Questions to ask before building your first home

I understand that undertaking a building project can be a bit intimidating, even for someone with construction experience.  The majority of my clients have never been involved with building something for themselves or have only done small projects on their existing house. Before building your first home, here are a few questions to ask yourself to get you ready for the process: 

• Where do I build?  Many factors go into choosing a place to build, including suitability for construction, cost, views, access to utilities and distance from amenities.  Other factors relating to the actual location of the property may also impact what you build or how expensive it is.  These include soil quality, number of trees, accessibility to public water or sewer, or if not, can a septic system perc there, is there a high-water table, or even does my road get plowed in the winter? A homeowner's association (HOA) can further complicate how you build. An HOA can dictate specific requirements for your build, such as the size, style, or exterior materials. Zoning can also become an issue. For example, most property in my area only allows one primary residence on a lot, so be careful if you're considering building a guest house- zoning may not allow it. Are you building for a year-round residence or a vacation home? If it's a vacation home, do you plan to rent it out? That can help defer some of the cost, but you need to consider when you want to use the property, and do you need a management company to take care of maintenance and rentals, or will you handle it yourself?  With such a big expense, it's normal to consider resale- can I recoup my costs immediately, or will I need to hang onto the property for a few years first? Before breaking ground, it’s important to know the answer to these questions before building on a specific lot. 
• How much can I afford to spend on property? This question requires a careful analysis of your budget and future plans, such as employment flexibility, college expenses or retirement plans.  Invariably, a construction project might cost more than you anticipate, so be sure you have an adequate cushion, at least 10-15% of the total cost, in your budget for unexpected construction expenses. There may be environmental factors, such as bad soil, that impact the cost of construction.  And, once again, you might run into zoning codes that impact your plans, such as a restriction on short-term rentals.  To avoid some of these pitfalls, it's helpful to contact a local professional, an architect or builder, and hire them to analyze the property for construction suitability and challenges.  I have worked with a number of people considering purchasing a piece of property and helped them avoid zoning and environmental challenges that could have been costly or caused disappointing setbacks. Though an architect or builder can't necessarily eliminate every surprise, qualified professionals have the experience to anticipate many problems before they come up and, ultimately, save you money when building on that property. 
• Am I ready for the cost and effort required to build a new house?  Sometimes, you might find that a renovation or addition would  be a better fit.  My husband and I purchased our second home, an "older charming" English Tudor in Downers Grove, Illinois, with the express goal of renovating the house.  The house, built in 1929, was not in great shape and required quite a bit of "sweat equity" to make it comfortable for the two of us.  The night we took possession of the house, we were already tearing out orange sculpted shag carpet and flocked vinyl wallcovering.  Several years later, we doubled the size of the tiny house to make room for two kids, but the maintenance projects and improvements didn't end until we moved in 2020, 30 years later.  I have helped quite a number of people reimagine their house through additions and renovations rather than bear the cost of completely new construction, but this choice, though usually cheaper, has other downsides. One downside is the difficulties of living in a building that's under construction (though it’s not impossible, as we found out). There may be unforeseen circumstances during construction to consider, including damage to the existing house due to leaks, or problems uncovered during demolition that could impact the rest of the renovation. But even completely new construction can bring surprises. A great example of this is when we purchased the property where we now live in 2016 with the long-term goal of building a new house, but it wasn't until 2021 that we actually broke ground.  There were some unique challenges we faced because of the pandemic. Still, we avoided some of these by planning ahead, such as purchasing plumbing fixtures, tile, and light fixtures in advance of construction to avoid delays.  Even so, we waited well over a year to get a dishwasher and had to reselect our refrigerator multiple times. I also heard horror stories from my subcontractors about essential pieces of equipment and materials that took many months or even years to procure. We don't seem to be facing the same level of challenges in construction now. Still, unexpected factors (tariffs? Lack of available products?) are something that a seasoned professional has faced before and can help you navigate.
• How do I hire the right architect or builder? Before you decide who to hire, it's helpful to see examples of a professional's work to see if they work in a style that appeals to you. There are nearly as many different types of homes as there are people to occupy them, and the key is to end up with a house that feels like home to you, in style and in quality.  You may want to talk to some former clients to see how their experience went with this architect or builder.  Budget should also be a consideration. Construction costs can vary dramatically by region.  Some builders are able to build for $400/sf, the low-end of construction cost in northern Michigan versus a more reasonable $200/sf in the Chicago area, and cost is always impacted by the size, quality and features you desire.  Other builders may only be interested in high-end construction. I have talked to builders in my area who have done custom houses that cost more than $1,500/sf to build.  The same is true for architects. Some may tailor their designs to fit a specific budget, while others cater to the client's wish list, hoping that enough money will materialize to build the house. Be careful not to get taken in by someone telling you what you want to hear as far as cost and scheduling go, without a realistic perspective. But also, be sure to listen to what the pro is telling you.  It's easy to get carried away when the house is being designed and wishfully think that the extra 200-300 square feet you added won't really cost much.  I know because I've been there myself! If your budget is limited, that extra 200-300 sf, or $80-120k may be enough to stop the project, especially if you're building with a construction loan. And little extras add up fast.  You should look for a professional you're comfortable with and who you feel is giving you a straight story on what construction will be like, particularly when it comes to the builder, since you will be spending quite a bit of time and money with them, so it's important to choose wisely.
• How long will it take? The answer depends on a number of factors- are you doing an addition or a custom house? How busy is the architect? How much of a backlog does the builder have?  There are many things that could delay construction, such as weather (how cold will winter be this year? Will it rain every week?), the availability of subcontractors, how long it takes to get permits, are there supply shortages, and a multitude of other details. I've acted as my own general contractor on several projects and learned firsthand how complicated lining up all the subcontractors can be and how the schedule can shift on a daily basis.  While I planned for construction of my house to take less than a year, it was 14 months before we moved in, and that was with part of the house not completed yet! As far as architectural drawings go, the design process depends somewhat on the architect but more often on the client. Client availability for meetings, timely feedback and a clear identification of what they want all affect how quickly the design is completed.  But the design phase is a critical part of the process of building a house or addition, and it's important to take the time to get it right.  It can also be helpful during the design process to involve the general contractor you're thinking of using for construction.  They can provide all kinds of useful input on cost, details, materials and schedule.  After the drawings are complete, they can be bid out to subcontractors in the area.  Here, it's best to get a contractor that you're not only comfortable with, but who has experience working in the area and who has relationships with quality subcontractors.  In general, I recommend that you try to plan for construction to begin at least a year out from when you get bids on the drawings, but this schedule can sometimes be accelerated. Getting permits can take months as well, and possibly much longer if you plan to build on the water and need permits from EGLE (Environment, Great Lakes, and Energy), the Michigan State authority that governs construction near lakes and wetlands.
• The BIG QUESTION. Will it be done by Christmas?  Unfortunately, I've seen this scenario too many times to answer yes with any certainty.  Ultimately, you will be living in and enjoying your new abode for many years, so try to relax and enjoy the journey, no matter how tough it may be!

It’s essential that, before building a new home, you ask yourself these questions to avoid any unnecessary costs and surprises. The great thing is that you don’t have to work through all these questions on your own! With the right team and expectations, building your new home or renovating your current home can be a fun and rewarding endeavor!