New Construction Homes And Land

New Homes Guy "It's Complicated" - New Homes Tulsa

2012-02-16T15:01:00.001-06:00

The point to this post is to explain that there are costs to getting everything you want. In having a home built, you have the chance to get your next home just the way you want it. Buying a pre-owned home, you are buying what someone else wanted, and most likely there are many things you would have done differently (cabinet colors, counters, flooring, carpet color and pad, small or large changes to the plan itself, etc...)

If you've ever put a model airplane together, and I have, you know how easy it is to make a mistake. Even using the "accurate" directions that come with a model, quite often there seems to be pieces missing, extra pieces, or the pieces they show just don't fit together the way they are supposed to.

Now imagine 10,000 pieces, 50,000 pieces, or 100,000+ pieces. Even with the best directions, do you think 30 people, working at different times, with different people telling them what to do, could come even close to getting it 100% correct?

If your answer was YES, stop reading this blog and purchase a pre-owned home. Seriously. You may not be able to deal with the new home process (in a future blog I'll write in detail about all the trades that make a new home happen).

The simple truth about new construction is that it's complicated. It just is. It's also messy. I feel that the messy part should be another post all by itself, so lets just leave it at messy.

So, things are getting messy. The long grass that once covered your dream homesite has been pushed around into dirt mounds. Cement trucks have emptied their guts out. Piles of lumber have been cut up and filled with nails. Suddenly you have a frame that begins to look like a box of sorts.
If you were on the framing crew, you would already have seen 5 errors. Of course that's just a guess, but give me a chance to make a point. Look at the changes in the major automobile manufacturers. Robots are building our cars. Human error is being reduced as much as possible for many reasons. To name a few: Safety, cost effectiveness, dependability, and almost zero errors! Not fewer errors, but zero errors.

Let's get back to the framing crew making mistakes. Most mistakes are caught. Most. The point is that you didn't see them, so as the future homeowner, they don't exist. Mistakes happen, get fixed, and it all works out.

Many buyers having a home built like to visit the site to watch their future home come out of the ground. It's facinating to watch it take shape and grow. As they watch, odds are pretty good that they will catch a mistake before anyone else does. This is where it's necessary to know that it's complicated. If you have the ability to walk on water, heal at a touch, and come back from the grave, by all means, yell at everyone involved and make sure they know they have failed.

Back in the real world, perfection is to be sought, knowing it will never be attained (at least in the housing industry). Know from the beginning that mistakes will be made, and rejoice that your sharp eyes were the ones that found one. Make sure that you don't take this over the top, and appoint yourself the Construction Manager. "If I'm not here, this is never going to get done correctly". That's a phrase that comes from someone who is about to slow everything down, and probably make things worse.

I've personally had buyers walk through the frame of the home with a can of orange spray paint and mark 2x4's that they want removed and replaced because they have large knots in them, or aren't perfect specimens. This isn't going to happen. Don't get me wrong, I have also been on builders sites and wanted to mark 2x4's myself because they were too crooked, or installed incorrectly. The builder I work for is going to replace them without my asking. I know the quality they build, and what they will accept.

This is where new construction homes and pre-owned homes coexist. Mistakes in the construction process are going to happen. Mistakes are always going to be made while building the home, but with new construction there is a chance to catch them. Pre-owned homes have their mistakes built-in. Energy gaps we didn't think about 5 years ago can be avoided. Materials are quite simply better than they used to be. The energy efficiency and technology points taken into consideration in a new construction home are far beyond what was probably done on a home even 5-7 years old.

Enough for now. I hope this information has been of some help to you, and serves you in making your new home buying decisions.

New Homes Guy "Buying New vs. Buying Used" - New Homes Tulsa

2011-06-17T15:45:00.002-05:00

One of the most frequently written real estate articles on the internet is about the comparison of buying a new home vs. a pre-owned or used home. This post is part my opinion, with a greater part being my observations of those buyers I've worked with.
Every buyer is so different, and has such different criteria for what they want, that I always recommend sitting down and doing a wish/want/need list. Try to get clear about what it's going to take to make you happy before moving too far into the process.

