Building a custom home is a significant investment that requires a lot of planning, preparation, and time. A checklist can help ensure that nothing is overlooked throughout the process and you’re set up for success. This article will provide a comprehensive custom home building checklist, covering everything from defining your needs and wants to overseeing the building process and final inspections.
The first step in building a custom or new home is to define your needs and wants. This involves considering the size of the home, the number of bedrooms and bathrooms, and any specific features or amenities you require. You'll also want to consider your lifestyle and any special considerations, such as mobility or accessibility needs. We suggest you organize your list in terms of needs and wants, so you can adjust the scope as necessary for your budget.
The next step in building a custom or new home is to determine your budget. The challenge of this step is that you’ll need a builder involved at the beginning to help you translate your list of needs and wants, into an actual cost range so you can move forward with confidence. We suggest you first start by meeting with a bank that provides construction loans and assemble an overview of the assets you can bring into the project (i.e. savings or current home equity). The result of this exercise should be understanding what you can borrow for the loan and what you want your maximum monthly out-of-pocket to be. We recommend our clients be conservative here and leave room for unexpected costs that may arise during the construction process.
Unless you're paying for your new home in cash, you'll need to obtain financing. This involves getting pre-approved for a mortgage and working with a lender to secure the necessary funds. You'll want to shop around to find the best interest rates and terms that fit your budget.
Finding the right builder is essential to the success of your project. You'll want to research local builders and read reviews and testimonials from previous customers. Look for a builder with a solid reputation and experience in building the type of home you want. You’ll want to engage this builder at the start to gut-check your budget and requirements, but also have them engaged during your land search to review potential improvements required for the lot that you pick.
The location of your new home is a critical decision that will impact your quality of life for years to come. Consider the proximity to schools, shopping, and other amenities. You'll also want to think about the size and shape of the lot, including any unique features that may impact the design of your home.
The land search process involves searching for available properties that meet your needs and budget. Consider the location, size, shape, and unique features of the land. You may need to work with a real estate agent to find suitable properties and negotiate a fair price.
We recommend that you devote around 25% of your all-in budget for purchasing a lot. Obviously, that can change whether you have specific requirements for the size of your home or location, but at the end of the day it needs to make sense.
After you’ve negotiated a price and before purchasing land, it's important to perform due diligence to ensure that the property is suitable for building. This may involve researching zoning regulations, reviewing local building codes, and having the land surveyed. You'll also want to consider any environmental factors that may impact your ability to build, such as soil conditions or natural hazards.
At Buildable, we provide a land report product that includes reviewing over 26 risk factors of land to ensure that you are making the right investment and there aren’t any factors that will drive up costs during your build. You can read more about due diligence here.
Once you've completed your due diligence and obtained financing pre-approval for your build and you have clarity on your build costs, you’re ready to purchase the land for your new home. It's important to work with a real estate agent and an attorney to ensure that the transaction is legal and in your best interests.
Work with Builder and Architect to Design Your Home
Working with a builder and architect to design your home is one of the most exciting parts of the process. You'll collaborate with these professionals to create a custom design that meets your needs and reflects your personal style. You'll want to be involved in the process, provide feedback and ask questions to ensure that the design meets your expectations.
At Buildable, we have all the people you need to approach your build in the right way. We ensure that you have a builder with you during your process to help guide you to an outcome that achieves your vision and of course your budget.
Before construction can begin, you'll need to obtain the necessary permits and approvals from local and state authorities. This will involve submitting plans and paying fees to obtain building permits, zoning variances, and environmental approvals. At Buildable, we will be working with you, your designer, and civil engineer to ensure this process is smooth.
During this phase, you’ll be picking out all your fixtures and finishes for your home. Your builder will define “allocations” or a budget you have for these items. Sometimes our clients tend to go over their allocations, so it’s important to ensure you have the funds to support the increase in budget. It’s important to stay conservative in this process to achieve the right outcome.
Once construction begins, it's important to oversee the building process to ensure that everything is on track. This involves regularly communicating with the builder, visiting the construction site, and monitoring progress. You'll want to be involved in the process, ask questions, and provide feedback to ensure that the finished product meets your expectations.
The last step of the custom home building process is inspection before moving in. This involves a final walk-through with your builder to ensure that all of the work has been completed to your satisfaction. You'll want to check for any outstanding issues or concerns and make sure that all systems are functioning properly. Your builder should provide you with a warranty and instructions for operating and maintaining your new home.
Once the final inspections are complete, you'll be able to move in and start enjoying your new home. This is an exciting time, but it's important to remember that there may be some adjustment period as you settle in. You may need to take some time to familiarize yourself with your new surroundings and get to know your new neighbors. It's also a good idea to stay in touch with your builder and address any issues that arise as soon as possible. With proper planning and communication, you can ensure that your new home is a comfortable and welcoming space for years to come.
Building a home in San Diego takes immense time and effort and can appear overwhelming to those who start the journey alone. However, building a home can be straightforward when you approach the process with experts by your side who can guide you through every step.
At Buildable, all of the people you need to have a stress-free home build will work with you to create the home of your dreams. Read about our team, talk to us, and get the answers to questions you may have about starting the custom home building process in San Diego.
