How to Build Your First House

Building your first house can be an overwhelming endeavor. There are so many decisions to make. The following steps will take you through the basics, yet they don't explore all of the details you will need to consider, such as lighting fixtures, floor covering, wall textures and roofing types. Typically, when you buy a ready-built house, those decisions have already been made.

Instructions

1. Locate a buildable lot. Finding a lot in a neighborhood or area you wish to build in is just one consideration when shopping land. The grade of the lot is important, as this can greatly influence the total building cost. If a lot requires additional grading, fill or retaining walls, the project cost will increase. Verify the availability of utilities. If the utilities are not close by, this can increase your cost. Explore the sewage system for the lot, ask if it is on sewer or will require a septic system. Before closing on the lot, have a peculation test done to see if a septic system can be added (if it is not on sewer). You may want to have the lot surveyed.

2. Explore financing options for building your house. Typically a lot will need to be paid for before you can encumber it with a building loan. Some people pay cash for a lot, pulling equity from existing property or find a building loan where the lot and construction cost can be bundled.

3. Visit city hall or whatever building department has authority over the lot you wish to build on. Before having house plans designed, you will need to discover the local building codes, which can vary from street to street. For example, one neighborhood might allow two storied houses and require a minimum square foot building under roof, while the neighborhood the next street over may not allow two storied structures and will not require the same minimum square footage. A neighborhood may have regulations that dictate the architectural style of the home.

4. Meet with an architect to draw up the house plans. Write a list of what you want in the house, such as number of bedrooms, layout of the house or desired amenities. Let the architect know your budget so you don't have plans drawn for a house you can't afford to build.

5. Locate a reputable general contractor. Verify the contractor is licensed, check with the local contractor's board, licensing agencies, building department and Better Business Bureau for any complaints on the contractor. Ask for references; check out their work. Talk to people in the building and real estate industry to get an overall impression of the contractor's reputation.

6. Talk to your insurance company. Don't assume your building site is covered by the general contractor. If the house burns down midway through construction, find out if you will be covered. You do not want to pay for a house that burned down.

7. Get everything in writing with the contractor and architect, so that it is clear what you will be paying for. Discover what the contractor's process is for releasing liens on your property. For example, the contractor will be paying off the subcontractors, and you will be paying off the contractor. If you pay the contractor, yet your contractor fails to pay the subs, they could file a lien on your property. Meet with your attorney to discover the best way to protect yourself, as laws may vary by region.

8. Visit the job site on a regular basis. There will be different phases of construction; such as laying the foundation, framing, roofing and finish work. An inspector from the local building department will inspect the work, which must be approved before moving to the next step. If you visit the job site, and you notice the framing is crooked or they are using different material than what was agreed in the contract, say something to the general contractor before they move onto the next phase.

9. Resist the temptation to make changes during the construction. This will end up costing you more money. If it is something you really want, and you don't mind the additional cost, then request the change.

Resources

• House Handbook