Imagine custom designed cabinets, the latest appliances, freshly painted walls, a home free from any hidden maintenance issues – and the thrill of knowing it was built just for you. Unlike purchasing an existing home, new construction allows you to customize every detail of a house. Though it sounds like a “dream house” in the making, the process of building a home from the ground up can be daunting, expensive, and time-consuming. This guide will help you manage expectations and understand what’s to come.

A realistic timeline

So, you finally decide to build your own home and you can’t wait to start picking out tile, fixtures, and furnishings. But, there are many steps involved in building a house and it’s important to have realistic expectations on the timeline. On average, a single-family home in Massachusetts takes nine to ten months to build. Factor in time for finding and buying land, acquiring permits and determining zoning regulations, and hiring contractors and legal representation – you may be looking at an even longer period before you can move in.

There are a number of other factors that can affect the timeline, too. One of the major bottlenecks is supply chain delays in materials. While you can’t control supply issues, you do need to consider potential delivery delays or choose only in-stock materials. You may have to forego that marble tile from Italy to stay on schedule, but that’s the advantage to building – you get to decide if it’s worth holding up the project for specialty materials.

Delays can also be caused by incorrect or missing information in the paperwork and permit applications. It behooves you to review all paperwork carefully to ensure there are no errors that could cause an unexpected delay.

Establishing the budget

The first step in the home building process is to set your budget. Although this may seem obvious, many first-time home builders underestimate the importance of this step – or overlook it entirely. A lack of good budgeting can easily lead to cost overages and delays. When considering your budget, you need to also determine the type of loan you will need, which is most often a construction loan. It is recommended to seek expert advice from your banker, accountant, or financial advisor on both the type of loan to apply for, what you qualify for, and the application process.

Generally, when assessing your financial situation, it’s important to consider the following factors:

• Cost of land. The amount generally spent on purchasing the land that your new home will be built on is typically 20-25% of the overall cost of the project.
• Hidden expenses. Expect hidden expenses, such as extra site work needed for the land, new furniture, appliances, landscaping, and more. Knowing your financial limits allows you to modify your building plans to meet your needs.
• Look into market prices for materials, labor, land in the desired location, and how the cost to build varies by state and region based on market costs of transport materials and regional prices.
• Ask for advice. Your builder or general contractor can advise you on details in your budget as they relate to local market prices, as well as any state and local regulations to keep in mind that may have extra fees.

Finding and buying land

Choosing a plot of land is one of the most critical aspects of home building. You can always design a home to suit a landscape, but you may not be able to alter a landscape to accommodate your home. The configuration of rooms, the placement of windows, the location of the driveway and garage, and many other design elements will be affected by the land you build on.

The cost of a plot of land should also be considered. Land prices in Massachusetts are some of the highest in the country, averaging roughly $102,214 per acre. The average cost of land for residential use in the Boston metropolitan area is between $195 and $230 per square foot.

Paperwork, permits, and zoning

Building permits are required for any new construction or renovations in Massachusetts. Permits ensure that the structure is built according to code and is safe. There are penalties and potential fines for homeowners and contractors who begin projects without approval and posted permits, so you must file them in concert with each phase of the build. Additionally, missing permits will make it more difficult to sell your home in the future.

General contractors are usually responsible for managing all the necessary permits and inspections. Most permits can be obtained either in person or online with local municipalities. For new buildings, a long-form permit is required. To obtain the permit, homeowners will need to complete a form and submit the construction drawings. Permit costs vary by municipality, so you’ll need to do your research and factor this cost into your budget. Keep an eye out for additional permits that may be required along with the long-form permit such as fire/smoke, plumbing, electrical, and so on.

Site prep, labor, and construction

This is where the fun begins! Now that you’ve found your perfect plot of land, and the financial paperwork and initial building permits are addressed, it’s time to focus on the construction of your home.

If your land has many trees or uneven terrain, it can be costly to clear and prep the property before construction can begin. Taking the time to consider your site and determine whether any alterations are necessary before developing construction plans is critical. It’s beneficial to hire a land surveyor or engineer to determine the viability of the land to ensure success in the long run.

In Massachusetts, homebuilders are not required to have a license to build. Technically, anyone can build a house – although it is risky to do it alone. Much time, research, and dedication are required to manage the many aspects of homebuilding and ensure the house passes all safety inspections at the end of its construction. This method may save on upfront labor costs, but it will most likely cost you in the long run. Homebuilding is not something you can learn as you go. A safer approach is to hire a contractor to oversee your homebuilding process. A general contractor typically charges about 10 to 20% or even up to 25% of the total project cost. Additionally, architects and designs tend to make up about 12% of the construction budget and may cost between $55.00 and $101.67 per hour in Massachusetts.

Buying land and building a home from the ground up can provide a unique opportunity to create your dream home. It requires patience, time, money, and effort, but with some planning, building a home can be a very rewarding experience. If you are interested in learning more about the home building process, contact Christos Viores at Ligris + Associates PC.

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