Frequently Asked Questions

Q. We plan on being our own general contractor. What savings can we expect?

A. Very questionable! If you' re inexperienced with the home construction business, we discourage it. Because of inexperience, expect higher prices, quotes and subcontractor delays. Builders who give subcontractors repeat work are favored for these reasons. You' re a one time sale. Ask your lender this question. Most avoid these loans for reasons I just explained.

Q. We have a relative and couple of friends in the building trades who offered their services if we are our own general contractor. All we have to pay for are the materials. Is this a good idea?

A. Sounds like a deal, but don' t count on them. Your venture will take months. Circumstances change, and so do commitments. Then what? Find out your lender's opinion and what you might expect under these conditions. Many don' t.

Q. Should we expect to save money when we purchase a package that includes both the lot and the home from the same builder?

A. Possibly. To verify how much you will actually save, have the builder separate the lot price from the home. This way you can compare prices individually. If this is your choice, be sure you understand the contract, including the warranty and having legal council present at the closing.

Q. We are paying cash to have our home built. How can we safely make building payments to our builder?

A. First, hire a private home building inspector to examine the completed work at each stage that your builder requests a payment. Secondly, retain a Title Company to disburse the payments. Both of these parties should be familiar with this process.

Q. Our municipal building inspector is not licensed, as this is not a requirement.. Seems like he does a good job. Do you approve of this?

A. No. But if that is the situation, we suggest hiring a licensed inspector, who will do four inspections or more. If a problem arises, your independent inspector can point it/them out to your local inspector, who in turn will have it corrected. It will be money well spent.

Q. We' re having problems with our builder regarding his workmanship and remaining on schedule. What do you suggest?

A. Retain a private building inspector to validate the "poor workmanship" with a written report. Send a copy to your builder and one to your lender. Inform your builder not to proceed any further until the faulty work is corrected. In addition, inform him that no further payments will be made until such is corrected. Then have your inspector re-examine the work to validate that the corrections are up to are up to standard. Finally, request a written work progress time table as to what will be done when and what date will the home be completed. Be sure the builder signs this.

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