Your Guide to Building a New Construction Home

Building a new construction home allows you to design it just as you like. You control everything, from ensuring it is equipped with the latest energy-efficient solutions to choosing the perfect materials and fixtures!

While the freedom and flexibility is a huge plus, it comes with some drawbacks, too. New constructions have longer timeframes and possibly additional costs along the way.

But if you’ve decided to go ahead and build from scratch, this is just the guide for you. Keep reading for all you need to know about building a new construction home.

What Is a New Construction Home?

These newly-built homes have not been owned by anyone or lived in previously.

There are many types of new construction homes depending on the stage of construction they are in when they are purchased. The two main types are custom homes and spec homes.

Custom homes are built from the ground up after you’ve purchased the land. The owner can make decisions on everything from the layout to the finish. In contrast, spec homes are partially built, and the buyer can make limited design customizations.

Custom and spec homes follow similar steps for building. Let’s see what they are.

Steps to Building a New Construction Home

Step 1: Do Your Research and Set a Budget

The first step to building a new construction home is doing ample research to prepare for the process. You’ll be dealing with many experienced builders and architects and even mortgage lenders. So, having an idea of your requirements and preferences when it comes to design, layout, financing, etc., will help you make decisions every step of the way.

You can do your due diligence by looking up the costs involved in the construction process. Of course, you’ll need to set a budget first and decide how much you’re willing to spend. Understanding all the expenses involved will help you choose the best financing options as well.

Make sure to factor in how much time the project will take and your backup options if the project ends up running late.

Step 2: Finding and/or Purchasing a Lot

This is your next step if you’re planning a new construction from the ground up. Its main purpose is to understand what type of land you’re building your house on and whether it is suitable for your needs.

The size of the property, available outdoor space, climate, zoning, property taxes, HOAs—you want to consider all such aspects long before you break ground.

Step 3: Designing a House Plan

Designing a plan for your dream home is essential before getting started with the construction. It involves creating a floor plan, deciding the number of rooms you need, finalizing utilities and functions, and consulting with professionals to ensure you have everything you need.

Consult with experts and contractors with a thorough understanding of designing a house and know the land, local construction regulations, and all the technical details.

Hiring professionals may incur significant expenses, but this is a massive project that you cannot complete yourself, even if you are in the construction industry. You need a team to deliver much-needed expertise and experience. They’ll also help you avoid making expensive and hazardous design decisions.

Step 4: Selecting a Home Builder or Contractor

You will need someone to take care of and oversee the ins and outs of the construction project from start to finish. Hire a contractor that will do everything required—even down to the task of hiring plumbers and electricians for the build.

You can also opt for a builder—a professional whose responsibility is limited to building the house. You will need to hire separately for tasks like plumbing, electrical work, project management, etc.

When looking for professionals to partner with, consider their reputations, client reviews, public records, and portfolios. Once you’ve narrowed the list to a few options, get references and follow up with them.

If you’re unsure, consider driving around and looking at their completed projects in person.

Step 5: Getting the Necessary Permits

If you hire a contractor, they will take care of all the necessary permits for you. Otherwise, you’re on your own.

To find out what permits you need, you’ll have to contact the building department in your local municipality. You will get all the documents you need to fill out and get signed. They will also let you know if there are restrictions you need to keep in mind.

You’ll need permits for construction, plumbing, electrical work, HVAC, septic, and environment. These permits may add up to $2,500 or higher and require a turnaround time of 3 to 6 months to finalize.

Step 6: Financing the Construction

Financing is an important step that needs to be dealt with before construction begins. That is because you’ll need to make a sizeable down payment (30% to 35% of the price).

Shopping around for a lender to find the best mortgage offerings for your new construction home is crucial.

Later on, you will also need an occupancy certificate to replace the loan with permanent financing. So you better start preparing for all of this as early as possible.

Step 7: Oversee the Construction

Once your new home’s construction begins, there is much less to do except for overseeing that the process goes smoothly.

Make sure to schedule an inspection before the walls are closed up to evaluate the plumbing and electrical work.

Then, all that’s left is a few more inspections and a final walkthrough with the contractor to understand future maintenance needs and warranties. Once you receive the certificate of occupancy, you’re free to move in!

Build Your Dream Home With Golden Shore Design and Build

With Golden Shore Design and Build, you can rest assured that the design, planning, and construction of your new home are in good hands. We deliver fully-licensed and insured homes that are also cost-effective.

Our wide range of services will assist you from planning and permit collection to the construction and beautification of your property.

Simply tell us what your dream home looks like, and we’ll bring it to reality. Let’s get talking!