You are probably thinking, ‘Wow, this is a long process!’ And you are right. If you really do your homework, this will take some time up front. However, do keep in mind that a carefully chosen home builder will reward you with an enjoyable home building experience and a beautiful, well built home to enjoy forever – while a poor choice will result in nothing but a stressful process and headaches for many years to come.

Why Should I Interview My Top Two Home Builders?

The reasons to personally interview a builder can be thought of in two basic categories.

1. The first is to ask technical and logistical questions to understand how a builder approaches a home building project.
2. The second is to gain a sense of your trust in the builder and their ability to work with you and not just for you.

Home Builder Interview Sheet

For your convenience I have provided another interview sheet to help you organize the home builder interview process. Download this form to help guide you through each builder interview.

Schedule the Interviews

When you call each builder to set up your meetings, take note of how responsive they are to your call.

• Was their office staff friendly and helpful?
• Did the home builder personally call you back to arrange the meeting?
• How flexible were they about when and where you would like to meet?
  • Remember, you will have many meetings during construction of your new home and the builder should be flexible to try and accommodate your schedule, not theirs.

Getting Started

Begin the interview by introducing yourself and describing the general needs of your new home. There is no need to go into specifics here, something simple such as:

• “We are looking to build a four bedroom/3 bathroom home around (some general area of your town) and I would like to ask you a few questions.”

Then, explain the process you have already taken of narrowing your builder candidates and researching their past clients.

• Be sure to note their reaction to this process. A quality home builder will applauded your efforts and should show no sign of irritation that they are being scrutinized.

What to Ask

Begin your questioning by asking the builder about their past training and experience.

• How did they learn to build homes?
• How long have they been building?
• Have they worked for/with other home builders? In other industry related fields?
• Have they ever had any other careers – past or present?
• Are they a full-time home builder? Or do they have another job?

Next, ask about their philosophy of home building and their process with new clients. Ask specifically:

• What is their home building philosophy?
• How much personal supervision of the project does the home builder perform?
• Do they use superintendents?
  • (A superintendent is someone responsible for running the day-to-day operations on the construction site and controlling the short-term schedule. The role of the superintendent also includes important quality control and subcontractor coordination responsibilities. Some home builders use superintendents while others personally serve this role for each project.)
• If so, how are they used?
• How much experience and training do they (the superintendents) have?
• How long has the superintendent been with the home builder?
• How are they paid? Salary only? Or do they get a bonus percentage of dollars saved off the original project budget?
  • Important Tip: This is a common arrangement for a home builder to have with their superintendent on contract jobs. The problem with this is often times the superintendent will take short cuts during construction to increase his bonus. This is clearly not in the client’s best interest, so it is something to be aware of.

Ask about their productivity. This will give you some insight into the level of personal attention your builder will be able to give your home.

• How many houses do they typically build in a year?
• How many projects (new homes and/or remodeling projects) are underway now?
• Are there any projects already planned for that would coincide with yours?

Then, inquire about current and past client relationships. Since the builder-client relationship is SO important, be sure to take some time with these questions. (Note, you will also be able to compare to the reference lists you gathered previously and your past client interview sheets.)

• Do you feel you build strong relationships with your clients?
• Have you received referral business from past clients? If so, how many?
• Are there any previous clients you don’t want me to speak with? Why?
• Have you ever been involved in a lawsuit? Why and what was the resolution?”

These may be difficult questions to ask and answer, but an honest builder’s candor will shine through here. Be upfront and direct and carefully watch their body language and response.

Do keep in mind that home builders are human and everyone makes mistakes. Your goal is to learn as much as possible while trying to gauge your level of trust with each home builder. The fact that they may have had a past lawsuit or a previous client relationship that wasn’t perfect isn’t the most important thing to you; it’s how they handled the situation that’s important. An honest and respected home builder will feel comfortable explaining the situation, and how he resolved it. If this topic is avoided, it may be cause for concern.

Finally, ask about what type of warranty they provide and have them give examples of repairs that have come up from previous clients.

• Building a home is a complex process, be wary of the answer “we never had any warranty problems”.

