Think about it, the next year will go by anyway, so why not start setting some goals to get into your dream house now? It's probably more do-able than you imagine. If you break it down into 5 steps you'll see it's not so hard.

The first four steps are just a matter of shopping. You can do that! You've been shopping since you were old enough to reach the candy counter. You can do the first four steps in order or all at once. The important thing is to get started.

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1. Shop, shop 'til you drop. Researching the market!

You don't need to be "serious" to shop for a home. Every home owner was once just a "looker". The good news is that Real Estate people expect this. Real Estate Professionals in our area know that 7 out of any 10 "shoppers" are actually just looking. This means that seeing 7 people who are just looking gets them closer to the 3 who will buy, so they are glad to see you! They also know that this years looker can be back as next years buyer.

More good news is that Real Estate people are really nice folks, (unlike some other sales people whom we won't mention) selling homes is not a "high pressure sales game" because one sale can go a long, long way, and each sale needs to be a really, really good fit between home, seller and buyer.

The bad news is that the real estate broker is working for the seller not the buyer. Remember this, it's really important! Repeat after me, "the real estate broker works for the SELLER not ME" . Therefore, they will be putting a positive spin on everything to make that sale. However, every home buyer will probably be back as a home seller in the future and a good broker or builder wants your business in the future. Most people actually do buy and sell several homes once they get past the "first home" hurdle.

Now you're convinced you don't need to be shy about home shopping, where do you start? The Sunday classified for the area you want to buy in is probably the most comprehensive and first place to look for listings. Many areas have "Real Estate Listing" shows on TV (usually on Sundays).

Don't be put off by the term "development". A planned community is a good place to look at a builder's work and a good indication of the real value of housing in your area. Bear in mind that a builder who can build homes in greater numbers must be doing something right.

Go to every "Open house" you can find. While it's not a good idea to take the kids home shopping for existing (occupied) homes, you can take the family to view model new homes, if your kids are older and well behaved. Looking at new homes can be an exciting adventure for kids and educational as well.

The key here is "well behaved", you'll need to set guidelines about behavior and respect for other peoples property. Most kids by junior high (some even younger) will really have fun playing the "what if we lived here?" game and picking out their new room. If you encourage kids to be critical shoppers and point out draw-backs as well as advantages they can be experts at spotting flaws you may not have noticed while the seller was distracting you. Give them check lists to look for water stains on ceilings or basements, peek at condition of floors under rugs, etc. Kids may notice things you've overlooked, like the 357 cats living next door.

Drive around the neighborhood after each viewing, to check for other good and bad points. Remember the three most important things in buying real Estate are Location, Location and Location.

Do your homework so you know what your looking at-- read as much as you can about construction, especially if this is your first house. 

2. Shop for $$$$ How much will it cost?

Now you have to do your homework and check out all the numbers. You may want to ask the loan officer or someone with more financial know-how to help explain the terms and go over the numbers with you. You'll need to check on your own credit rating to make sure there are no problems that need to be cleared up before you apply for a loan.

You also need to start assembling all the documents you'll need, such as your tax returns back to the civil war, (well, almost). Now you know why your mother told you to never throw out anything. While some people enjoy the "challenge" of all this financial paper work, most of us dread it. However, you should think of this as a sort of "trial by fire" or a test of your fortitude, designed to weed out those who really, really should not be home owners. Buying and especially building a home is just the beginning. Once you're a homeowner you'll need to be resourceful, resilient, financially savvy and able to deal with emergencies in a single bound. Let's face it this may not be for you! Perhaps it will be later.

If you find you can't afford as much house as you'd like, consider "sweat equity". This means doing some of the finish work yourself. How much you do depends on how handy you are, how much time you'll have, and how much stress your marriage can tolerate. Be honest on this, living in a half finished house with small children can become a nightmare. If you have a two career marriage you'll need to consider the benefits of paying professionals to do the building.

Also be sure to ask your mortgage provider about "unfinished houses" and just how much they'll trust you to do for yourself. Their policy may to restrict you to unfinished upstairs, or future family room in basement and require at least a minimum amount of finished space. They want to lend money on a property which can be resold if you don't finish it. Farmer's Home and other government lenders have strict guidelines for finishing off the property.

There are home building classes for do-it your selfers--even "camps" where you can spend your vacation learning the basics. You may not want to do it all yourself, but at least you'll know what's good construction and what's not when you go shopping.

You might even consider volunteering for Habitat for Humanity project in your area. Its a great learning experience, you'll be supervised by experts and you might even meet a super builder there.

You'll find Habitat for Humanity on our list of useful links for home buyers and builders

3. Shop for plans for your dream.

Some plans will stand out and you'll keep referring back to them. When you've a rough idea of what style you want and what size home your budget allows you'll need to decide on the route you'll take to final plans.

If your budget is generous and your requirements are very unique (you may want a work of art to live in, or you're building on the side of a cliff) you should consider an architect registered in your area who is familiar with your local codes and conditions. If you have already decided your Uncle Harry will be your builder and he has plans you like, go for it.

