New Construction in New Jersey
It is sometimes difficult to find a home that meets your needs, has the features your family desires and is not a carbon copy of one down the street. Of course, it is always possible to purchase an older single-family home in one of New Jersey's established neighborhoods and renovate it to suit your preferences, yet there is another option that people do not always think of: custom home construction.
New construction in New Jersey, particularly new residential construction, continues to be on the rise. In fact, some areas have seen as much as a 20 percent increase in new builds since the end of 2013 and the beginning of 2014. The numbers for 2015 were even brighter - a great thing for builders and customers alike. Suburban areas, popular cities and even regions out in the country and along the Shore are seeing a boost in custom homes. And the reason is simple, really: Homeowners are having trouble finding the total package. After extended home searches with lackluster results, working with a team of professionals to construct the perfect dream home is a practical option that yields fantastic results.
Taking the plunge into a new construction project is not one to take lightly; after all, constructing your single-family residence is an investment in your future. The process is multi-faceted and is full of decisions to be made. That being said, working with a reputable architect and contractor makes the process as simple and seamless as possible. The combination of skills, knowledge and experience provided by this team of professionals allows you to keep with current design trends while incorporating the best building materials and sticking to the set budget.
Current and Completed Custom Homes by Space & Mark LLC
Process of Building a New house
Finding a Lot for a New Construction Project:
The first step in the new construction process is the acquisition of land. This process is one that can be simple and straightforward or complicated and drawn out, based on any number of factors. As a buyer, you have the option to purchase a lot on your own or directly from a developer in an up-and-coming subdivision. The latter option typically comes with the shortest time frame, as the developers use their own construction companies and designers to complete the build. While upgrades and various options are available to the client, the floor plans and exterior looks of the residences are often very similar. On the other hand, purchasing a lot from a land owner gives you the most freedom in your designs, yet a longer time frame is to be expected. The final option in the land acquisition process is buying a lot that is already complete with an existing home. In this case, the current residence would be torn down, and the lot would become a blank canvas for a new build.
Of course, people construct new houses in New Jersey in a variety of settings; perhaps the most important part of the land acquisition process is finding the location that is best for your family. Consider factors such as the neighborhood surroundings, the school district and the proximity to work, as well as the commute to favorite restaurants and frequently visited locations, such as recreational facilities, concert halls or even sport fields. While the scenery in a neighborhood may have you singing, if the property is not close enough to the things you and your family love, you will not be happy in the long run. When it comes to new construction for the purpose of long-term occupancy, looking 3, 5 or even 10 years down the line is essential.
One simple way to get in touch with the feel of a neighborhood is a simple drive through. You as the buyer are welcome to do this on your own; however, often, features of a home go unnoticed to the untrained eye. By letting an experienced real estate agent or a designer, come along for the ride, you are gifted with useful insight on factors which you can pass down to your architect.
Hire an Architect to design your New Construction Project:
There are plenty of drafting and design software out there on the Internet, and with websites like Pinterest and Houzz, it is easy to get a million ideas and examples; however, designing a whole house with seamless transitions from room to room is extremely difficult for untrained persons. Further, anticipating the common challenges, or ways around potential problems, takes a high level of skill and experience. Designing your dream home is best left to the professionals.
Architects are invaluable during the planning and design processes. Depending on the region in which the residence is being built, specific building and zoning requirements must be followed for new construction homes in New Jersey. There are building setback lines and building height limits to follow and other factors that determine the positioning and shape of your new residence. Of course, in working with a team of professionals, these factors would be considered during design and planning process.
Perhaps the very best thing about building a home from scratch is having the ability to customize everything. As the client, you have the power to decide how many bedrooms and bathrooms your home will have, the floor plan - one story versus two - and the layout as a whole. If there were features you liked during your home search or neighborhood drive-throughs, such as an entertaining kitchen, a great room, a finished basement, a second-story laundry room, etc., you have the opportunity to include them in the design of your home. Your architect will have ideas as to how to incorporate all of the features you desire
Obtain Financing for the Construction and Land Acquisition:
There are no two ways about it, the construction process is expensive. For most customers, getting a construction loan is the best way to finance these costs. Construction loans differ from regular loans in several ways, but the most notable is their length. This type of financing is only available during the construction process, which is typically one year or less. As such, most construction loans have a maximum period of 12 months. Throughout the course of the project, the various approved contractors submit their invoices to the general contractor. From here, the general contractor submits a request to the entity doing the payouts for a "draw" in the total amount. Many times these payouts are handled by a title company. The interest on the loan does not begin until the first draw is made, and then interest is only charged on the most current total amount. If the total amount drawn out of the maximum is $50,000, the interest is based on $50,000.
When looking at construction loans, you must decide if one-step or two-step financing is the correct choice for your project. One-step loans include the closing for the construction loan and the permanent financing (i.e. mortgage) in one shot. These loans save time in closings and paperwork, yet are very rigid in their timelines and amounts. One-step loans are not the best option for custom homes, as sometimes things do not go according to plan and extra money and/or extra time are required. Two-step loans, on the other hand, are much more lax. For two-step loans, you start with getting a construction loan. The loan runs its course over the construction process, and once the final draw has been made, the final inspection has been passed and you as the customer are 100 percent satisfied with your brand-new home, then you get your permanent loan. With a two-step process, you do not have to use the same bank or credit union for your construction and permanent loans if you do not want to, and your timelines and budgets are much more flexible: the perfect combination for custom home building.
Construction of your New Home:
No matter what area you are building in, a building permit is a necessity to ensure the construction project is approved and work does not get halted or delayed by local governing bodies. Those projects that must begin with the demolition of an existing structure must also have a demolition permit.
No new development, especially in a ground-up situation, is going to be without some glitches along the way. Understanding the new construction process and working with a group of trained, knowledgeable persons is the best step towards success when building the home of your dreams in the Garden State.
For a typical wood-framed, single-family residence, the construction process typically takes less than a year's time. Though there are always variable factors, homeowners can expect as average start-to-finish timeframe of 9 to 10 months. There are numerous inspections along the way to ensure the quality of the construction is up to par and that the proper procedures are being followed. This provides peace of mind for you as the homeowner and is helpful for the general contractor, the architect, the county and all other parties involved in the construction process. Upon all final inspections, an occupancy permit is available, and your adventure as the owner of a custom home begins.