Expert: Dick Dennis - 7/17/2006

Question
Mr. Dennis,

I recently moved to a small city from a lot larger city and it is my opinion that the homes in the small city are overpriced.  I'm toying with the idea of purchasing land and building a custom home.  I've met with one company (Americas Home Place) and their prices appear reasonable.  I plan on shopping around more.  What questions should I ask?  How can I protect myself from hidden costs associated with building a home?  Do I need a real estate agent if I plan on building?  Let me know any pertinent information I need to proceed forward.  Thanks and have a great day.

Darnell

Answer
One of the first clues I look for before I look to move into an area, Darnell, is to look at the real estate agents section of the telephone yellow pages. If there are a lot of agents advertising there and seems to be a lot of agents generally, then you can bet real estate has been lively there, and most likely the prices will be a little higher than other locales. Also, how close is the small town to conveniences, yet has privacy? You are not the only one looking for such locations. Others are sick and tired of big cities, too.

When you do your shopping around for builders, be sure you see what homes they built. If they are now occupied, don't be bashful and ask the existing owners what they think of the work the builder did. Are there any problems the builder has not addressed yet? Is he dragging his feet generally? Were there surprising costs? The only reason why you may need a real estate agent is to buy the land on which you intend to build. Very probably, that agent will have a few builders in mind that he would recommend.

You should check with the city/county building department to see of what you should be aware. Talk to bankers and other lenders to see what their suggestions are. When you talk to enough people, you will notice a name that keeps popping up more than once or twice.

I do wish you well, Darnell

Dick Dennis           dixiedee13@aol.com