Tear Down Overview
This video reviews the steps of the Build-On-Your-Lot process beginning with financing with a construction loan.
- Steps in lot acquisition process
- Financing
- Schedule a call with us
- Determine overall budget
- Site Considerations
- Understanding site costs
- Writing a contingent contract
- Performing feasibility studies
- Removing your contingency and going to settlement
- Financing:
- Most buyers will need a construction loan, which is a line of credit you draw down on as you go through the process
- First draw on construction loan typically pays for land and draws after that pay for construction
- Construction loan is converted to permanent financing after home is completed
- Schedule a call with us so we can help you through the next steps, talking about the home you’d like to build so we can determine your budget
- Transaction price consists of: price of your new home, the price of the land, and the price
- Price of your new home
- Price of the land
- Price of site costs
- Site considerations: when looking for a lot, you’ll need to get an understanding what features can be afforded by the site, e.g. a walk-out basement or a garage under-condition
- Site costs are the costs that come from developing the site, e.g. tree removal or dirt export
- We’ll work with you through the feasibility studies, which consist of things like soil tests, lot-fit verifications, and HOA compliance
- Once feasibility studies are complete, it’s time to remove the contingency and head to settlement
John Jorgenson of Long & Foster is the exclusive agent for Stanley Martin Custom Homes.