New Construction Information Center: At Heritage Properties, we have an on staff NC Licensed General Contractor and Realtor, Alan Averette. Alan is a Certified Energy Star Builder, and Certified HERS (Home Energy Rating System) Consultant for individuals who may not be considering selling, but would like to know how to save money on your energy bills. Energy Efficiency is becoming more and more of a concern for home owners. Heritage Properties represents several new construction neighborhoods in Eastern North Carolina such as:

New Construction Q&A Session:

Q: I’ve looked at several speculative new homes for sale, and I haven’t exactly found what I’m looking for; I’m considering having my own home built, but I don’t know where to start.
A: The first thing to do, with the help of your *Realtor and your *Contractor, and getting your pre-approval from a local lender for a construction loan, is to locate home sites of your choice, making sure that there is either sewer available, or that the lot is suitable for septic tank requirements. Having more than one choice of a home site is wise, especially if you have not made a decision on a house plan. If you don’t know where to look for a house plan, ask one of our qualified professional Realtors to assist you.


Q: What if I want to work directly with the contractor without going through a Realtor?
A: Certainly you can hire your own contractor, and work directly with the *Contractor. If you are already working with a *Realtor prior to making the decision to build, it may be wise to continue with that *Realtor as a liason between you and the *Contractor.


Q: I don’t have a house plan yet, but have a good idea as to what I want. Should I go ahead and make a decision on the house plan first, before seeking a home site?
A: That would be wise, as the placement of the house on the home site is key as to whether that plan would work well with that lot or not.


Q: I now have my plan and am ready to start looking for home sites. I have a certain area that I want to live in. Do I call my *Realtor to find out what’s available in my price range?
A: Yes, with the help of your lender, knowing what your total price range approval is for, there is a limit to what you should spend on a lot.


Q: Now that I have found my lot, what do I do now?
A: You will make an offer on the lot, with a contingency that the lot is approved for septic/sewer use, and contingent upon the construction contract being signed with your *contractor; You will schedule a meeting with your *Realtor and your *contractor for a Pre-construction consultation, where you will make any changes to the plans, discuss your specifications, and the contractor will give you a quote for building your home. This normally takes approximately a week before the *contractor will contact you to discuss the pricing, and to schedule the final meeting prior to construction beginning. At this meeting you will approve the plans and specifications, and sign the contract with your *Contractor.


Q: I have several changes that I want to make to the house plan, and there are specific things that I would like to have in the home; when will I be able to tell the *Contractor about these items?
A: Before you meet with the *Contractor at the pre-construction meeting, make sure that you have all items written down, and a marked up copy of the plan to share with the contractor. Any changes at all can drive up the cost of the home, so be prepared to discuss these changes at the pre-construction meeting.


Q: After signing the contract, how long will it be before the *Contractor can start construction?
A: It usually takes approximately 2 weeks for the contractor to get the building permit from the local building inspector’s office. The *contractor also has to get the foundation scheduled with his subcontractor, so it normally is around 4 weeks from the signing of the contract before construction begins, although some times it is sooner.


Q: I think I would like to talk with more than one contractor before signing…what should I look for when making a decision on the contractor selection?
A: Just be sure when “pricing” for your new construction, that you are comparing “apples to apples”. Be sure to give the exact same information to each contractor that you are considering.


Q: How long does it normally take to build a home?
A: Weather permitting, *Contractors normally schedule for approximately 6 months. Depending on the size and nature of the house plan, this can be discussed more in detail at the pre-construction meeting, or the final meeting.


Q: How often should I go by the home site to check on status during construction?
A: As often as you feel is necessary; however, keep in mind that the house may seem to be going up rather quickly, and then depending on scheduling of the subcontractors, you may see a period of time where it appears nothing is going on. Quite often, in the last sixty days of construction, it appears that the process slows down, and even just a few weeks prior to the projected completion date, you may think that it will not be completed in time, but this is a common experience. A lot of things are going on in the final stages, so don’t be alarmed by this.


Q: What if I decide I want to make a change during construction?
A: This happens quite often; *Contractors call this a “change order”. Once it is established what the requested change is, the contractor will quote you a price in writing, and normally, expects payment of that change prior to making the change. Most customers do experience this during construction, and it is not unusual to have 3-5 change orders during the construction. Each change order will be in writing, and will be consecutively numbered for your records.


Q: What if I want the change order(s) to be included in my construction loan?
A: It depends on what your construction loan is for; it is wise to have some reserve cash money for these types of changes, without affecting the construction loan. Sometimes, depending on what you are actually pre-approved for, verses the actual construction loan, you may modify your loan with your lender.


Q: If I see something I want changed when I am at the site, Can I just tell the subcontractor who is doing the work about what I want changed?
A: No, you must always talk directly to the *Contractor about any changes, and for pricing. Remember that your contract is with the *Contractor, not the Subcontractors. *If you are working with a *Realtor, you should always let your *Realtor know of any concerns or changes so that accurate records are kept.


Q: How will I know when to choose flooring, paint, light fixtures, appliances, etc.?
A: Your *Realtor and your *Contractor will keep you posted and give advance notice as to when you will need to have these items selected.


Q: What if I want to add extra light switches and receptacles in the house? When would be the best time to let the *Contractor know about this?
A: Actually, you will be allowed to meet with the electrician for this at a specified time. Again however, the discussion on pricing should be made with the *Contractor, not the electrician.


Q: How will I know if the home is being built correctly?
A: There are several inspections made by the local building inspector, normally the foundation is inspected first, then the plumbing and electrical prior to the insulation and sheetrock going up. At each inspection, the building inspector signs off on the approval and this is recorded in the permit box that is located on the site. You can check this at any time during construction.


Q: How does the *Contractor get paid during construction with a construction loan?
A: At the closing of the construction loan, the advance will be made to the owner of the lot for the price of the lot; quite often an advance is given to the contractor also. Periodic draws will be made by the contractor, with your approval. These draws quite often coincide with local building inspections. Anywhere from 3-6 draws are made.


Q: When do I start making payments on the construction loan?
A: You will make monthly interest payments only during the construction, based only on the amount of money that has been drawn at that time. Once the home is complete, then your construction loan will be converted to a permanent loan(this is why we call this a construction-perm loan). Once it has been converted, you will then begin to make principal and interest payments for the duration of your loan.


Q: How will I know that the home is ready for me to move in?
A: When the final inspection is made by the local building inspector, and everything is approved by the inspector, they will issue a “Certificate of Occupancy”. This is your guarantee that the home has been built to code, and to the local building specifications.


Q: Will I be able to let the *Contractor know if there are things that I am not 100% happy with, prior to the final draw being paid?
A: Absolutely. Contractors typically perform a Preliminary walk through with the home owner approximately a week before the final completion. This is where the owner gets to scrutinize the house, and point out any items at all that are not satisfactory to the home owner. The contractor makes a “Punch List” of all those items and makes corrections over the next few days. Then a day or 2 prior to the final draw being paid, the contractor will walk through and check off with the home owner that all those items have been completed, and the home owner signs off on the list. At this meeting, an orientation of the home is also given to the home owner pointing out breaker box, filter changes, use of HVAC, how to operate windows, etc. The contractor’s warranty is also discussed and signed at this final walk through.


Q: What kind of warranty do I get on my newly constructed home?
A: In North Carolina, General Contractors are required to give a one year guarantee on the structural integrity of the home. Again, you will be given a copy of the Contractor’s warranty showing what is and isn’t covered, at your final walk through. This warranty can change from contractor to contractor.

 

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