Navigating New Construction

One of my favorite things about real estate is meeting new people. You meet the best people. One Spring day, I met a couple named Larry and Kim while hosting an open house in Heather Green in Buckner, Kentucky. From the minute Larry opened his mouth, I pretty much knew that he had never met a stranger. We determined that we both enjoy golfing, warm weather, and doing nothing. Instant friendship!

I realize you clicked on this to learn about new construction so I’ll get right down to it – Larry and Kim are building a custom home in Heather Green with the local builder, Key Homes. They saw an example of another finished product by Key Homes, found a lot in Heather Green that they liked, and wanted to explore it further. I’m sure that many people dream of owning a new home, one where they can have a say in every aspect such as the design & finishes. Yet, not everyone takes the leap because they fear the unknown.

Sharing the story of Larry and Kim’s home, I want to discuss some of those “unknowns” taking it step-by-step. If you visualize with me, by the end of this, maybe you’ll learn that the process is not as overwhelming as you thought.

STEP 1. This first step is important. We invited Larry and Kim in for an initial meeting with the builder. At this point, you’ll want to communicate your needs and wants. Be thorough and make sure to get all of your criteria out there in the open. In turn, the builder should be honest with you. Steer clear of people who promise the moon without reservation. A builder who possesses honesty is something that will minimize problems throughout the entire experience. This is also a good time to establish your budget, which brings me to my next step….

STEP 2. Pre-approval. You will want to connect with a lender and think through your plans for financing. Be sure to ask your builder up front if they will be holding the construction loan. If so, all you will need is a traditional mortgage and a one-time closing when the home is complete!

At this phase, Larry and Kim had increased confidence about building in Heather Green and they knew which lot they wanted to build on. They were not, however, ready to commit to a floor plan, so there we have….

STEP 3. A pre-construction agreement! For a small deposit, they reserved their lot and continued to meet with us to work on the best plan for their wants and needs.

Approximately 6 people, 5 meetings, 4 sets of plans and 25 cups of coffee later, we had ironed out the floor plan for their custom home. And they were pleased. And they signed on the dotted line.

Sidenote: Does it always take that many meetings, plans and coffee? Not always. But we wanted things to be just right. Being as prepared as possible before construction begins can make a huge difference and cut back on some unnecessary headaches down the line. It’s much easier to make a change on paper than it is once you get into the field.

With that behind them, Larry and Kim were now free to start roaming showrooms and dreaming about their finishes. A signed contract and a 5% deposit mean it’s time to go to work!