Building in Billings Part 1 of 3 – The Pre-Construction Phase: What to Know Before You Build
I’ve talked about selling in Billings. I’ve talked about buying in Billings. But one thing that I may not have talked about enough? BUILDING your dream home in Billings!
In the past this was a huge topic of conversation for me, especially as I went through the journey of building the house that built me. But shortly after building that home, life took me in a different direction, which led to the journey to our forever home!
But that doesn’t mean that information about building shouldn’t be readily available for YOU.
Building your dream home from the ground up is such an exciting journey, but it comes with its fair share of challenges and a LOT of patience is needed throughout the entire process.
One thing I know for sure is that the building process can be made a lot more simple when you know how to go about it correctly, which is exactly why I wanted to create The Building in Billings series here on the blog.
Throughout this 3 part blog series, we’ll be diving into:
The Pre-Construction Phase – what to know before you build
The Building Process From Start To Finish
Finalizing Your Build – moving in and next steps
My hope throughout this series is that you can ease some of the stress and overwhelm that can come with the building process and make all of your decisions with ease – so let’s dive in!
The Role of a Real Estate Agent While Building
Much like you need a real estate agent to help you properly navigate the buying or selling process, a real estate agent also plays an important role when you’re building!
That’s why the first step before you ever break ground is finding an agent in your local area (if you’re in Billings, hi hello can’t wait to meet you!). When you connect with a trusted real estate agent prior to building, they will:
Help You Find the Right Lot
Deciding to build is a great thing, but finding the perfect piece of land can be tricky, but that’s where a real estate agent comes in handy!
Just like an agent can help you find the perfect home that checks all of your boxes during the buying process, they can also help you find the perfect piece of property that will fulfill your needs for building.
One of the most overwhelming parts of building can be finding land in the first place, so having an agent on your side ensures that someone else is helping you assess lot availability, while also taking other important factors into consideration, such as zoning regulations.
Additionally, a real estate agent can help make sure that you’re looking for property in areas that fit your vision and lifestyle!
Negotiate With Builders
You’ve heard of negotiation when it comes to buying or selling, but there's a lot of negotiating that often happens among builders as well! From pricing to added upgrades, a real estate agent can help advocate on your behalf to get the best deal and ensure that you’re staying within budget.
Keep the Building Process on Track
The home building process can be long and complex and there’s quite a few hiccups that can potentially happen if you’re not careful.
And in my opinion, you shouldn’t have to be the one to make sure that things are staying on track and you definitely shouldn’t have to be the one putting out fires if they ever come up.
A real estate agent can essentially serve as a project manager for your build and help ensure that all necessary steps are being taken at the right time, including inspections, walkthroughs, and contract reviews.
Advocate for Your Interests
Lastly, and maybe most importantly, an agent can help advocate for you throughout the entire process from start to finish. If you’ve never built a home before, there’s a lot of things that you may not be familiar with and that shouldn’t be held against you.
Whether it’s ensuring that a contract clause is in your favor or that deadlines are met, having a knowledgeable real estate agent on your side can protect you throughout the entire build process.
How To Choose The Right Builder
Right behind choosing a trusted agent, the next thing you want to do is choose the right builder! 👷🏼♂️
Unfortunately not all builders are created equal and you’ll want to make sure that the one you hire aligns with your vision, budget, and expectations.
Here’s a few things I recommend doing before choosing your home builder:
Research and Reviews – just like you wouldn’t buy something on Amazon first before reading the reviews, I reallyyyyy hope you’d do the same for such a big investment for your life!
To start the hiring process for your builder, conduct a simple search for professionals in your area and then thoroughly read their reviews and testimonials from previous clients to get a sense of their reputation.
And when in doubt, ask for references and don’t hesitate to visit completed projects to see their quality of work firsthand!
(P.S. I highly recommend LC Custom Homes if you’re building in Billings!)
Check for Proper Licensing and Insurance
Trust me when I say that the LAST thing you want to do is hire a builder that’s not fully licensed or insured. Hiring a builder that has all of their bases covered will protect YOU if anything goes wrong during the build and guarantees the builder meets state or local requirements!
Get Multiple Quotes
I know it can be tempting to hire the first builder you find that has a good reputation, but it’s always a good idea to gather a few quotes from multiple builders. This allows you to compare costs and scope of work to make sure you’re getting the best value for your budget.
And pro tip: if you receive a quote that’s significantly lower than others, ask questions! This could indicate a lack of quality or hidden costs and you don’t want to deal with that can of worms once you hire them.
Meet With Your Builder Before Hiring
Lastly, before making your decision, make an appointment to meet with your builder! Not only does this give you the opportunity to ask detailed questions, such as their process, how they handle changes or delays, and their timeline expectations, but it also gives you the chance to learn their personality and get a sense of who they are as a person.
Meeting with your builder is one of the best ways to know if you can trust them and get along with them throughout the building process, both of which could make or break the entire experience for you.
Questions To Ask a Potential Builder Before Hiring Them
Are you licensed and insured?
How many years of experience do you have and do you have experience with projects similar to mine?