After 9 years of being in the real estate industry, and having worked with thousands of buyers with Shaw Homes, the largest new home builder in Broken Arrow Oklahoma, here is the short list of why buyers choose new construction over pre-owned:

Many have an exact idea of what they want and just can't find it. This is more common now than ever as the use of rooms changes due to technology, and how space is used. Bedroom sizes were larger in the 80's as televisions went into every childs bedroom. Now with the high cost of gaming systems, more homes are going to smaller kids bedrooms and combining that saved space into a Game Room or Media Room, with larger televisions or projector systems.
Choice. If you are having a new home built, you get to choose just about everything in the home. It's a wonderful thing to have everything in the home be what you want it to be (or at least as nice as your budget allows it to be). The task of making those choices is easy with some builders, and difficult with others. Find out how each builder allows you to make selections. The ideal builder will have a Selections Center or Design Center, where you make an appointment to sit with a designer and make all your interior and exterior selections (brick color, counters, paint colors, carpet, tile, and more). Having a Design Center is generally another advantage to a large builder. If a builder you are looking at requires you to go all over town making selections, pause. If the area you are in doesn't have any builders with Design Centers, obviously you don't have a choice, but make sure you look for one first. After all the time you spend finding the right floor plan and what you think is the right builder, without a Design Center you are only about 25% of the way home. It's usually anywhere from 6 to 12 additional appointments or stores that you have to visit: flooring store, cabinet maker, brick, paint, lighting, and landscaping are just a few.
Repairs are just too expensive, and the average homeowner no longer has the skills to do the work themselves. Having a new home built means all new everything. Warranty coverage varies depending on the builder and the make of the items in the home. In an earlier post I mentioned my opinion of only using Carrier or Trane HVAC systems. My main reason for that is the longevity of their systems, but also how good their warranty coverage and customer service is. If the builder is keeping their cost down by using a cheaper HVAC system, where else are they "going cheap" that I can't see?
There are many small factors that come with buying a new construction home in a newer community. One great fact is that everyone moving into the community is in the same position as you are. By this I mean that they don't know anyone in the neighborhood and would probably like to meet some new friends (after all, sooner or later we all need to borrow something!). If there is a community clubhouse or pool, everything is new. If the community is in a growing area, most likely the stores and ammenities nearby are also growing and being built. As an area grows, quite often so do new schools. These types of factors lead to better equity growth, and quite frankly anything that honestly grows equity, find it and get it in a bear hug!
There is just something to be said about being the first person or family to live in a home. New carpet, new showers/baths, and more. There is the new car smell, then there is the new home smell. Both are to be appreciated.
TECHNOLOGY and ENERGY EFFICIENCY. I capitalized these two reasons because they are huge. It's a rare home that was built even 5 years ago that has BIBB insulation in the exterior walls (I will never own a home without this, ever again!), radiant roof decking, Energy Star rated windows with argon gas, solar attic fans, 90% or greater efficiency HVAC, HDMI wiring, fully wired for security and/or whole home stereo, tankless water heater, and more. More and more families love the Smart Home technology. Being able to arm your security system from work, or having your home tell you when your child opens the front door and is home from school, is fantastic. It's also a huge money saver for the HVAC to adjust itself for times when there is nobody in the home.
Newer design trends. There are several home design changes that have really gained speed over the last 4 years. One example is the decline of the Dining Room. Fewer people desire two eating spaces in the home when most plans already include a Breakfast Nook right off of the Kitchen. It's more convenient when you forget the salt or napkins, and making it a little larger to be able to handle a full size table is usually as easy as making it a Bay Nook. First floor Game Rooms have always been popular but are requested more now than ever. It's really just the updated version of the second living space or Living Room, but focused on entertainment. I quite often see a first level Game Room with a treadmill, a computer hutch, and a big screen TV with the family game console. Second Master Suites are climbing in demand amazingly fast. I think this is because of the state of our economy. Rather than an aging relative/parent going to a senior community or some such living arrangement, they are coming home to live with family like what used to happen, and still happens more commonly in Europe. A second Master Suite has it's own private bathroom, usually a walk-in closet, and the bedroom is on par with the size of the other Master Bedroom to allow more furniture and a true independent feeling to the space from the rest of the home. Some will even have a wet bar with a mini-fridge and counter top with coffee maker, small microwave, and more.
Garage space. Quite simply, over 70% of the buyers I've worked with want at least a 2.5 car garage, and most want a 3 car. The number one request I received while selling was for storage space. A 1,700 sq. ft. home can look beautiful with the right storage space. Without it, it looks cluttered and messy. Beyond just storage space, in some climates it's imperative to be able to always park your vehicle inside (intense heat can dramatically increase the aging of a vehicles interior, thereby also dropping the value of the auto faster). Using simple logic, with so many looking for a 3 car garage, having a home built with a 3 car garage means your home will appeal to more shoppers when/if you sell it. That's just smart money!
Last but not least is the favorite "Location Location Location"! Having a home built means you get to decide exactly where. Do you want a cul-de-sac homesite so your children can play in the courtyard without any passing traffic? Which way do you want the home to face? How large of a yard do you want? Want a pool? All of the factors of the land are yours to decide when you choose the homesite before the home is built.

