Expert: Jessica Bryan - 4/11/2005

Question
My wife and I are looking for a lot to build a starter home in the Boise, Idaho area.  We are particular in our plans and have drawn up basic floor plans using Home Architect Deluxe.  The house plan is small, (about 1100 sq. ft.,) with a 2 car garage and a full unfinished basement.  From what I understand from talking to people involved in new home construction, we will need to find a lot in a subdivision owned by a builder willing to build specific plans and willing to do a basement.  I also realize that we will need to get an architect or find a builder who uses one that will draw up our plans.  I would rather not go through a realtor and pay an extra several thousand dollars if it is possible for me to find and arrange this myself.  I realize that some builders won't deal with the general public, but I know that many smaller ones will.  I know that some subdivisions require homes to be a minimum size as well.  I am seeking any advice on how to go about this.  

-Advice on how to best find the right lot - internet resources, or recommended criteria to look for.

-Advice on finding a good and flexible builder.

-Any other help and advice is greatly appreciated.  

Thank you for you time!!

Nathan.


Answer
Dear Nathan;
First, I would like to address the issue of saving money by finding a builder and lot without the use of a REALTOR.  In some instances you are right, but more often I find that the builder and seller will charge the same price regardless of whether you are represented or not--particularly if they have their own agent representing the listing side.  Builders cannot afford to cut their prices and offer better deals when a REALTOR is not involved.  If they did this they would alienate the real estate community and they would not get agents to show their homes. Consequently...it is only the very small and perhaps unsuccessful builders who may "cut you a deal" and I then have to question why they need to do this. Sometimes saving a few thousand could actually hurt you in the long run.  I have actually worked with a builder who lacked experience and would quote a lower price then find that he had made a mistake. His method of recovery was to cut back on the quality and time he spent in the construction.  (I quickly stopped representing this builder and will not recommend him to clients!) Having said this, it may not be the same in the Boise area, but I would strongly suggest that you keep this in the back of your mind when you begin checking on builders and subdivisions.

Now let me move on to the other issues: finding an architect is a costly proposition.  I would begin by working with the builder to see if he can adapt your plans using a designer or design company.  Sometimes, you can find plans very similar to the ones you like and with a few small modifications, get the same result.  Buying pre-designed and architecturally approved designs is a much less costly way of doing this.  Many home design magazines have advertisements in the back pages for design books.  For $10 to $15 you can get these and often find close to what you want.  My husband and I did this when we built our home.  Finding the basic plan and making some modifications to it then taking it to a Design firm that charged far less than an architect saved us thousands of dollars.

To find the right lot for a basement is a lttile more difficult when you are on your own.  A real estate agent has access to the multiple listing service and punches in the criteria to find the right lot. However, if you go it alone, you will need to drive around, read advertisements in the paper, stop by some subdivisions and inquire about other lots, ask friends, family and co-workers for help.  This will take time and lots of driving around but you will eventually find what you are looking for. If time is valuable to you, then again--I recommend the use of an agent.  If you decide to go out on your own, then take the time to call several subdivisions first and ask them about minimum square footage, and some of the restrictions they have.  If they do not have what you need ask if they know of others that do.  You will be surprised how many developers are helpful with a referral or two.

Finding a good and flexible builder is the easiest answer for your various questions: interview and question the builder extensively!  Get references and talk to all of those people.  Ask them questions such as: "Did the builder complete his project on time?  Did the builder go over your budget? Did the builder respond to your phone calls in a timely manner and was he responsive to your needs and questions?  Did he keep accurate accounting of the changes and additions?  What would you find lacking in the process?  What would you change if you did it again?"
These are just some of the ideas I would have for questions to ask.

I hope that this helps.
Regards,
Jessica Bryan
Managing Broker
House to Home Realty Services