3 tips to know before you get started
the house that we're glad we didn't move forward with....more details below
1. Scope out builders you like
After we were fairly certain that building was the route we were going to take, we started researching builders in Chicago and set up meetings with them. It was helpful to understand the process a bit more as well as the basic rundown of the costs. In one instance, we learned that if we wanted a 3rd story, we needed to find a lot zoned RT3.5 and that it would roughly cost $100K to add that top level. At this point we were still debating if this was something we wanted or needed so it was beneficial to hear their opinions on it as well – they convinced us to do it. We built the 3rd level for Jeff’s office, and we are very glad that we did. He wasn’t working from home at the time but post covid, he now has a dedicated home office that he works from most days.
Builders also work closely with architects whom they can also recommend. Some design-build firms have them in-house and offer a flat fee for architect drawings and interior home design. We thought the price was outrageous, but ultimately ended up spending about that much with our independent architect and designer. You can also trust that an in-house team has the necessary experience to get the job done right.
2. Get design ideas and gather pricing info
I’m not just talking about pinterest boards…I’m a big proponent of going out shopping and selecting tiles, appliances, lighting etc. Doing so will give you an idea of where you’re going to be at budget wise. Even just knowing that you like marble vs. porcelain for bathroom tiles is helpful. I talk about this more in my blog How to budget for a new home build.
When we were on the hunt for a lot, a realtor put us in touch with a builder that had yet to break ground on a spec home. He said he would be able to customize it for us with white brick and sent over a price sheet with the allowances. I am SO glad that I had already shopped around because my tile and lighting allowances were nearly triple that of the home that the builder was offering us. It also didn't even have a 3rd story. We knew that it was not a good deal, and did not move forward.
Even though we spent more on finishes, we spent the same amount as the asking price of the spec home. Buying your own lot allows for you to bypass the margins that builders often bake into their pricing. It ended up being a much better value for us to purchase our own lot.
3. Ask around…and walk around too!
If you’re thinking about building, or even looking for a rehab, start telling everyone you know. I have had two friends find properties from people they knew or knew through acquaintances. Of course, get your licensed real estate agent involved - i'm here to help : )
Take walks around the area you want to be and talk to neighbors to spread the word. I try and take daily walks and still do this for prospective clients. It’s amazing what you learn, and who you meet. I even stumbled across a for sale by owner one day.
All in all, you can never be too prepared before you head into a new home build and every little bit will help you get the most out of it. Feel free to reach out to me or find me on instagram @houselovebystacy if you need help with finding a home, or even for home building tips.
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