When you decide to have a new home built, you’ll need to find a builder and sign a contract with them. Since home construction is a complex process, it’s important to make sure you understand your home building contract before signing it. What should you expect to see on one of these contracts? You should make sure your contract includes the following information. If not, you should have the builder revise the contract to include this information before you sign it.
Your contract should include information on the estimated timeframe for your home building project. It should show when construction is scheduled to start and when it is scheduled to end. You should also see details on when different phases of the project are scheduled to take place. Keep in mind that delays can happen for several reasons, such as adverse weather, labor shortages, material shortages or inspection delays. However, if these conditions do not occur, your builder should make every effort to complete your project within the scheduled timeframe.
Your home building contract should provide you with detailed information on the services that are included. This goes beyond the actual building process. Your builder should also state that they are performing any other tasks that are needed for your project, such as obtaining permits and providing materials, equipment and labor. Your contract should also show that the builder agrees to follow the house plans and specifications and will not make any changes or modifications to these without consulting you. This helps ensure that you’ll get the exact house you’re expecting.
Your contract should include details on payment, including when each payment is due, how much is due and how payments should be made, such as by check. You should also make sure your contract from the builder includes detailed information on all the fees and costs for your project. This helps you understand what you’re paying for, so you can ask questions or point out errors if needed. Your final payment might be due when your project is considered substantially completed. Since this interpretation can differ, your contract should provide a clear definition of substantial completion.
If you change your mind about certain features or other components of your new home, such as wanting to adjust a room’s layout, add a window or have a custom feature installed, the contract should address this. Your contract should provide information on how these changes will be handled. For example, your contract might state that you will need to provide written documentation with approval from both you and your builder to change facets of your project. Keep in mind that your builder might want to make changes during the project. Having this section in your contract stops your builder from doing these without your approval.
You should be able to check on the progress of your home construction project. Your contract should state that you may do this, as long as you plan to stop by at reasonable times, depending on the specific work that is going on. These inspections give you a chance to make sure your project is going as planned and bring up any issues you might have with the builder.
Shana Lundell has been a real estate professional since 2003 in Bourne, Cape Cod, Plymouth and the surrounding areas, where she’s lived since 2000. Shana is a luxury and waterfront specialist who has represented hundreds of buyers and sellers, including representing builders in over 100 new construction transactions in her career. She consistently achieves recognition awards for top production, including membership in the Coldwell Banker® International President’s Elite, an honor reserved for the Top 3% of agents globally. Shana ranks in the Top 100 of 4,000 Coldwell Banker agents in New England.
Shana works with a range of clients, including lifestyle properties, vacation residences, down-sizers, trade-up buyers, land, first-time home buyers, and new construction sales. She understands that moving happens for a myriad of reasons and has had the honor of helping all types of transactions. Many emotions can come into play during this time, but Shana is skilled at keeping calm and carrying on with care, professionalism, open communication, and the ability to keep things on target to achieve results. She guides her clients smoothly through the process, from dynamic marketing measures, negotiation and solution strategies, connecting pivotal professional resources, to coordinating the essential closing details.
Shana is proud to have over 100 five-star client testimonials that rave about her positive, professional, responsive, and authentic approach to real estate service. Love where you live. Live where you love. Looking to buy or sell? Call Shana Lundell!