Selecting Your Home Builder

At the end of the interviews, you will hopefully have a sense of chemistry or rapport with the builders. The importance of this chemistry can’t be emphasized enough. You will be working very closely with this person as a team throughout the home building process. So, if you are having difficulty connecting personally with the home builder, it may be a warning sign. Your ultimate decision of who will build your new home comes down to trust – something that you can not put a price on.

Having completed your research, review all your reference interview sheets and your notes from your in-person home builder interviews. Consider the chemistry you had with each builder and weigh your options.

Congratulations! You should now be able to confidently select the right home builder for your new home. Let the excitement of creating your new home begin!

I sincerely hope these past few blog posts have provided you with lots of helpful information that will assist you with this important step in the process. If you have any questions, please feel free to contact me. – Carl

(NOTE: If after interviewing your original top two candidates you are still undecided, you should then take the time to interview the next one or two on your short list. Don’t be afraid to “be picky” with your selection. Remember, this is THE most important step of the entire home building process.)

As I emphasized before, this is the most important step in building a new home. Time and effort spent here will save you a lot of money and hassle in the future. Think about how much time you spent researching a new car. How many did you test drive? How many friends and family did you talk to for advice and recommendations? Now consider that the decision to build a house is 10-50 times more expensive than a car and you will be “living with” this decision for much, much longer.

The final steps to narrow down your list include doing a little digging on each of the builders on your list and contacting the references they provide to you. I have created an “interview sheet” that you can download and fill out on each builder candidate to help you organize the information gathered.

Do Some Digging

First, all of your builder candidates should be a “registered builder.” Check to be sure this is the case before you go any further.

• A Registered Builder is not simply a title that can be purchased and displayed on company vehicles and advertising. A Registered Builder is a professional designation granted to a builder who meets very specific requirements. Visit the Home Builders Association of Louisville to learn more about the advantages of using a Registered Builder or Registered Remodeler.

Then, contact each builder on your list to request a list of 10 (not less) homes they built over the past several years and references for each.

• Note: It is important to have homes that were completed at least 10 years ago if possible. This will give you insight into the consistency of the builder, how they handle warranty issues, and to the overall quality of the homes they build.

o Remember, inferior products and building techniques typically will not show up in the first few years of owning a home. Only after living in a home for a few years will an owner really appreciate the attention to detail in design and quality – or they will start to notice where corners may have been cut.

• Additionally, on average, find out how many homes they built each year over this time period. A high-volume builder may not provide you with the level of attention you desire. (You can verify this by calling the local home builders association or doing a permit search.) Beware of the builder that is not cooperative in providing this list including closing dates and complete contact information.

Interview Client References

Now that you have your client reference lists, you must speak with each one of them. No, not by sending an e-mail, but by making an actual phone call. Many people feel uncomfortable doing this, but I promise you there is no better way to find out the truth about your candidates. Remember, this is the most important step in the entire building process. Building a home is likely the most expensive purchase you will ever make and you owe it to yourself to make the effort. It WILL save you a lot of time, money, and hassle when building your new home or remodel project.

Speaking with past clients will often give you more insightful information than interviewing the builder alone. Use the provided interview sheet to help guide your conversation with each reference. Simply introduce yourself and state that “Mr./Ms. Builder X gave me your name as a reference. Could I have five minutes of your time and ask about your experience?” To begin your interview, ask questions like:

• What was your overall experience? Was it enjoyable? Fun? Stressful? Would you use this same builder again? Have you referred other friends to this builder? Did the overall cost exceed the original budget? Why? Did the home take longer than anticipated to complete? Were there any surprises (unexpected costs) at the closing?”
• Next, you want to get a sense of what the home is like to live in and the level of quality. You will be surprised that many people have not considered these issues until you ask. They simply think “this is the way it is” or their friends have similar complaints and therefore they are to be “expected.”

o Start with questions about the general structure. Do any floors or stairs “bounce” or squeak? Are any interior or exterior doors hard to open or close? Does noise travel easily between floors? Can you easily hear people talking or walking in a different room or level? Have you had any leaking from the roof or basement? Have you noticed any cracks in the brickwork? Has the driveway cracked or settled?

o Then ask about the windows. This is an area that many builders cut costs with problems showing up after 5 or 10 years. Are any windows difficult to open? Do you notice any drafts near the windows? Have you seen any rotting on the exterior? Have you had to replace any windows?

