KTSB Education Guide Series. Top Ten Tips for Building a Custom Home

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1 KTSB Education Guide Series Top Ten Tips for Building a Custom Home

2 Top Ten Tips for Building a Custom Home Often, I am asked about advice or words of wisdom in making the custom home building process easier, less costly, or simply shorter. The truth is that building any custom home is a big project, no matter how prepared you are or how much planning you do. However, there are many things you can do to minimize the stress, stay within budget, and remain on manageable timelines. Sincerely, Kenny Terbrock Kenny Terbrock Signature Build Top Ten Tips for Building a Custom Home i

3 1 Set the Budget The best referee between your heart and mind is a budget.

4 A set budget may seem really obvious, but most purchases are emotional, and a custom home is probably at the top of the list. Arguably, your home - and a custom home, which may be your "dream" home is probably the most emotional purchase you will ever make. The best referee between your heart and mind is a budget. We have all been there when it comes to trying to stretch a budget to get the things we want. If your budget is both firm and realistic, your custom home building process will be infinitely more enjoyable, rewarding, and less stressful. Setting the budget encompasses many things beyond the actual home including but not limited to: Drawing up plans with an architect Cost to construct the home Land acquisition cost Interior decorating Furnishings Appliances Landscaping Exterior lighting Electronics and security And much, much more Top Ten Tips for Building a Custom Home 3

5 2 Determine the Area Where You Want to Live If you think you can make a location work, you will almost assuredly be disappointed.

6 It is common for people to find a home or piece of land in a part of St. Louis or St. Charles that they really like, but it is not necessarily where they really want to live. If you are from a certain area or have always wanted to reside in a specific area, then be resolute in your desire to do so if at all possible. If your dream home is built in an area where you really do not want to be - but you think you can "make it work," you will almost assuredly be disappointed. Ultimately, you will want to move away from that area, go through the entire custom home building process again, and/or lose money to sell the first custom home to build the next one. Important Tip: The area in which you want to live should be a BIG factor regarding the type of home you wish to build, and your budget. The area should be able to support your custom home in terms of appreciation, resale value, and other considerations like location, desirability, school district, property taxes, among many others. Top Ten Tips for Building a Custom Home 5

7 3 Determine the Type of Custom Home to Build Ask yourself critical questions about what you want now and well into the future.

8 Generally, the three types of custom homes that most people build include 1) ranch, 2) one and-a-half story, 3) or two story. Ask yourself some crucial questions to help you determine the type of custom home you should build: Do you absolutely prefer one type of home over another? Will your age be a consideration now or in the future as to whether a certain type of home will be conducive to your plans? type of house that would benefit you and your family now and into the future. As so many of these topics are interrelated, budget can affect or be greatly affected by your choice of ranch, one-and-ahalf, or two-story. For example, many people who have not lived in a ranch before are often surprised to learn that a larger land area footprint is more expensive in terms of square footage than is a twostory, where square footage is stacked and is often cheaper. How long do you plan to stay in the home? How important is resale value in the short to mid-term versus the long term? Are there other family member considerations like aging parents, young children, kids returning to the nest, etc.? Empty nest? People often strongly prefer one type of home over another. However, stage of life, kids, parents, etc. can all greatly affect the Top Ten Tips for Building a Custom Home 7

9 4 Purchase the Desired Lot Finding the right parcel of land is a bigger deal than most people expect because there are so many things to consider.

10 This is a very important and often timeconsuming step in the process of building a custom home. As previously mentioned, people who are ready to custom build typically know the area in which they would like to reside, but cost and availability of land varies and external forces like the economy can impact this both positively and negatively. Additionally, finding the right parcel of land is usually a bigger deal than most people expect because there are so many other things to consider: At KTSB, it is typical for us to accompany prospective clients to land sites to inspect and survey lots to ensure the right fit with the desired home. We encourage clients to consider the importance of this step, but also the realistic time and effort that it can take to find the right lot for your custom home. Is the area where you really want to be? Does the area support the investment in the house? Is the lot/land appropriate for the type of home you want to build? What are property values like in the area, particularly, in the price range of the custom home you would like to build? Is the actual location in the area conducive to your lifestyle present and future? Top Ten Tips for Building a Custom Home 9

11 5 Select an Architect Architects can also be a wealth of information regarding project management insight and experience...

12 Unless your custom home involves predesigned plans, architects are a critical piece in a custom home project. Sure, architects consult on ideas, design, and draw-up blueprints, but there is much more to this process than the actual drawings. Finding the right architect for your custom home project is essential because the architect literally designs the map of how your custom home will be built. Architects can also be a wealth of information regarding project management insight and experience, general contractor referrals and recommendations, and many provide on-site inspections and plan revisions throughout the project. Most architects specialize in certain styles, so whether it s Contemporary, Colonial, Mid-Century Modern, French Provincial, or anything in-between, finding an architect that fits with your project is crucial. Second, and maybe even more important is finding an architect you can work with from a relationship standpoint. As it is with your builder and interior designer, relationships in the custom home building process matter in a big way including your architect. Top Ten Tips for Building a Custom Home 11

13 6 Select an Interior Designer...choosing an interior designer is kind of like choosing a short-term roommate.