Many Builders will offer "free plans" as part of a package deal. You won't get detailed plans to shop around with, and you may even be getting into a vague open ended project where your builder is thinking of one house and the one you expect get is a world apart. This is, of course, is a scenario for disaster. Remember the old adage that "you get what you pay for" and your "free plans" could be worth exactly what you paid.

If you've chosen a specific development you may be tied to the builder, but with competitive markets even large volume home builders are much more accommodating to customers then they used to be. Be sure to ask about custom options, special design changes you'd like, or even if they will design a custom plan for you.

Another option is a "stock home plan" from a plan service such ours, CADSmith Studio . If you find a stock plan which only needs a few changes your builder will probably be able to accommodate you for no additional charge. See our Portfolio of Plans for ideas.

We also do Custom Architectural design at very reasonable rates. While not "registered" architects, our home designers have specialized in home construction for many years may have extensive experience and knowledge of the requirements of home builders and buyers. We work directly with design/builders so we get a lot of feed back on what's cost-effective and what isn't.

4. Shop for a builder

After a while you'll probably find several names keep coming up. Call them, ask for recommendations and addresses of homes they have built and are currently building. Also ask about scheduling, when they might be able to start your job. The guy who can start tomorrow may not be the best choice. Why doesn't he have other work? A good builder can't sit around waiting for your job, he'll have other work in progress. It's more realistic to think in terms of 3 to 6 months from now, allowing time for plans, mortgage approval and estimates. (More on Scheduling later)

You can tell a lot about a builder from the condition of his current jobs: do things look well organized, clean, and professional? Are his trucks and equipment well maintained and the workers diligent, Or is everyone goofing off and making do with minimal, shabby, poorly kept equipment? Are job site materials stored and secured well or thrown around?

Drive around and kibitz at local job sites to see how the builders seem to be handling their jobs. Summer's a great time to scout out builders. If you see neighbors out in the area, stop and chat, tell them you're thinking of hiring XYZ builders (who are working on that new house down the street)--see what they say. You can bet they been watching the progress of the job. Ask if the job is progressing well or subject to long periods of inactivity? This is important because once you start building you're tied to the project and paying for your current housing. Long delays in construction can be financially draining.

You should narrow your "short list" down to three or four builders. Once you have a plan the builders can give you a better estimate of the cost. There is a trend in some areas to charge for estimates, but estimating has traditionally been part of the cost of doing business and you should consider whether the builder who charges for estimates is in fact earning a living by building houses or by giving estimates. The estimate should be in writing, should reference your plans and list all areas and materials covered from site preparation, wells , septic, utility hook-ups, to finished house and landscaping.

Estimates may also include some 'line item options" you've asked for such as doing the painting or landscaping yourself for sweat equity. Don't expect to see an item by item cost list of every, fixture, window and door. And remember that estimates are "proprietary property" of the builder and should not be discussed or shown to other builders. Some builders may even ask you to sign a "non-disclosure" document. Estimates generally are guaranteed for a minimum time, after which there may be some cost adjustments, usually not major changes.

The builder you chose may not be just the cheapest. If two builders come in very close to each other and the third is way low, you should question whether he's overlooked something or is perhaps going to cut corners you don't want cut. You should also be sure that the builder you choose is someone you'd like to do business with and can trust and talk to. Rare is the new home buyer who doesn't experience some trauma during the process and you really need to be sure you can work with these folks.

5. Now You Can Do it!

Sit down and write your building schedule:

A. Work out a budget covering Plans, deposits, mortgage, closing costs, moving costs, insurance and everything else you covered in step number 2. Better to overestimate than indulge in wishful thinking.

 

B. Pick a plan or work with a designer on the final plans you started developing in step number 3.

 

C. Give your plan to at least two, preferably three builders for a firm, written estimate. Then choose the one to go with as discussed in step 4. You may need to put down a deposit on a house lot or land at this point, but it should be refundable, contingent on receiving your financing, and will apply to your down payment.

 

D. Take your estimate to the bank or mortgage provider you choose in step 2. Be prepared for your friendly banker to turn into a nit-picking, hypercritical stranger, who's going over your finances with a magnifying glass. You'll probably need to put some cash down at this point, and it's non-refundable. This can vary with the current housing market and availability of money.

You must be philosophical about the possibility of losing this money. Losing it may, in fact, save you from a financial disaster you could ill afford. However, if you've done your homework and gone over it all with your mortgage lender, you'll both have a pretty good idea by now of what you can and can't afford. Be sure to keep in touch with your builder during the loan approval process, he needs to know if there are any delays, and of course as soon as approval comes in.
 

E. Get plenty of film for your camera so you can start an album of "Our House" when the interminable wait for mortgage approval is over. Now everyone shifts into high gear. High points include: ground breaking, finishing the foundation, Framing the first floor--when you'll actual get to walk on your floor! Framing the walls and framing the roof, seeing the kitchen cabinet installed, etc.

At CADSmith Studio our associates offer the experience and skill for your design, drafting, and graphic needs. Check out our list of useful links for home buyers and builders. We include links for enjoying the holidays, decorating and landscaping your new home.

This information page got a little longer than planned. Hope you found some useful ideas and inspiration here. We'd like to hear your ideas and comments on our Web site, please e-mail us at:

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