o Another area where costs are often cut is the heating and cooling systems. Ask about average monthly electric bills. (You can also contact the electric company directly and they can provide the range and average electric bill for any address you provide.) Do you notice any warm or cold areas of the home? Is the second floor and lower level comfortable? Do you have any trouble keeping the temperature the same as the main level? How noisy is your system? Have you needed any service or repairs?

o Next ask about the plumbing. Do you notice any excessive water noise? Have you had any leaks? How well do the sinks and tubs drain? Is your water pressure good?

o Lastly, ask “Is there anything you would change about your home? Are you happy with the layout and design of the home?” Have you had any problems or concerns? If so, did you contact the builder? How did they react to your problem?

• Before you end the call, allow the previous client to talk and elaborate on their home. You will be surprised how much a satisfied home owner is willing to talk about their home.

Now, collect and review in detail all of your interview sheets. You should have enough information to rank your builder candidates and narrow your list to the top two. Be sure to factor in the personal connections you made with each builder. Keep in mind this will be a lengthy working relationship, so ensure you feel a sense of trust and commitment with the builders on your list.

In the next blog post, I will cover the final step in selecting your builder – personally interviewing the top two builders to make your final decision. Have questions about how to select the right Louisville home builder for your new home or remodel project? Feel free to contact me to learn more.

I realized I may have jumped ahead a bit in the blog without addressing a very important topic: selection of your home builder. So before we get any further, let’s discuss why it’s so important to do your research and how to go about finding a top Louisville home builder.

Do you want to save money in building your new home? Do you want a house that will last with minimal upkeep and future costs? Do you want a home that is customized to your family’s needs? Are you scared to build because of the horror stories you’ve heard about building a new house?

Who you chose to build your new home is the most important decision during the entire building process. This can not be emphasized enough.

• How much research and time did you spend looking at your new TV, camera, or car? Now compare the cost and importance of these items to your new home. Your home is likely the most costly and important purchase you will make in your life, so be sure to give it proper consideration and educate yourself on your options.

Your builder will have a profound impact not only on your overall satisfaction with the final home, but also with your enjoyment of the building process as a whole. You will be working very closely with this person for several months during construction and the personality and ability of the builder to work as a team with the client is extremely important. This relationship is ultimately about trust. Having confidence that your builder has the qualifications and the commitment to you and your new home, both now and in the future, will put your mind at ease so you can actually enjoy the entire building process.

At times, quality is difficult to determine, especially in a complex structure like a home. An experienced builder will place utmost importance on the design phase of your new home. This phase is as important as the actual construction in many ways. The builder and client will analyze the function, flow, and needs of every room to not only meet the customer’s demands, but also to avoid the excesses that result in increased costs. The home builder should guide the client to understand what parts of a home may be worth spending a few extra dollars up front on – to avoid unnecessary and expensive repairs and maintenance in the future…and which ones won’t.

So where do you start looking for a top Louisville home builder? How do you know where to find trustworthy and reputable builders?

• The best place to start is with your local home builders association, like the Louisville Home Builders Association. This organization will have a listing of all registered builders in your area, like Sterling Development Group. Any reputable builder should be registered with their local association, so be sure to check there first.
• Next, make a second list by speaking with an older, more established real estate agent in your area for recommendations of builders they know and trust. Real estate agents are often an excellent source of information for local service providers.
• Then, call at least two local lumber companies (there aren’t usually more than a few) and ask what builders they know and trust for quality home building. You will now have three separate lists and should begin to see some repeat names popping up.
• Finally, word of mouth is most often how clients hear about a builder. Your friends and colleagues will likely provide the most candid feedback about their building experiences and can recommend a builder you can trust. Note that it’s important to talk with friends who have built homes in roughly the same price range as your desired home so you get a clear picture of the level of quality that the builder provides. This last detail can’t be emphasized enough. As we will discuss throughout the Sterling Development Group blog, building a $700,000 home isn’t just taking a $350,000 house and making it larger – there are a lot of details that go into building a quality home. If their builder isn’t on your “short list” you need to investigate why.

In the next blog post I will show you how to narrow down your list of 3-5 builders. Have questions? Please feel free to contact me to discuss.

