There are numerous places to start. Following are some suggestions:
• Find a builder who builds the style of home that appeals to you and has a reputation for reliability and credibility (always check references).
• Acquire a piece of land that you love or determine the community you want to live in.
• Look for a house plan already built, in a book, as a model or in a parade of homes that fits your needs or incorporates ideas that appeal to you.
• Ask friends, business associates or homeowners, in the area where you are going to build, for a referral to a good builder.
As always, budget will determine the type of land and home you can acquire. To a great extent it will also determine your location. If you are from the general community you will already know, for the most part, where and what you can afford. Talking to experienced builders in the area will help you determine whether you can make things work. Realistic expectations are a must at this point. Priorities and options will have a way of surfacing once you commit to the process.
Q-2 How do I avoid being overwhelmed by the details?The key is breaking down the total objective into manageable groups of steps that will be completed in a logical, organized manner. Generally, the builder you select is the critical component in this process. If you don't have a home plan he can usually help you find one or provide an architect / designer to prepare a preliminary design. With a preliminary plan the builder can provide estimated pricing to determine if you are within your budget comfort level. Many times he can help you find a lot or direct you to someone who can. Not all builders have this diversity of skills and experience. Some only build, so you need to determine the capabilities of the builder you are talking to and, where he lacks experience, obtain the professional help you need.
If you recognize that the builder is disorganized and overwhelmed by the details, beware. In this situation you will not be focusing on your responsibilities, you will be more worried about what is not happening or happening incorrectly. The absolute key to any design-build process is organization and information flow. The process is intense and stressful enough without the additional worry.
Q-3 Why are there so many nightmare stories about building your home?We've all heard the horror stories and the adage "you get what you pay for" could never be so true in terms of builders. When selecting a professional with whom to work, the first criterion should be character; the second, competence; the third, dedication. Do you really want a contractor who is always trying to figure out the cheapest way of doing everything for a place your family will wish to call home? At Medina Homes we prefer to do things the best way. "Best" means the most effective combination of price to performance - getting the most bang for your buck. My best advice to anyone wanting to build a quality custom home:
Select your contractor based on reputation and character and not just price!
Q-4 How do I select a builder?Selecting a builder is the most important of all decisions. In addition to experience, skill, dedication, and honesty, and very importantly he needs to relate to you and your family. You can determine his qualifications for your project by doing any or all of the following:
• Check references by talking to homeowners and business associates.• Inspect in-process and completed projects.
• Meet with him and his staff.
• Review his contract, specifications, selections process (especially this!) and related job organizational materials.
Q-5 How do I compare builder pricing?
This is probably the most difficult aspect of builder selection for prospective homebuyers. Obviously, you want to get good value for your investment. Everybody asks "what is your cost per square foot?" This is a virtually meaningless question (akin to asking your car dealer "what is your cost per pound?) because there are so many variables which can distort the comparison. The costs can vary significantly based on the style of plan, level of finishes, location and infrastructure required by the lot or community.
Once you have determined the cost, you need to identify what it includes. This is the tricky component with custom homes.frankly, without an accurate and detailed list of specifications, comparing prices "apples to apples" is almost impossible.
The simplest technique for comparing builder costs is to discuss a builder's standard mark-up on costs. Make sure the builder is including all supervision and overhead in this mark-up. Most builders will disclose the mark-up they work under and most builders work under cost-plus or cost plus fixed fee arrangements (more on this later).
Q-6 How do I ensure I can build my house within my budget?Develop realistic expectations by researching new homes in your area and inquiring about the elements that interest you. You need to get comfortable that your budget will allow you to include the features and the space that you require. A reputable, experienced builder will be able to provide you a preliminary budget range based on your desired size, layout and features. We always provide preliminary budgets that identify this cost range to help you start at and stay within your comfort zone. As plans progress, so do the cost estimates. At any point, you will be deciding whether the cost of a feature or size of an area is worth the additional cost. Keep in mind that from the start of the process it will likely be 2 months or more to complete the planning phase and another six to eight months (or more) to build, so inflation will be a factor.