I hope this list has been helpful to you, and aids you in your search for your next home.

New Homes Guy "The Contract is Everything" - New Homes Tulsa

2011-06-13T14:10:00.002-05:00

The Contract is actually everything! Before you even decide on a builder, ask for a copy of their sales contract. As soon as you think they may be one you would consider, request the copy. The reason for this is clear; If you start with the contract and making sure it's very clear and concise, the process can go well. If you end with the contract and have to fight to make sure everything is in writing and clearly spelled out, prices will quite often change, and the relationship will quickly fall apart. That means that you have to start all over again with another builder.

I can't count the number of buyers I've spoken with that say everything changed after they signed the contract. What they were told was included wasn't in the finished product. Details changed. It's the "unexpected" that can morph the new home experience from Dream Home to a nightmare. When I say "
unexpected" I don't mean minor changes, I mean serious misrepresentation. Some items that often occur are:

Full brick on entire exterior (watch out for siding used in entry ways and covered patios)
Tyvek house wrap. Moisture is a house killer. It it's not Tyvek, I recommend you begin shopping again.
Is there re-bar in the concrete driveway, patio, and front porch?
If the home is on a foundation, is the foundation post-tension?
Exactly what insulation is included, at what R-level, in each area of the home?
What brand HVAC system is used? This is a hot one (pardon the pun). If it's not Carrier or Trane, move on.
On two story homes, is the second story flooring "Silent flooring"?
What is the home warranty? When I was with Shaw Homes, their builder warranty doubled the area builders and came with 2 years of coverage, as well as a 10 year structural warranty! Find out what they are offering, and get it in writing!

A buyer sat with me and aked if our contract is a "closed ended" contract. A closed ended contract is one that has a Final Price that can only be changed with the buyers and builders joint permission in writing. Such changes are things like upgrades after the contract is signed (i.e. change master shower from ceramic tile to cultured marble, change interior paint color, add a light switch prior to electrical, etc...).

In the conversation, the buyer told me that the last home they had built included unfinished square footage on the second level that he had added to the plan for future completion. He wanted this unfinished space because he didn't have the money to have it finished now, but planned on doing it himself later to gain some sweat equity, and to keep it out of his mortgage.

One day during construction he shows up to the site to find the second level has been completely drywalled. Several days later the builder calls him to have a discussion. The discussion turned out to be a "you owe me an additional $5,000 for the drywall" type of discussion. Needless to say, the buyer refused to pay because it was made clear up-front that he didn't have the money, and that was why he had it specified as unfinished space to begin with.

At a later date the buyer shows up to the site to find that the entire second level was gutted, and the chunks of drywall were laying in piles. The builder not only wasted the money on the drywall materials and labor, but out of spite he added additional labor cost to have the demolition work done.

This type of an experience goes way beyond just contract clarity and enters into why using a large reputable builder has advantages most don't ever consider. In this case, a large builder would have eaten the cost and moved on, knowing that they have a client for life. When I sold homes for Shaw Homes, the largest custom home builder in Tulsa, the exact same thing occurred with one of my clients. When I called the buyers to let them know what happened, my exact words to them were "Merry Christmas and Happy Birthday".