Obtaining Financing

Once a contract is signed, the next step is obtaining financing for your new home. Based on your financial situation, a bank will typically lend approximately 75% of either the appraised value of the home or the actual cost – whichever is less. If a lot is being purchased first, this “rule” also applies. An example will help clarify this:

Lot = $50,000

Home = $300,000

________________

Total cost $350,000

Bank willing to lend = $262,500 (75% of $350,000)

(assuming appraisal of > $350,000 total)

Customer Equity/Balance: $350,000 – $262,500 = $87,500

The bank will determine, based on your financial situation and relationship with them, WHEN your equity ($87,500) will be due. This can vary from immediately, to late in the construction process. This timeline is important to understand and plan for as you consider financing for your new home.

What is a Construction Loan?

Construction starts with a “Construction loan”. This is a temporary loan so that construction can take place. The loan typically expires in one year, or when the home is complete – whichever comes first. Once the construction loan is in place, the home builder makes “draws” on the loan (usually monthly) based on the work completed. The bank will inspect the job to ensure the work on the draw request is complete. The bank may also do a title search to ensure bills are being paid properly. If the contract is a Cost Plus Contract the buyer will see the invoices and review them with the builder for approval prior to submitting to the bank. In a Fixed-Price Contract the client typically does not see or review the draw request.

Managing Project Budget and Change Orders

As the home is built, actual costs can vary from the proposed budget. Additionally, buyers usually want to make some changes along the way. How “change orders” and budget discrepancies are handled varies highly by the type of contract and by the home builder. This is a very important part of the client/home builder relationship to understand. It ultimately comes down to trust. It is a good policy to settle all change orders as they occur to avoid misunderstandings.

Example: If the buyer decides to change the kitchen counter-top from laminate to granite during a typical progress meeting, the home builder should prepare an estimate of the cost of the change, have the buyer review and approve it before the granite is ordered. This will insure the buyer really wanted the change and understands the additional cost. When this change order is paid is dependent upon what the home builder and buyer have agreed to in the contract. In my opinion, it is a good policy to have change orders paid at the time they are executed so the buyer is fully aware of the additional costs to the project. It is not advisable to “settle up” change orders at closing as this normally leads to disappointment and sometimes disagreement as to the amounts owed. In my experience, closings should be a fun event, so I recommend keeping the formal parts current during construction.

What to Expect at Closing

Once construction is completed there is a “closing”. At this time a permanent loan is put into place replacing the “construction” loan. You will have applied for the permanent loan during construction of the home. The loan term of 10, 15, or 30 years is your option, based on your ability to pay and how long you want to take to pay it off. The balance of the equity is normally paid to the builder at this time. Be sure to plan a meeting with your financial advisor to discuss these options, as this will be different for each buyer based on their immediate and long-term financial goals.

Hopefully I was able to hit on some key points that will help address your questions around cash flow and financing of a home building project. If you still have questions, please feel free to contact me and I’ll be happy to discuss this with you further.

First, there are three kinds of building contracts that are generally used – Fixed-Cost, Cost Plus, and Design Build. I’ll review each so that you understand the differences.

The Fixed-Cost Method

This method is typically used when there is a complete understanding of the plan and specifications. This normally occurs under two different scenarios:

• The first is when the home to be built is a “production” home. This is a home plan that has been built by a builder many times and the client has had the opportunity to walk through a model home and make their selections. Typically there are very few changes after the start of construction.

• The second is when the buyer makes all of their selections prior to the start of construction and/or has good knowledge of what the “allowances” should be, so there should not be many changes after the start of construction. If this is a custom “one-of-a-kind” home, the home builder will need to do a complete “job cost” and review it in detail with the buyers so there is a complete understanding of expectations by both parties.

Advantage: By going with a fixed-cost, a properly prepared buyer can be comfortable knowing the final cost of the home should be close to the fixed-cost amount.

Disadvantage: A fixed-price contract has possible disadvantages for both builder and buyer. The downside to a fixed-cost on a “custom” home is the home builder may add dollars to the contract to cover areas he is not certain of, thereby possibly increasing the total cost. If something costs less than estimated, the builder gains, if it is more, the buyer gains. If something is not clearly addressed in the plans or specifications, the buyer could face unexpected cost over-runs. Also, changes made on fixed-price contracts typically carry a builder’s fee. This fee and how it is figured should be part of the contract.

