Thinking of building?
Here are some helpful tips!

Choosing Your Lot

When you are looking for the ideal place to build your dream home, it is a good idea not to have a specific house plan in mind. Many people search endlessly for that perfect lot that fits the shape and dimensions of their chosen house plan, unfortunately finding that their lot is to narrow, has the wrong exposure, slopes the wrong way…you get the picture. We recommend focusing on what is important to you, i.e.: proximity to schools, work, shopping, quiet street, private outlook etc., after all location is the key to good resale. The lot and house design is what will make you happy and ensure better resale, so spend a little time, and yes, maybe a little money, to ensure your happiness.

Choosing the Plan That's Right for You

Now that you are ready to build your new home, how do you go about finding a plan which best suits your needs. When building a new home from scratch your choice of a design is obviously the most important decision you will make. There are essentially three options: you can design it yourself; you can select and order plans from one of the many books or magazines available; or you can hire a professional building designer to prepare a design and drawings based on your site and personal specifications. Each option has its own advantages and limitations, as well as cost implications. Let's look at each of these.

Doing It Yourself

For many people, designing one's own home is the fulfillment of a long-standing dream. It seems simple and natural, for who better knows what you want than yourself, and when it all works out it is indeed deeply satisfying to look around and feel, "we created this".

When choosing this option, be prepared to do lots of homework, for your level of knowledge and experience in construction and design - as well as your ability to translate your concepts into reality - will have a great bearing on your eventual "success" since it's something you may do only once in your lifetime.

Where resale is a concern, go ahead and be creative, but don’t restrict your resale potential by designing something that is too unique, i.e. a one bedroom 3000 sq.ft. home.

Beware, too, the pitfalls that can await couples who do it themselves; co-designing a home requires close cooperation and partnership so that nobody feels left out of the decisions, or one of you may wind up living in your dream house by yourself.

Finally, you should keep in mind that you get what you pay for, while this is the least expensive way to get you plans, they are only as good as you are.

Using a Stock Plan

If you find the do-it-yourself approach daunting, choosing a stock plan may be more of a sure thing. With the large number of house plan books and magazines available there is a wide range of options to suit you budget and taste, and stock plans, because they are massed produced, can be quite inexpensive. Looking at plans can help you define what you want (and don't want) in a house. These designs, the simpler ones anyway, often employ very basic construction techniques, which are familiar to builders, and can be the most inexpensive structures to put up. The plan books present you in effect with an inventory of what is currently fashionable and easily marketable should resale be a major concern.

Bear in mind though, these same qualities that make a house marketable can also have a down side - these homes are frequently geared to curb appeal, with more focus on flavor-of-the-moment accessories than on good space planning. Plans ordered from out of our region often fail to meet local building code requirements and may need re- engineering or design modification. Similarly, these homes tend to be designed for a generic flat site, which is hard to find in many areas, and to build them may require extensive and expensive site modification. The following link provides a large inventory of potential building plans: http://www.homeplanfinder.com/

Hiring a Designer

When you hire a design professional, a different level of opportunity and insight becomes available. This process provides a venue for you to express your ideas, problems, and desires to someone who has the expertise and experience to translate these into an attractive, practical and well built reality with an eye to your budget, site, and personal style and taste. Designers have more immediate access to building products and up-to-date technologies and are familiar with building permit and variance procedures to deal with the bureaucracy of obtaining approvals. Working with a design professional lets you the client participate in the design and creation of your new home.

Of course not all designers have the necessary combination of skill, experience, taste, knowledge, and attitude that fit compatibly with the requirements of the client. Also, since the development of a custom design involves a lot of work, the process can take more time and cost more money than the other options. As a client, you will be required to commit to the project. This means participating in decision - making and being willing to consider different and potentially challenging alternatives. Hiring a design professional can provide a dramatic new perspective, but it does not absolve you of some responsibilities - you will still be expected to communicate, make decisions, and have fun in the unique experience of creating your new home.

Is Your Lot Serviced?

When buying vacant land, it is important to know if the lot is serviced with municipal services, i.e.: sewer, storm drain, water, etc., and who will be responsible for the cost and installation of such services if it is not. Municipalities will identify location, availability and costs of applicable services for you upon request. Remember, some lots require drilled wells, septic systems or treatment plants. Always confirm what is necessary for your lot and add it to your house-building budget.

GST / PST ?

