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.

Follow Us!