Do you want to build a custom home? Between drafting up your construction plans to managing a team of contractors, building your dream home can seem like an overwhelming project. There’s a lot to get done before construction can start. This is why it’s important to plan ahead, do your research, and understand each step of the process, so you know what to expect. Here, Brad and Karen Mattonen from Homes in San Diego County break down some of the most fundamental home construction steps and help you get started on your plans!
Find the Right Custom Home Builder
Many decisions need to be made throughout the home-building process. A custom home builder will provide guidance and insight to help you make informed choices to ensure the end result is both functional and aesthetically pleasing. A professional home builder will also help you better manage your resources through strategic planning, streamlined systems, supply discounts, and relationships with reputable contractors.
Hire an Interior Designer
Another important professional to consider hiring is an interior designer. While your home builder or architect will focus on the home’s structure and exterior design, an interior designer designs the layout and appearance of the home’s interiors, including hardware, flooring, lighting, textiles, furnishings, and paint colors. Typically, your interior designer will work with your builder to create cohesive home-building plans that meet your style goals.
Keep in mind that the cost of hiring an interior designer will depend on your location. In San Diego, you can expect to pay between $100-$225 for your initial consultation and about $100 per hour for the duration of your project. An interior designer’s rates also range based on experience, education, and specialty.
Take Out a Construction Loan
The process of applying for a mortgage to buy an existing home is relatively straightforward. But home construction loans come with more stringent requirements regarding credit score and income guidelines. Bankrate.com explains that construction loans tend to be short-term, higher-interest loans, typically one year in duration. While a construction-only loan requires borrowers to pay the loan in full once construction is completed, a construction-to-permanent loan is converted into a mortgage once the house is completed and occupied.
Find a Plot of Land
You’ll also need a plot of land on which to build your new home. LandCentury.com suggests several different places you can look for land. Visit established residential neighborhoods and look for empty plots, scope out properties on Google Maps and Street View, search online land listings, and consult with your builder. Builders and real estate agents often know about land that’s for sale, even if it isn’t being actively advertised.
Establish a Construction Budget
Budgeting for a home build is essential for keeping your loan payments under control. Because a lot of unexpected expenses often come up during home construction, going over budget is a common issue. Create a realistic budget and set aside a contingency fund of at least 10% extra.
If you’re on a tight budget, look for ways to reduce your costs. For example, lowering your square footage can help make your home build more affordable. You can also save certain features for the future after you’ve had some time to rebuild your savings. Talk to your home builder about the potential to build additions or a second story so they can work these into your construction plan.
Rent a Place to Live During Construction
If you’re building a house in a new location, you will need a place to live while your house is being built. Although you can trust representatives to oversee the process while you arrange for the move from another city or state, most people want to be more hands-on during the construction process. Consider renting a home nearby so that you can keep an eye on things and get settled into your new community. Home rentals in the San Diego area start at around $3,000 per month, but that will vary depending on the neighborhood. Try to find somewhere near your build so that you can start getting to know your way around.
Start Making Your Dream Home a Reality
Building a custom home is an incredibly rewarding experience. As long as you take steps to prepare yourself and your finances, the process will go smoothly! Hire a home builder and interior designer, review your construction loan options, and come up with a realistic building budget. Your home will be finished before you know it!
Even if you’re looking to build your dream home, Brad and Karen Mattonen from Homes in San Diego County can help you to find the perfect land for your new property. And we are happy to help you sell your current San Diego home. Contact us today to get started with your dream home.
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Real estate can be a complex and ever-changing industry, which is why the team at www.homesinsdcounty.com is committed to staying informed and up-to-date on the latest market trends and innovative strategies. Whether you’re looking to buy your dream home or sell for top dollar, we can provide you with the knowledge, expertise, and support you need to achieve your goals. Don’t navigate the maze alone – give us a call today and let us guide you every step of the way.
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