Back to contracts. It's a huge misconception that a long contract is worse than a short one. Buyers feel like a longer contract is too "complicated" and all about protecting the builder. Not true. A longer contract is about the buyer and builder and what both parties expect through the process. Builders can either have their own contract created, or they can use a generally accepted contract created by a third party, such as the local Home Builders Association.

In my sales days, Shaw Homes used the Tulsa Home Builders Association contract, which is 9 pages long. In it, the contract clearly spells out the price, as well as what should occur if a building delay comes into the picture due to an act of nature or supply issue. A supply issue occurred in the past in many US cities when Hurricane Katrina caused a massive supply demand for building materials, as well as skilled labor. This size of contract even clearly lists the building materials and specifications, any upgrades requested by the buyers at time of contract, contingency purchase options such as "contract contingent upon sale of buyers current home", and much more.

Real estate law is very clear on this topic. "If not in writing, it doesn't exist" is what Realtors say. Quite simply, just because the salesperson told you granite counters in the Kitchen and ceramic tile in the Utility Room were included, if it isn't in the contract, the builder doesn't have to put them in. Of all the complaints I've ever heard, well over half are in this category. My advice is to demand that the builder give you in writing all that is included, and make sure that it is signed by the builder, not the salesperson or anyone else.

To summarize, the longer the contract the better. If you are represented by a Realtor, have them look it over prior to signing it. If you are on your own, read it over yourself to be comfortable. These types of contracts rarely use the heavy duty legal jargon, and spell the issues out fairly clearly. Remember that the builder needs to protect themselves as well as you. This means that some paragraphs are going to clearly protect them, some you, and some both parties. The most important part is that it all be in writing! If in doubt, consult a real estate attorney.

Good luck. The new home construction process can be an incredibly rewarding one when handled correctly. My goal is to help you make it what you dreamed it could be.

New Homes Guy "Choosing The Right Homesite" - New Homes Tulsa

2010-10-14T19:55:00.006-05:00

To begin looking for a place to have your home built, it’s important to first understand the viewpoint of the people you need to deal with to choose the land.

Most new home sales people are only allowed to sell land in the community they work in; most importantly the land that is owned by the builder they represent. This is extremely important to the builder because of the interest they are likely paying every month that land is in their portfolio.

When I made the decision to work with Shaw Homes, one of the largest factors that attracted me is the ability to sit in one neighborhood and sell a new home in Tulsa, and also be able to sell a new home in Owasso, Bixby, Jenks, Claremore, Skiatook, and more. This removes any drive from me to “sell” a customer a homesite in my neighborhood. That’s important to you because my perspective isn’t weighted towards the builder. Instead, I’m able to work with anyone who wants a new home, even if they want to build on their own land, and focus on what they want. After all, it's your home.

Now for the factors to keep your focus on while looking for the right homesite. In the building industry, we call this “chunking”. Break out the journal that you started for your New Home project and keep notes about the following questions and your answers to them:

Where are you comfortable living? (city names)
Is there a required school or school district? (If you desire a certain school, find out the exact addresses that can attend that school by visiting the local school boards website or office)
Relative location to work?
Highway access needed?
How important is it to have shopping close by? (Wal-mart, movie theater, restaurants, etc…)
Nearest hospital?
Do you want land, or a home in a neighborhood? Private land is another topic by itself, so for the sake or brevity, I will only cover selecting land in a community for now.
Are there amenities you require a community to have (clubhouse, pool, splash pad, park, etc…)
Do you want a premium homesite such as one on a golf course, pond, or greenbelt?
Would you rather be at the front of a community or deeper in?
Cul-de-sac homesite, corner (possible side-entry garage), or normal street?
Which direction do you want your home to face? The important factor is where do you spend the most time in the home, and which direction do you want that room facing when the sun rises or sets. For most people, they spend more time in the Great Room watching television, and therefore desire that room to be facing east to avoid the setting sun.

When I sit with a buyer and discuss what type of homesite they want, I begin the chunking process until we narrow it down to roughly 3 homesites. The next step is to go and walk the land. It’s important to visit each homesite and walk to the back property line. Look around, and then walk to the front of the site. If you are going to build your home there, you want to know what you will see every day. What homes are next to yours? What is the view? Is there unplatted land behind you that could be a strip mall, hospital, or 3 story tall apartments in the future?

