You have the perfect custom home plan and have found what you think is the perfect location to build it. While purchasing your lot ahead of hiring a builder has its benefits, it also brings drawbacks that can have a serious effect later on. The experts at Alair Homes Hudson outline the pros and cons of buying your lot first.
Being in Charge
One of the main reasons to build a custom home is to have a place that is truly your own. Choosing and buying a lot first puts you completely in charge of the home-building experience. You have all the features you want in regard to the size, shape and views of your property. This is a large benefit.
Getting a Better Loan
Once your lot has been purchased, the next step is to go to a bank and apply for a construction loan. This loan will fund the actual construction of your house, and it works to your advantage because your home build is a long-term project. Consult with your personal attorney or a bank loan officer to understand the terms of a construction loan and how it will work with the different stages of your project.
Higher Starting Cost
The biggest drawback of buying your lot first is that it will cost you more than it would by going through a builder. It is also possible that the land you picked out is not suitable for the custom home that you want to build. Buying land brings a large number of questions that the realtor or agent may not have the answers to, especially in terms of demolition, restrictions or variances. Having a builder assist you in finding the right lot will answer all of your questions and save you a large amount of money.
Cost of Materials
Building your own home without any help may be a matter of pride, but you will eventually be at the mercy of suppliers and the fluctuating costs of materials. This can make the cost of your project spiral out of control. A quality builder will have solid relationships with the necessary subcontractors and suppliers for your project to keep the work moving and on budget. The builder will also explain all the stages of home construction and answer any questions that you have. You will not be stuck in a holding pattern if the job hits a snag like you would if you were working solo.
Before starting any work, carefully consider the pros and cons outlined above. In the end, working with a custom home builder is the most efficient and cost effective way to make your dream house a reality.