Can you provide references or examples of previous work?
What is your typical project timeline?
How do you handle changes or upgrades during the construction process?
What warranties or guarantees do you offer?
How do you handle cost overruns or unexpected expenses?
What does your standard contract include and how will payments be scheduled?
Who will be my point of contact throughout the project?
How do you handle inspections and ensure the build complies with local building codes?
How do you ensure quality control during construction?
What is the process for resolving disputes or issues?
How To Budget For Your New Build
Once you’ve chosen your builder, it’s time to BUDGET! 💸
Similar to how you have a certain budget that you don't want to go over when buying a home, you want the same for when you’re building a home.
The most important part of setting your budget for building is that you include both expected and unforeseen costs because when it comes to building, you never know when something is going to be more than what you originally planned for.
Here are some tips on how to budget for your new build:
Factor in Land Costs – the cost of the land itself is a big part of your overall budget. Make sure to factor in land preparation costs, such as grading, utilities, and permits, which can add significantly to your expenses.
Consider the Entire Scope of Construction Costs – these include everything from materials and labor to interior finishes like flooring and cabinets. Be sure to discuss all details with your builder from the very beginning in order to avoid unexpected costs later on.
Plan for Additional Costs – when setting your budget for building, you’ll likely factor in all of the obvious things, but don’t forget about extras like landscaping, fencing, driveways, appliances, and even lighting, which are often left out of initial builder quotes.
Set Aside an Emergency Fund – I’ll be honest with you… construction projects rarely go exactly as planned, so it’s smart to set aside 10-15% of your budget for unexpected expenses, like delays, material shortages, or changes to your original plan so that you aren’t caught off guard if or when something goes wrong or plans change!
Overall, by having a well-rounded budget in place from the very beginning, you can avoid surprises down the road and stay on track financially throughout your building process.
Types of Construction Loans To Choose From
Along the same lines of budgeting, let’s talk financing!
When you’re buying a home, there are several loans to choose from (I’ve listed those here!), but the same is true for new builds.
There are a few different types of construction loans for you to choose from:
Construction-to-Permanent Loan – this is the most common type of construction loan, and it combines both the construction loan AND your permanent mortgage into one loan. With this loan, you’ll make interest-only payments during the construction phase and then, once the home is complete, the loan will convert to a traditional mortgage.
Construction-Only Loan – this loan only covers the construction period. Once the build is finished, you’ll need to take out a separate mortgage to pay off the construction loan. This option can be more expensive because you’re essentially paying for two separate loans, but it may be the right fit if you already have financing in place for after the construction is complete.
Renovation Loan – if you’re building on an existing structure or significantly altering a home, a renovation loan might be the best option. This allows you to finance BOTH the cost of the property and the cost of the construction or renovation.
To have a better understanding of which construction loan is right for you, always talk with your mortgage lender to ensure you’re making the best choice for your specific scenario!
The Home Building Timeline
And finally, after you’ve chosen a real estate agent to work with, a builder for your project, have set your budget, and have your financing squared away, it’s important to understand what the home building timeline looks like!
Hear me when I say: your best friend during a new construction project is going to be PATIENCE!
As someone that’s been through the process firsthand, I know what it’s like to want things done quickly, but trust me – this is something you simply can’t rush, especially if you want it done RIGHT!
The home building process can take anywhere from six months to over a year, depending on the size and complexity of your project, so here’s a general timeline of what to expect:
Pre-Construction (1-3 months) – you’re here! This phase includes securing your lot, selecting a builder, designing your home, obtaining permits, and preparing the site for construction.
Foundation and Framing (1-2 months) – once the land is prepped, your builder will pour the foundation and start framing the structure of your home.
Plumbing, Electrical, and HVAC (1-2 months) – after framing, your builder will install the plumbing, electrical systems, and HVAC. Inspections will be conducted throughout this phase to ensure everything is up to code.
Interior Finishes (2-3 months) – once the major systems are in place, interior work begins, including drywall, flooring, cabinets, painting, and trim work.
Final Walkthrough and Closing (1 month) – yay, you’re almost to the finish line! The final stages include inspections, touch-ups, and the final walkthrough with your builder. Once complete, you’ll move into the closing phase where the home is officially yours!
Ready to start building in Billings?
By now I know what you might be thinking… this feels like a LOT! And when you’re reading all of this at once, it definitely can, so I get it.
That’s why it’s so important to partner with a local, trusted real estate agent that works with you from start to finish to make the building process feel way less overwhelming and will help you get connected with all of the crucial people needed who have been vetted and trusted.
If you’re local to Billings and are ready to start the process of building your dream home, CLICK HERE to connect and I’ll help you get started on the right foot.
And if you aren’t local to Billings, good news for you – I know people. 😏 Connect here and I’ll get you in touch with a trusted agent in your area to start the home buying process with ease!
P.S. Want a checklist that breaks down ALLLL the decisions you need to make when it comes to customizing your home?! Like cabinet pulls, door knobs, appliances, faucets and everything in between. Our new build checklist has you covered!