As of April 1st 2013, the Province of British Columbia abolished the HST, Harmonized Sales Tax, and reverted back to the two tax system, 7% Provincial Sales Tax, PST, and 5% Goods and Services Tax, GST. Our friends at the Canadian Homebuilders Association have compiled information to help you wade through the issues of GST and new construction. Please review the link.202012.pdf http://www2.gov.bc.ca/gov/topic.page?id=D9A34ECE8F384848ADEF899426F4F6CF

Financing Vacant Land

Depending on your financial situation, you may require a mortgage to buy your lot and build your home. Most often this is done on a draw system of three mortgage draws, i.e. lock up, completion of drywall and final occupancy. An appraiser will establish the end value of your proposed home and the bank will lend you money based on that value. Some banks will lend you money based upon actual cost of construction including the land component. It is important to deal with a mortgage broker that has experience in new construction financing and they will recommend the correct financing based upon your situation. Gerry Smith from TD/Canada Trust knows new construction and has supplied us the following link to his web page. gerrysmith@td.com

Checklist for Choosing a Builder

You are about to make the biggest investment decision of you life. Do your homework. Home building is a complex process. It takes training and great skill to build a high quality home. Not everyone who claims to be a Homebuilder is qualified or experienced.

After visiting as many new homes as you can, try to narrow your list of preferred builders to just a couple. Your next step will be to screen them. Follow these steps.Talk with the people who have used these Builders and ask if they are satisfied? Ask them what kind of care they got throughout the home building process, and after they moved in. You can get the names from the Builders.
Find out if the Builders are members of a new home warranty program and if not, why? Good Builders will provide warranty coverage and must show that they have the technical, management, marketing and financial skills to build new homes.
Ask if the Builders are members of the Victoria Home Builders Association, if not, why not? Association members are committed to customer satisfaction and adopt a code of ethics.
Housing technology is constantly changing. Ask what industry-sponsored training programs the Builders or their staff have taken in recent years.
 
Ask if home building is the Builder's full-time profession. Many problems are caused by amateurs with little experience or training.
Inspect the show homes on quality, attention to detail and cleanliness. They are good indicators of the quality of the Builder.
Drive past the Builder’s construction sites. Are they clean and orderly? This usually indicates a well-organized Builder.
Ask how long they have been in business under the same name.
Be clear about what you want and expect. In the home-building business, the real professionals want to know your expectations and needs, and they will want the opportunity to explain things to your satisfaction.

Balance price and value. If a Builder's prices seem out of line with others in the area, ask for an explanation. Higher prices should reflect better-quality materials, finishing, features and service. The opposite is usually true when prices are lower than average. Evaluate the promises that have been made and get them in writing.

Check the facts, check the figures, and say "yes" when you are sure about the Builder and the home. Assure that the Builder will be able to satisfy your needs and wants, and that you will have a comfortable level of trust.

New Home Warranty

Homeowners purchasing a new home today expect product satisfaction. When compared to most consumer purchases, a home represents the largest investment most people will make during their lifetime. Unlike a toaster or a lawnmower, a home is a type of purchase that is not refundable.
That's why a new home should have the 10-year written, insured, and limited warranty. It is available only through Builders who have met the screening criteria established by the program and its underwriters.

Because it is in writing, the warranty specifies what will be done to correct warranted problems, which may arise from the components used in constructing your home.

Warranty identifies what is warranted, what is excluded and the duration of the warranty. It is a limited warranty and certain exclusions apply.

In the first year, the warranty covers certain defects in workmanship and materials. If the workmanship and/or the materials used in building your home do not meet specified quality standards, your Builder is responsible for correcting the deficiencies.

For the first two years, portions of the major systems in your home are warranted. These systems include wiring, ductwork, and pipes. If they do not operate as specified, your Builder is responsible for servicing them.

In addition to the above first and second year items, the warranty includes five - year protection on water penetration and ten years on structural elements in your home. The warranty identifies which parts of a home are warranted, and the criteria for establishing a structural defect.

Your Builder is responsible for correcting warranted defects, which do not meet warranty standards in the first two years. If your Builder is unable to meet his or her warranty obligations, the warranty program will assist you. Warranty providers are responsible for the structural warranty coverage in years 3 through 10. Any request for warranty work done by the warranty provider is subject to a service fee.

The root of most disputes is miscommunication; new home warranty providers specialize in communicating between the Builder and the Homeowner and have a well-defined dispute settlement process for handling warranty issues.

You will probably never need the services of new home warranty because the key to their success is tough membership screening. But if you do buy a new home with mandatory warranty coverage, you can have the piece of mind knowing that your Builder has made an extra effort to provide you with more than a handshake, your Builder is providing a written commitment… a warranty on your new home lasting 10 years.

An Overview

As you can see, there is a lot to consider when choosing to build a new home. Take your time, do your homework and ask professionals to help when needed. Building your new home is fun and exciting and offers a huge reward when finished.