From architectural style and color palette to location and lot size, there are countless details that make a home unique. While your home search may bring you to an existing home that checks most of your boxes, building a brand-new home offers the chance to create something truly yours - and be the first to live in it!
Here is a step-by-step look at the basic process of building a new home.
Step 1. Determine Your Budget
Your budget will guide every decision, from the lot you choose to the finishes you select. Meet with your financial advisor and/or a mortgage lender early to understand your options - whether you have cash available or need to apply for a construction loan.
Step 2. Find Your Location
Especially in Durango and the greater Southwest Colorado area, there is a huge variety of residential properties. Start by outlining your wants vs. needs (views, privacy, proximity to amenities, etc.), then research areas, neighborhoods, and lot sizes. Decide whether you prefer a subdivision, which likely has design guidelines, or a private parcel with no covenants. Consider environmental and infrastructure requirements such as water access, road access, other utilities (gas, electric, internet, etc.), soil and subsurface, floodplains, and fire hazards (also for insurance purposes). Start your land search here!
Step 3. Hire Your Team
As with any major project, hiring professionals that are dedicated, who understand local factors, and who meet your needs can make or break a successful home build.
Builder/Contractor
The builder, also referred to as the contractor, acts as your main point of contact for the project. They generally have their own team or hire different subcontractors to fulfill individual aspects of the build such as framing, plumbing, electrical, painting, flooring, and landscaping. They are familiar with all of the local building codes and permit processes. Some builders may also own the land so you can purchase everything together as a package, versus purchasing the land and then financing the construction separately.
Architect/Designer
The builder may have a specific architect they work with, or you may hire both separately and the builder will carry out the designer’s plans. Sometimes the builder has set floorplans you can choose from that have already been designed by an architect.
Real Estate Broker
Although it’s not uncommon to work directly with a builder or contractor, hiring a RealtorⓇ ensures you’re being advocated for, especially while negotiating the real estate involved. Local real estate professionals can have a network of connections for additional services and resources to help with the project. Plus, if you need to sell a current property, they can help list it locally or connect you to another well-established broker in your current area.
Step 4. Designing Your Home
Perhaps one of the most fun parts of building your dream home is getting to design it to fit your needs and lifestyle. Having your ideas ready to discuss with your architect is important, while also keeping an open mind for their professional input.
Wants & Needs
Building a new home allows you to meet wants and wishes, whether it is the number of bedrooms, single or multiple levels, a big garage, or other desired features. Separating the required features from things that you would like to have is a good distinction to guide the designer. On the other hand, if there are things you want to avoid, this can help as well.
Custom vs. Spec Homes
A fully custom home gives the most flexibility in design choices. Because of this, it will typically cost more as they’re creating this home specifically to your liking. Another option is spec homes - short for speculation - which some builders offer as well. These are designed to meet market demand and trends, but sometimes allow for customizations or upgrades (for additional cost) such as air conditioning, paint color, countertop type, or light and plumbing fixtures.
Timeframe
Like any project, the timeframe can vary drastically from start to finish, including obtaining building permits, inspections, and certificates. The four seasons in Colorado can impact the timing, however, with a comprehensive schedule and team in place, this can often be done within a year of breaking ground. Take into consideration your current housing situation and whether you need to sell your current property or find a temporary rental.
If building a custom home is something you’re interested in, we would be happy to help with recommendations, local knowledge, and purchasing your dream home site in Southwest Colorado. Please let Max and Deven know how they can help with your real estate needs.