14 Similar to selecting an architect, choosing an interior designer is kind of like choosing a short-term roommate. Do they understand you? Do they have the right idea of what you want to accomplish in your custom home? Can you communicate on a two-way street? Can you see eye-toeye and can they help you realize your vision? Don t under-estimate the personal connection with an interior designer. Most projects start-to-finish take at least a few months, so it will behoove you and your custom home to be able to live with your interior designer. Whether you find a designer through the Internet or a personal referral, check their credentials, arrange an appointment, and review their portfolio. Ask a lot of questions, and a good designer should ask you to share your thoughts as well. From there, other meetings will likely ensue, and ultimately, the designer will submit a scope of work (SOW), including services to be provided, timelines, design fees, and billing schedule, among others. Don t forget to check the interior designers references very important! Has there been a home or commercial space that has inspired you, or made you think, That s exactly how I want my house to look/feel!? If so, ask around about the designer and contact them directly. Custom homebuilders are also a good source for interior designer referrals. Houzz.com is a great resource for design ideas and inspiration, and most top local interior designers showcase their work on Houzz. As with architects, interior designers can vary greatly in terms of style, experience, and rates. Top Ten Tips for Building a Custom Home 13

15 7 Create Plans (Keeping #1 in Mind) It is very important to have a reality check to ensure that you are really where you want to be relative to your budget.

16 If you have made it through the first six steps, chances are pretty good that you are seriously thinking about this custom home thing, and sometime soon you will be creating real plans. Set budget, identified/purchased lot, architectural drawings, and an interior designer are all essential to get the project rolling. Throughout the other steps, and particularly at this stage, it is very important to have a reality check to ensure that you are really where you want to be relative to your budget. It is very common for would-be custom homeowners to get very emotionally invested in their dream home. Plans are drawn, a great lot in a nice part of town, renderings of the interior design but when it comes to actually setting the wheels in motion with concrete plans and managing a budget, reality can sink in, and it can easily become overwhelming. This is a very common phenomenon, but regular gut checks, can ensure the process of building a dream home is more of a dream rather than a nightmare. Top Ten Tips for Building a Custom Home 15

17 8 Get Bids If there are significant outliers in the bids on your project - it could be a signal that something is amiss...

18 Obviously, you want to get bids on building a custom home. This should be pretty self-explanatory, but over the years, it has become a bit more convoluted. There are many custom homebuilders in the St. Louis metropolitan area, but since 2009, the number of builders has risen dramatically. On one hand, the dearth of builders should create a buying advantage for prospective clients. On the other hand, the dearth of builders has led to a wild fluctuation in pricing, quality, service, and timelines. you usually get what you pay for and a custom home is a huge investment financially, and certainly, emotionally. Always check credentials, references, and resources like the Better Business Bureau (BBB), and the Home Builders Associations (HBA). At KTSB, we encourage prospective clients to get three bids. Assuming comparable quality, experience, and materials, the bids should be pretty competitive. If there are significant outliers in your bids a builder who is significantly higher than the other two, or significantly lower - these can be strong signs that something is amiss. For companies like KTSB who have been in the industry for 30+ years, bidding on a custom home project is standard course of business. For newer entrants into the market (and there are plenty of good builders old and new), bidding can be a different animal, so it is wise to ask a lot of questions. Just like anything else, Top Ten Tips for Building a Custom Home 17

19 9 Sign Contract Tensions and emotions can run high, so a good working relationship with your builder is paramount.

20 Depending on the size and intricacies of your custom home project, you can literally be married to your builder for a minimum of six months to one year or even multiple years. It is vitally important that you trust your builder, and with whom you can have a workable relationship because you will rely on your builder in countless ways some known, but many unknown. Before you sign a contract, have an honest discussion with your spouse and family (if applicable) on your builder of choice, but also have a very honest discussion with your prospective builder. You will be in constant contact with this company/individual along with teams of subcontractors including carpenters, dry wallers, tapers, painters, brick masons, roofers, electricians, and more day in and day out for a long time. Tensions and emotions can run high, so a good working relationship with your builder is paramount. While the company/contractor running your project is getting paid for his or her services, it is essential that you like or at least respect their judgment, decisionmaking, and project management experience. Trust is necessary because your builder is making a lot of important decisions on your behalf. You cannot always be present or part of every decision that goes into building a custom home. It is virtually impossible. Top Ten Tips for Building a Custom Home 19

21 10 Build Your Custom Home The custom home building process can be stressful, but managing the steps can mitigate that stress.

22 Buckle-up and breath easy because it is going to be a long and exciting ride! If you have previously experienced building a custom home, you probably would have stopped reading by now. If not, maybe you have known friends or family who have been through it most will tell you it was pretty stressful, but ultimately worth it because they have the home they always wanted or dreamed about. For many, the anticipation the planning, preparing, devising, designing, scheming, shopping - seeing the project come to life is the big thrill. For others, it s that first family or friends get-together in their new home that make them realize what it was all about in the first place. Would You Like More Information? Please visit our website at for more information, or contact our office to discuss your custom home building or remodeling project. Call or info@kterbrock.com. Whatever the size, cost, time, or plan around your project, it is your home. In the end, you simply want to create a unique space for you and your loved ones to enjoy each other along with the amazing details of life that take place in your home every single day. That is what building a custom home is all about, and why it is well worth it. Top Ten Tips for Building a Custom Home 21