Therefore, the fixed-price method works very well on production homes and not always well on custom homes.

The Cost Plus Method

The cost plus method is a contract where the buyer receives billing for all of the invoices involved in the cost of the home, plus a builder’s fee. This method is commonly used for complex custom homes with more options and customization. The buyer typically works directly with an architect to design their home from start to finish and create a set of plans and specifications. Sometimes the buyer will find a home in a magazine, or on a website, and then have an architect modify/customize it to their needs. Once the plans and specifications are finished, the project is bid out to multiple builders and a builder is then selected to build the home. In this method, the home builder is not involved with the process until selected to build the home.

Advantage: Going with a cost plus approach gives the buyer a lot more flexibility to make changes as the home progresses. The buyer is also more involved in the decision making process, including which subcontractors, vendors, and products are used, etc. This method allows the buyer to be as involved with the entire process as they wish to be.

Disadvantage: The major disadvantage with this approach is usually connected to the “allowances” established on the front end of the project to cover costs such as: cabinets, tile, flooring, appliances, light fixtures, windows, etc. As there is a broad range of products available for these elements of a home, the cost can also range greatly. Therefore, if the buyer does not establish, or verify adequate allowances to suit their wishes, the budget will likely go over the initial plan.

It is important for the buyer to spend time putting together proper allowances prior to bidding out the project to the builder(s) to put into their estimate(s). This will result in more accurate estimates for the cost of building the home and help reduce the chance of budget over-runs. In a nutshell, it pays to do your homework up front.

Additionally, if the builder you choose is not experienced in building “custom” homes, he or she may not properly estimate the costs, which are not covered by buyer allowances. These costs would include: cost of the foundation, framing, roofing, HVAC, plumbing, electric, etc. If the budget is wrong, the buyer is ultimately responsible for cost over-runs. This is the main reason the buyer must be very careful to choose a builder with experience in building custom homes and one with a good reputation for “bringing the home in on budget”.

Finally, do keep in mind that the final estimate of the home may be much higher than the buyer’s budget, as the costs are unknown until the bids come in from the builders. This could result in a long delay while the plans and specifications are changed to fit the buyer’s budget.

The Design Build Method

The last type of contract is Design Build. This type is reserved for the truly custom home. The home builder is involved from the beginning, guiding the client through the building process from lot selection, financing, working with the architect and designers, budgeting and allowances, and continuing through the construction of the home.

Advantage: With the builder involved in the design of the home from the beginning, the costs are most likely to reflect the wishes of the client while staying within the proposed budget. This results in the absolute best home at the best price for the client. For example, the builder will work with the architect/designer and share with the client the cost difference for each style of home being considered, then give guidance as to the design/layout/size allowed to stay in their desired budget.

Additionally, the builder would guide the buyer on all allowances to ensure they get products that will reflect the level of finish they want while staying on budget. There is a very broad range of products and finishes available on the market and a good builder will help the buyer understand what selections to make based on their needs. In a nutshell, the builder works with the buyer and their architect/designer on every step of the process, so when bids come in, the buyer can have confidence the total cost will be within their budget.

Disadvantage: The disadvantages are few, as the buyer will be involved as much as they choose, while the home builder’s job is the most difficult of the three approaches due to the time invested prior to start of construction. Builders who offer this approach tend to be more personally invested in the quality of the home and in meeting the specific needs of the client.

As every client has different wishes for their new home (or remodel project), there is no one ‘right’ approach to contracts. Regardless of the approach chosen, it is important for the buyer to understand the process, know what is expected of them, and feel confident in the relationship with their home builder. At Sterling Development Group, we work with each client to determine which approach best suites their project and their comfort level with the process.

In short, know what you’re signing and understand why it’s a good fit for your new home or remodel project. In my next post I will discuss cash flow and financing of your home construction project.

If you are looking to hire a builder or remodeler and need help understanding the contract for your project, contact me to discuss reviewing it together.

8. Neighborhood regulations and association dues

Many neighborhoods today have written rules and regulations that dictate what you can and cannot do on your property. Your homebuilder can help look into this to ensure your desired home will be within these regulations.

