Lack of real estate inventory may have you dreaming of building your own abode from the ground up. But what does the home-building process actually involve? We spoke to local realtor Jeff Mattie, partner with Core Real Estate Partners, to get the lay of the land on building your own home.
First, Mattie says, you want to use a reputable and knowledgeable realtor to help you acquire the land. “You don’t know what you don’t know,” he says.
After purchasing that ideal plot, you can secure a study period, a predetermined period during which the land is off-market and undergoes feasibility studies. This study period can include everything from investigating utilities, well access, and septic feasibility to determining site costs like grading or other land work. “During this period of 15 to 30 days (sometimes longer), you get to ask a lot of questions to better understand your property,” Mattie says.
Concurrent with the study period, you’ll work out financing details. There are a few financing options, Mattie says. You can pay cash for the land and get a loan for just construction or obtain a construction-to-permanent loan—where the land is financed up front and, once a certificate of occupancy is issued for your home, the loan rolls into a mortgage.
It’s also time to choose a builder. With this choice, “you’re basically signing up for a 12- to 14-month marriage,” Mattie says. “You want to like them and communicate well because there will be difficult conversations.”
With this step, Mattie recommends that his clients decide if they want a higher-end, custom experience or a more standard, predetermined home plan that will save money. For a more bespoke design-build experience, you can opt to work with an individual architect or a design-build firm to get something tailored exactly to your lifestyle, Mattie says.
After feasibility and financials have been sorted, you’ll work with a settlement company or attorney to close on your land, which can take 15 to 30 days. Then, you’ll finalize architectural plans for your home, hire someone to install a well, and begin submitting permits to your city or county of residence. “Issuing permits can take 60 to 90 days—it’s a necessary step, but it can be difficult,” Mattie says. “There can be delays during the permitting and design phases—this needs to be considered and accounted for. But if you use that time to ask more questions and become more familiar with the whole process, it’s going to benefit you and give you a better understanding of your home.”
Once permits are secured, it’s time to break ground. “Every builder is different when it comes to the timeline for construction,” Mattie says. “Some builders need 12 to 18 months of lead time, some can start right away. It’s good to have conversations early on about exactly when construction can begin so expectations are clear.”
Mattie says the typical timeline for completion is 10 to 14 months for a custom build and less time for a more standard plan. As the homeowner, you can be as involved as you’d like to be in the construction process. Mattie recommends asking lots of questions and getting clear on expectations for frequency and types of communication. “Some people have weekly meetings, [while] some just receive email updates from their builder,” Mattie says. “One good question to ask is whether your builder has a dedicated project manager for your job or if a floating PM rotates around job sites.” (A dedicated PM is ideal, Mattie says.) During construction, you’ll be locking in a mortgage rate, navigating any issues at the home site, and eventually picking out finishes for your dream home. After that, get ready to move in!
Mattie’s key piece of advice for someone building their own home? “Ultimately, the more involved you are, the more questions you ask, the better understanding you’ll have of how your home functions—that makes for more effective homeownership. It can be overwhelming but it’s a process that anyone can navigate with the right people on your team.”