Q-7 Where can I get more information on New Mexico style homes?Su Casa Magazine is a good source that is devoted to homes built in New Mexico. Visit their site at sucasamagazine.com
Ventanas magazine is another excellent source for great ideas. Visit their site at ventanasdelvalle.com
Q-8 When should I impose my personal tastes and desires?We suggest to clients that if they are going to be in a house for 5-years or less stay away from really unique features that don't have broad appeal for resale purposes. This could include interior finishes or spaces that aren't customary. If you are planning to live there 10-years or more, you can exercise much more freedom in your design and selection without the short term retail concern.
As a builder, we go through this exact process each time we do a speculative home or build our personal residences. Since it is our money, we know how you feel. We are always trying to identify the most appealing features at the best price.
Q-9 How much time should I allow for the design and build process?The minimum time you should expect for design and build for your custom home is two months to design and six months to build. These numbers represent the most optimistic in both categories and would occur only if you found a house plan that required few modifications and was modest in size. Obviously the larger, more detailed and complicated the project the greater the time. An average for our projects now is approximately three months for design and seven months for construction.
A lot of what happens depends on how much personal time you can commit and how rapidly you can make decisions. The schedule availability of the other parties involved is also critical. Be realistic. Once you have decided on a floor plan, completed all the revisions and worked your way through all the details and finishes, the builder must then obtain the necessary permits and approvals. This includes architectural control committees for the community, building permits, utility permits and whatever else your area requires. This can be relatively quick or very time consuming.
Q-10 Do I need an attorney to represent me?If you have a realtor and are using standard real estate documents you most likely do not need an attorney. If you don't have a realtor it may be worthwhile to have the documents reviewed by an attorney for any significant deficiencies.
Q-11 How much does a custom home cost?Custom homes in the Las Cruces area usually start at over $100 per heated square foot without the land. Most of the homes you see in this website vary in cost from $110 per square foot to over $140 per square foot. Keep in mind, we build only true custom homes, not semi-custom, nor fancy track homes. The costs of the lots we build on vary in price from $40,000 to well over $100,000. We will also build on any lot that our clients have already acquired.
Q-12 What are your standard features?When people look at homes to build or buy, the two biggest issues are usually cost per square foot and features or upgrades. If the phrases "standard features" and "custom home" seem contradictory, it's because they are. The "standard features" are set by the customer. A true custom home is customized from the ground up. Most importantly, the builder / designer needs to understand how the client is going to live, and tailor the design for that lifestyle. The clients should choose a builder who incorporates as standard, most of the features you are looking for (i.e. 2x6 walls, insulation packages, wiring packages, etc.) At Medina Homes, we believe that a home should be so much more than a box with an address label on it. We believe in warm cozy spaces and gathering places. A custom home should have character and be reflective of the homeowner's personalities. A custom home should be a work of art.
The client should look for a homebuilder that is willing to spend the time with them to make sure they understand everything that is included in the price. One of the biggest benefits of a true custom homebuilder is the level of attention clients will receive.
Q-13 What is a fixed price contract and what are its advantages and disadvantages?A fixed price contract is one where the price for the project is set at the contract signing and is based on the items described and represented in the plans and specifications. The price can be changed throughout the construction process by written change orders or allowance reconciliations.
The advantage of this form of contract is that generally all risk of cost increases, damage or loss is absorbed by the builder. The disadvantage is that the builder may increase his fee and/or include a contingency line item to carry this risk.
If accurate, fully detailed plans and specifications are available, many of our clients select the fixed price option.
Q-14 What is a cost plus contract and what are its advantages and disadvantages?A cost plus contract is one where the builder charges a markup on the costs incurred in the execution of the contract. In addition to hard construction costs, project costs may include the cost of site supervision, insurance, and setup. On a cost plus 18% contract, for example, the client would be charged $1.18 for every dollar the builder spends.
The advantage of this contract is that the client will have knowledge of all expenses incurred and benefit from any savings realized throughout the process. The disadvantages are that if costs increase due to plan errors or omissions, inflation, or inaccurate estimates, the client pays the extra.