Additionally, there are many neighborhoods with association dues to pay for the upkeep of the common areas. While this may be good for the neighborhood, you need to be sure the “common areas and facilities” are those in which you have an interest. For example, if you are retired and don’t have grandchildren nearby, you may not wish to pay for a large community pool and clubhouse you will seldom use. Another example – if you own a motor home or a trailer for a boat – you may or may not be able to keep it at your home. On the other hand, you may want these kinds of regulations to keep your neighbors from storing their boats and R.V.’s at their homes.

9. Who owns the lot?

Understanding who currently owns the lot and the involved sales process is important when considering a lot. If you are interested in a lot you found while out driving in Jefferson County or found on Google Maps and you want to contact the owner to see if they want to sell, you can go on-line to www.jeffersonpva.ky.gov or visit the Jefferson County PVA office at the Fiscal Court Building, 531 Court Place, Suite 504 to learn more.

10. Builder restrictions

Some lots have a restriction placed on them by the builder who owns it or the developer of the subdivision. These restrictions can vary from being required to use a “Registered Builder” (www.hbal.com) or a specific builder for that neighborhood. These restrictions can be good for clients looking to build a new home, or they can be a challenge.

• If the subdivision requires you to use an experienced Registered Builder like Sterling, they are doing this to help ensure a qualified person builds your home. This reduces the likelihood of poor construction going into the subdivision and helps protect the client from casual or hobby builders.
• If you are required to use a specific builder, you should do your homework on that builder and the quality of their work, as the client/builder relationship is very important. You will be working together for 6 months or longer on a project that will quite likely be one of the most important and expensive decisions your family will make. How to choose the right builder will be addressed in a future blog post.

Once you have investigated all the points discussed in these past two blog posts, you will be able to choose the lot that best meets your family’s needs. If this list seems a little daunting, that’s because it is a big decision and there are a lot of things to consider. Don’t be discouraged though, work with a qualified, Registered Builder and this part of the process will go smoothly and will be a lot of fun.

Please feel free to contact me if you are looking for a lot and have any questions about this process.

Custom Home Lot Selection

Lot selection is the first (and arguably the most important) step when considering building a new home. In my last post we talked about why selecting a lot before designing your home is so important. But now how do you select the lot that is right for your new home? Below are some key points to consider when searching for your ideal lot.

Keep in mind the criteria listed below will apply differently to each buyer. We all have our priorities and special likes and dislikes. The topics listed are there to help you find the strengths and weaknesses of a lot as it applies to your particular needs. As a long-time Louisville Builder, I have found that one person’s perfect lot may be the worst lot for another. Try to think about you and your own family’s needs as you consider the following.

1. What part of town you wish to live in?

Keep in mind things like:

• School districts – find out where district boundaries are:

o Jefferson County – www.jefferson.k12.ky.us/Schools/index.html

o Oldham County – www.oldham.k12.us/

• Where you work – driving distances and traffic flow:

o Metro Louisville and Southern Indiana: www.trimarc.org

• Taxes:

o Check to see if the area where you are looking has city/village, etc. taxes in addition to county taxes. This can be considerable and you could be paying for something you have no need for (i.e. schools, a large park system or a community pool).

• Where you and your family enjoy spending time:

o Are you an avid runner/biker/swimmer/golfer and need to be close to those recreation facilities?

o Do you frequent specific park systems?

o Are you active in certain organizations; is it important to be close by?

o Understand the location of the lots you are looking at and how they relate to:

Shopping: www.oxmoorcenter.com, www.mallstmatthews.com, www.thesummitonline.com

Highways

Local Parks: www.louisvilleky.gov/metroparks

Tip: Use Google maps satellite view (www.maps.google.com) for a birds-eye view of the lot and surrounding areas. This will help you with a better overall orientation.

2. How long do you plan to stay in this home?

Ask yourself:

• Are you likely to be transferred with your job?
• Are you settled in your job and you plan to be here for an extended period of time?
• Can you see yourself in this home for 5, 10, 15 years?

If you are thinking you may need to sell in the next five years, you will need to be more sensitive to resale considerations than you would if you plan to stay in this home for a much longer period of time.

3. Do you have a set budget in mind?

Consider the following as it relates to cost:

• As a rule, you want to build a home that “fits” the neighborhood. This applies to the total cost and general design of the home.

o You can research the property value of homes in neighborhoods you are considering by going to the PVA website www.jeffersonpva.ky.gov or try www.trulia.com.

