Metro Detroit


November 01, 2015


When considering building a new home, it’s easy to get overwhelmed and confused.  We run into this concern on a fairly regular basis with clients – and it’s completely justified.  Unfortunately watching DIY TV isn’t a real solution to understanding the process.  That’s where the New Home Experts come in!You want to build a new home.  You love the open & modern layouts, low maintenance materials, energy efficiency, and best of all you love being the first person to use your toilet seat.  The problem is you have no idea where to start.  Do I have to pay cash for the land?  How do I find the right floor plan and get permits approved?  What contractors do I use?  What are the steps to building?  What permits are required?  What’s a variance?

We’re here to explain.  There are 3 basic ways to tackle the home building process:

  1. Manage the project yourself
  2. Work with a custom builder (and the New Home Experts)
  3. Work with a production builder (and the New Home Experts)

1 – Manage the project yourself:  I’m just going to say don’t do it.  Unless you have all the time in the world due to unemployment, you’re paying cash for the land & build, and know a LOT about all aspects of construction – don’t even try it.  It can be done (and you’ll save roughly 20%) but it’s going to take tons of time, money, and energy.  The typical person just doesn’t have the time or knowledge and it’ll be a disaster.  You’ll wish you paid a little extra to have a professional do it.

2 – Work with a custom builder:  Typically for buyers who want more flexibility in design, hiring a custom builder can work out well.  Custom builders aren’t as rigid as a “production” builder and can make changes like customizing the plan, using different materials, and building “on your lot” or on an individual parcel we find.  Custom builders are very hands on.  You’ll often interact with the builder-human him/herself directly and they’ll use their preferred trades they trust and do the job well.  Once your lot, plan, and specifications are finalized, your builder handles managing the project for you leaving time to do things like work and spend time with your family.  Custom homes are often financed with lender funds.  Some of our preferred lenders offer a one-time close and loan the entire amount of the estimated build AND vacant land with as little as 5% down…as long as your builder is qualified and approved for their construction loan program.  It’s a great way to build.  Contact us to find out more!

3 – Work with a production builder:  Often times the most cut and dry of the options, production builders offer a set amount of floor plans in various communities.  Rarely is floor plan customization an option, and buyers choose options based on a specified “popular” list of options available.  We’ve found (in most cases) the production builder route works best for most buyers.  Even though customization typically isn’t available, production builders offer more of a “one size fits all” approach and it works just fine for most buyers.  Second, their team of construction managers works with you throughout the entire process – often time a front end construction manager, back end manager, and after-close (warranty) manager.  This ensures your participation in the process (if you’re interested) and offers the peace of mind you have a qualified team managing the process.  Last, and probably one of the best features of the production route; all you need is a lender approval for the total purchase price and a small earnest money deposit to get started.  Based on your approval commitment and purchase agreement the builder takes the risk and finances the build.

Whichever route your choose – it pays handsomely to have a knowledgeable asset on your side guiding you through the process;  offering un-biased feedback and advice on which builders are good, where to find a parcel of land, which lenders work with new construction, and what selections to go with.  The New Home Experts have been through the process hundreds of times and can navigate you through the process..and even take care of selling your current home quickly!


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