In any cost plus contract it is important to determine who is responsible for costs due to site damage, vandalism, errors in execution etc. It is also important to understand what items are included as "costs" such as, supervision, insurance, realtor commissions, etc. on which markup will be charged.
Q-15 What is a cost plus fixed fee contract and what are its advantages and disadvantages?A hybrid of a cost plus and fixed fee contract is cost plus a fixed fee. In this scenario the builder establishes his fee based on the expected costs and fixes that amount. If the costs of the base project go up or down, the building fee remains the same. The fee does not vary except through written change orders. This scenario allows the builder and owner to work together to control the costs and provides the proper incentives to do so.
This is our preferred form of contract for design-build client relationships as it provides the most open and "teamwork" oriented atmosphere throughout the project.
Q-16 How do down payments work?Each builder is unique. However, at Medina Homes we think the fairest way is to sign a letter of intent. The letter of intent is a preliminary agreement covering costs and time invested during the design phase and is sealed by a monetary deposit. The deposit is provided to cover the estimated costs of getting the project ready, preliminary design, permits, etc. Upon completion of the plans, specs, selections and bidding, a contract will be prepared for signature. At any time during the process, if the circumstances change, either party may cancel the arrangement with a refund of the unspent deposit amount. This protects both parties from significant damage. It is much easier to void a letter of intent for $2,500 then to rescind a contract for $500,000.
Q-17 What selections should I expect to make?Theoretically, you have the right to make all the selections in your custom home. From a practical matter, you will probably be involved in the selection of only a few of the construction components and most of the finishes, which are loosely defined as "all the things you can see". You should choose a builder who incorporates as standard, most of the features you are looking for (i.e. 2x6 walls, insulation packages, wiring packages, etc). By doing this, you will minimize the effort involved in selecting items which are outside the builder's envelope. Also, the builder won't always be saying "that will cost you extra". This can be uncomfortable for both parties as well as being inherently inaccurate in estimating the final cost.
Q-18 How do I know the house is constructed to building code requirements?In addition to the inspection performed all throughout the process by ECH personnel, whether we build in the county or the city, a combination of licensed engineer certifications and building department inspections provide the assurance of compliance with building codes. At each level of fabrication, an inspection is made before the installation can be covered. Final inspections are made at completion to insure code compliance for electric, plumbing and heating. In addition a final building code inspection is made which covers any number of things from smoke detectors and step heights to hand rails, address numbers and drainage. These inspections do not address the finish quality of the installation, but rather the functional and safety aspects of the home. In order to obtain a certificate of occupancy, all inspections must be passed.
Q-19 What should I know about warranties?Equipment and product warranties (i.e. appliances) received by the builder are fully transferred to the client. The builder will not usually provide any extended warranty related to these items.
For items not covered by these warranties Better Business Bureau and the National Association of Homebuilders has published a document titled "Residential Construction Performance Guidelines". This publication identifies "observable deficiencies", the related "performance guideline" and the "corrective measure". This publication attempts to reduce the subjective evaluation to an objective measurement. This is effective up to a point. There are always issues that arise which are not specifically covered and like beauty, much of it is in the eye of the beholder. When a questionable item arises, an agreement between the client and builder will need to be reached as to whether a deficiency exists and if so, what is a reasonable resolution.
The inherent problem with custom homes is that they are handmade using thousands of individual parts installed under all sorts of conditions by varying levels of skilled craftsmen. There is no perfect component in a home. The question is, what level of perfection do you expect in the home you are having built? Before you commit to a builder, look at several examples of his existing product and determine if you will be satisfied with his level of finish work. There are differences in "fit and finish" from one builder to the next. It is worth your time to investigate and inspect closely.
The normal time frame for warranting construction and cosmetic deficiencies, other than product and equipment warranties, is one year for parts and labor. Structural components are warranted for six years. Many times it is more financially beneficial for the clients to seek their own Home Owner's Warranty from a third party rather than purchase a Warranty from the builder.