Unplatted means that there is currently no plan on file with the city for what land is going to be used for. Always be cautious when buying along the edge of a community with empty land bordering it. If a salesperson tells you that it’s a greenbelt homesite, get proof by requesting a copy of the community plat with the land behind your home showing as being owned by the developer and part of the community, with no homesites or future homesites indicated. The plat map must be labeled "Final Plat". I would even go so far as to request a written statement that no home or business will ever be built behind your home. It’s only right, because any greenbelt homesite is always priced with a premium charge.

Enough for now on how to choose a homesite. If you have any questions about this process, you can always reach me by e-mail at Shaw.newhomes@yahoo.com, or by phone at (918)409-5195.

My next blog will be about choosing a home style, kitchen types, and storage needs. I will cover single or second story, 2 or 3 car garages, and more.

New Homes Guy "Included Is A Dirty Word" - New Homes Tulsa

2010-10-08T16:03:00.008-05:00

So often buyers shop for a home and judge each builder by what they include. While it seems logical, it can hurt you more than you believe possible. You have to ask yourself this question: Do I want a quality home that's going to last and appreciate without me putting a bunch of money back in for repairs and upkeep, or do I just want a pretty home with some flash?"

Builders like to confuse the process by distracting you with cookies, coffee, and crown molding. If you don't want crown molding, "included" doesn't mean free. It just mean that it's already in the price of the home, with a healthy profit margin added. Sometimes you can remove an item and get a credit, however most will remove the cost of the item and leave in the profit they want to make for that upgrade.

Before you begin looking for a builder, there are two lists you must create.

First, sit down and start a "New Home" journal. Begin by making a Wish List. List everything you can think of that you would like in your new home. Don't consider the list an option. When you have what you think is the complete list, go back over it and put the items into one of three categories: Needs, Wants, and Wishes. This list will help keep you focused on what you need, want, and dream of, and away from what someone wants to sell you.

Second, create a list of Quality Requirements. If you have very little personal knowledge of homes and how they are built (which is most people), the list may be short, so let me help you. Where I live, new homes in Tulsa are almost all built on a slab because of the clay and sand. Anytime a home is built on a slab, it must have a post tension foundation for structural integrity and longevity (I will do a full blog on post tension foundations later to help you verify if it's actually true post tension). On the quality requirements list for a new home in Tulsa, a buyer should add Post Tension Foundation. If a home is to be built in the Great Lakes area, there would be an entire list of quality requirements for a safe and leakproof basement.

As an example, I've created a partial list of Quality Requirements for a new home is Tulsa Oklahoma:

What quality of materials are being used.
What brand of HVAC system (Heating Venting and Air Conditioning)?
Are the shingles 30 year architectural shingles?
Are the appliances a quality name brand and residential grade, or just builder grade?
Is there rebar in the concrete around the home (driveway, front porch, and patio)?
Are the windows low-e with argon gas?
Is Dupont Tyvek house wrap used?
What is the R value of insulation in the walls?
What is the R value of insulation in the ceiling?
Are they using Radiant Roof Decking?
Full brick home?
What guttering come on the home?
Is there a patio, is it covered, and what size?
Is home prewired for security system?
What is done on homesite for landscaping? Is sod included?
What size amp electrical service?
How wide and how deep is the garage space?
What size is the water heater?
Are the gas lines in the home black pipe (steel) or CSST (corrugated stainless steel tubing)? As a note, I prefer black pipe.
If a two story home, are there seperate A/C units for each floor?
If a two story home, are the stairs built with 2 runners or three? Nailed, glued, and screwed?

I think you get the idea by now. Focus on quality, and the cost of the home at the quality you need. Then add in the upgrades and items you want. This will keep you from being a victim of the dirty word "included". Remember that you don't want to be sold a home, you want to invest in the right home for you. In the next blog, I will get into shopping builders and their land, and factors for choosing the right place to build your new home.

If you have any questions about building a new home in Broken Arrow, a new home in Owasso, or the Tulsa area, or if you have any questions about builders and making sense of what they include, and don't include, you can reach me by e-mail: Shaw.newhomes@yahoo.com, or by phone at (918)409-5195.