Plan Smart. Stay Smart.
Whether you are a first-time rehabber, or you are about to build your dream home, the process is definitely a challenging one. If this is your first time doing a major rehab project or building a home, there will be some challenges and frustration along the way. Lucky for you and everyone involved, when it’s all finished, and your vision has come to fruition, it will be well worth the time and effort. There are a few things that you can do to ensure that everything goes smoothly:
Take Your Time
Everyone says that construction always takes longer than planned, and that’s because most of the time, it does. You have to plan for a problem. Maybe the general contractor over promised, the consumer delayed the project with changes or indecision, the sub-contractor never showed, or some other unexpected issue.
No matter what, don’t lose your mind. It’s not going to be the fastest process in the world, I can promise you that. However, it’s so important for you to just be patient. Write your timeline down and leave room for error. Plan for problems. Open communication and make sure your builder knows what you are thinking. There’s nothing worse than letting your frustration fester until it explodes.
Do Your Research
In almost every single case, you should not attempt to build your own home. Finding the right team that you are going to work with is important. I can be tempting to simply go with the lowest bidder, but that’s not always the best choice. Do your research. What are your priorities, goals and actual budget? Make sure you meet the builder that will actually be working on your home in person. It’s important for you to connect and to feel comfortable with that person at all times. Make sure that you have personalities that work well together. It’s no fun communicating with someone that you don’t get along with.
Plan Your Plan
Building or restoring a home is a long process. Let me say that again, it’s a very long, drawn-out process and you will need a plan. Take your time with the plan just as you will with the build. This is your one shot to do things exactly the way that you want to so don’t miss anything because you have rushed. I recommend putting together a wishlist that you can add or take away from as your budget demands.
A Realistic Budget
It’s fairly common for most people to begin with a budget that is based on the size of the project that they are planning. A certain amount of dollars per square foot is a typical plan. It’s okay to begin that way, but those numbers are going to change so rapidly depending on the market, the supply and demand of labor, and the actual details of the project. Just like planning, I recommend that you begin with a big wish list and trim it down once the initial proposals start rolling in.
Be realistic. Wanting and doing are two different things. It’s easy to assume that you can lower your budget when making certain cuts but doing so is not always an option. It’s common for people to assume and trim the budget down so they can reduce their cash to close on their construction loan and then end up having to pay more during the project as the higher, more realistic, costs occur.
I also recommend utilizing a contingency by adding 5-10% to the budget to help absorb some of the higher costs that often pop up during the construction phase.
Make a Written Agreement
Do not scoop one shovel of dirt without a written agreement or contract between the homeowner and builder. Be sure to have the scope of the work, the cost, when payments will be required, when the project will be considered complete, and a myriad of other details so everyone is on the same page. A solid contract is going to ensure the success of your project.
It’s common for some builders (mostly smaller rehabbers) to not have a contract or not want to have a contract. Moving forward without one is risky. The American Institute of Architects (AIA) has a great standard contract online. Utilize it! You won’t regret it!
As long as you take your time, do your research, plan and be realistic, you’ve got an uphill battle when it comes to the rest of your climb as a homeowner. As always, I’m here to answer any of your questions as you go through the process. Remember, this is a good thing, and good things come to those who wait, patiently, very, very patiently.
-MW