheaper with the builder giving you back a credit. I strongly recommend that you never tell a builder how much you have to spend and let the builder make the first move by giving you his quote.  

The building process is an exciting one and watching your ideas jump from paper into reality has always been a fascination of mine. So make sure you have the design you want and not what someone thinks you should have.

Permit and Inspections

Once you are pleased with your house design and working drawings are complete and you have a quote from a builder that is within your budget, then the next stage is to obtain a building permit.

The permit stage is an important process which I think is added insurance for the owner as the professionals who review the plans are well versed in the building code.

A plan review is done to ensure that the building meets all the requirements set out in the building code. In short no one wants a building to fall down or fail due to improper building practices. Once the review has been approved then a permit is issued to begin construction.

During construction a building inspector is called upon to review various stages to insure good building practices. An occupancy certificate is then issued once the building inspector has made the final inspection. By now the moving van is at your new front door and the movers are unloading all your personal belongings.

Financial and Legal

Most lending institutions provide financing in one form or another. Banks will not lend for raw land but will if the intent is to develop a structure or renovate. There are many ways to finance property. I renovated a house several years ago and made the mistake of letting the bank dictate the way it was financed. The bank proposed construction draws which meant that at certain stages of construction a proportion of the allotted amount was available.  It didn’t help in my case as I knew the trade professionals and wanted to pay them once their work was completed, the banks method of finance didn’t allow me to do that. I should have acquired a line of credit, freeing up my cash flow and then mortgaging the house on completion.

Financial Calculator

We cannot get rid of lawyers! They do however provide a valuable service.  Lawyers register the deed to a property along with the surveyor’s graphic and written description (meets and bounds or legal description). They also formalize the mortgage papers between you and your bank and the sale of the land between both parties. Because a new home is perhaps the largest investment you will ever make, it is always best to hire a lawyer for his or her expertise.