• If you have a particular type or style of home in mind, your builder can help you with estimating the cost.

Tip: Keep in mind the age of the subdivision you are considering and the resale values you find (as new construction costs are normally higher than existing sales of older homes).

4. What level of privacy does the lot offer?

Consider your preferences for privacy and traffic:

The level of privacy, proximity to neighbors, and possible street traffic are important factors when considering a lot for your one-of-a-kind home.

• Do you prefer a more secluded setting with lots of space? Or is it important to you to interact with the surrounding neighbors?
• Is it a cut through (which could have a more traffic) but may provide quick access to your home? Or do you prefer a corner lot or a quiet street with minimal traffic? Those with small children may value being on a cul-de-sac or a dead end street.

Tip: Take the time to visit the lot at different times of day to observe the environment and see if it’s the right fit for you.

5. What is the orientation of the lot?

Which direction do you want your new home to face?

This may not seem like an important question, but placement/orientation of the home on the lot will significantly change how the house will function. For example:

• If the house faces West:

o Your backyard and the rear of the house will be shaded from hot afternoon sun. This will make a considerable difference in comfort when using any patio or deck in the afternoon and evening hours.

• If the house faces East:

o If you are considering a pool, having the hot afternoon sun may be an advantage for enjoying your backyard.

o Most houses have the majority of windows on the rear of the home, which means increased cooling costs in the summer as well as increased solar damage to furniture.

• If the house faces North or South:

o This is often the best compromise for those who want “some” sun.

Tip: If you have no choice on house placement, during the design phase, orienting the garage to face the harsh afternoon sun can act as a buffer to the rest of the home.

Stay tuned because next week, I’ll present the final five considerations to keep in mind when searching for your lot. Contact me if you have any questions or if you are searching for a lot and would like assistance with evaluating it for your new home.

The Importance of Placement of a Home on Your Lot

Have you made the exciting decision to build a new home? Are you ready to start the building process? Stop right there. Do you have a lot yet? If not, you’re missing an important step.

When deciding to build a home, you should find and secure your lot before you design the home. Clients often do this in reverse and end up having to rework a design to fit the lot, or end up settling on a lot they don’t love in order to accommodate their design.

You do need to decide on the basic style of home you want (ranch, 1 story, 2 story, etc.) and a general overall size to be sure the lot will be large enough to accommodate it, however it is not advisable to do any final designs until you find your lot. To get a good idea of the size of your future home, consult plans on the Internet, in books, or if you are working with an architect or builder, they can also assist you with this preliminary information.

The reason to secure the lot before doing any final designs is to properly place the home on the lot to emphasize the good qualities and minimize the less desirable features of the lot.

Examples include:

• Direction of the sun
• Existing large trees
• Landscape features – valleys, ponds, etc.
• Planning for the future – pools, patios, extra garages, sheds, etc.
• Neighboring homes and the related views

In the photos above, you can see the lot that was chosen by our example client. Before designing their home, this family chose the pictured lot for its location in their desired subdivision, its proximity to the owner’s workplace, its private wooded backyard, and its ability to accommodate the overall size of home they desired. There are some unique challenges with this particular lot that we’ll discuss in the coming weeks as we begin to design their home.

The way the lot is oriented can have a direct impact on which side the garage(s) would go on, and therefore how the home will need to be designed and placed on the lot. If the lot slopes from side-to-side this could also affect the garage placement and overall design. Do you want the sun in the kitchen in the morning or in the master bedroom? This could affect which side of the home the kitchen is on. The neighboring home on the left of your lot may have a pool you don’t want to look at from your family room, forcing you to design it facing the other way. The reasons for placing importance on the home orientation are endless.

Most homes that are designed before a lot is purchased are compromised in one way or another or the buyers are forced to buy/build on a lot they don’t really like because they need their house to fit. Building your new home is a significant investment and it should reflect your likes and lifestyle, not what has been forced on you by the limitations of your lot.

Bottom line: Do your homework and select your lot before you finalize the design of your home.

The top ten things to consider when selecting your lot will be covered in the next blog post. Feel free to contact me with any questions you may have or to discuss building your new home or remodel project.