Many people are wondering, "I want to acquire a custom home, but I don't know where to start." The first step to getting a custom home is "preliminary planning."
This article is aimed at those who want to understand the steps involved in purchasing a custom home, from preliminary planning to land acquisition and the construction of the home.
For those considering a custom home, we hope this information helps you realize your dream of building the perfect house.
The process of building a custom home follows these steps:
Seven Steps from Preliminary Planning to the Completion of Your Custom Home
1. Preliminary Planning
2. Land Search
3. Finding a Construction Company
4. Land Purchase and Design
5. Start of Construction
6.Completion and Handover
7. Move-In
Here, we will provide a detailed explanation of each item. If you have any uncertainties about home building, please refer to this guide.
1. Preliminary Planning | Gather Family Needs
First, listen to your family's wishes. Organize their opinions and information, and decide on the desired neighborhood, layout, design, and budget.
If there are non-negotiable conditions or priorities, it is best to establish them at this stage. Utilizing housing magazines and the internet can help solidify your vision.
2. Land Search | Find Your Desired Area
Next is the land search. Be sure to visit potential plots in person to assess them. Key points to check include the following items.
Once you have decided on the land you want to purchase, you will submit a letter of intent. At this stage, it is still a provisional application, and the contract has not been finalized, so please be aware of that.
3. Finding a Construction Company | Contract with a Reliable Builder
Construction companies include house manufacturers, builders, and design firms. While you can choose any construction company, it is important to find one that you can trust. Some companies offer integrated services, from land search to construction.
Once you have narrowed down a few construction companies, share your desired plan and request rough estimates. After receiving the estimates, compare them and decide on the construction company you wish to work with, then proceed with a provisional contract.
4. Land Purchase and Design | Plan Thoroughly
Once you have chosen a construction company, you will receive an important explanation from a licensed real estate agent and proceed with the land contract. After finalizing the land contract, you will move on to planning with the construction company.
During planning, communicate your design and layout preferences and have detailed discussions with the design representative. It can be helpful to refer to showrooms for equipment selections.
After the discussions, you will submit a building confirmation application to the authorities. It typically takes about 1 to 2 months to receive approval.
5. Start of Construction | Greet Neighbors at This Time
Once you receive building confirmation approval and the land handover is complete, construction can finally begin. Whether to hold a ground-breaking ceremony or a topping-off ceremony when the framework is completed is up to the homeowner. Recently, more regions have been skipping these ceremonies, so if you choose to have them, make sure to confirm the costs in advance.
This is also the time to greet your neighbors. Some construction companies will manage neighbor relations on behalf of the homeowner.
6. Completion and Handover | Check the Final Results After Completion
Once the building is completed, an inspection will be conducted by a third party to ensure there are no discrepancies to the building confirmation application. During the walkthrough, check the completed work with the construction company representative. If there are any defects or differences from the plans, request repairs from the representative.
Upon passing the inspection by the third party, a certificate of completion will be issued, and the handover will take place. You will receive the keys at the time of the handover.
7. Move-In | You Can Move in Any time After Receiving the Keys
After the handover, prepare for your move by cleaning the new home and installing curtains. It is advisable to allow about 1 to 2 weeks between the handover and your move-in date. This is also the time to submit your change of address notification to the local government office.
Points to Consider When Purchasing a Custom Home
There are two important points to keep in mind when purchasing a custom home. Below are the key considerations.
Allow for Flexibility in Your Schedule
The time it takes from planning to completion of a custom home varies from person to person. Here are some rough estimates:
• Purchase Planning: About 1 to 3 months
• Searching for Land and Construction Company: About 3 to 6 months
• Design and Loan Application: About 2 to 6 months
• Construction to Completion: About 5 to 8 months (for wooden structures)
• Handover and Move-In: About 1 month
If the building structure is made of reinforced concrete (RC) or steel, it may take over 10 months from the start of construction to completion. Since this varies depending on the scale of the building, be sure to confirm the construction period and completion date with the construction company in advance.
Depending on how much time you spend at each stage, you should plan for about a year and a half for the entire process. Aligning this timeline with family milestones like schooling or job changes will help ensure a smoother transition.
Simultaneously Search for Land and a Construction Company
Once you start searching for land, begin looking for a construction company at the same time. Here are three reasons why it is beneficial to decide on a construction company early:
• The effectiveness of the land purchase letter is only about two weeks, which is not a long time.
• You generally cannot obtain a housing loan with just the land.
• The construction company can help assess whether the land can accommodate your desired building.
Choosing a construction company that also handles land acquisition can facilitate a smoother transaction.
What Points Should You Ask During the Important Matters Explanation?
When purchasing real estate, a licensed real estate agent will provide an "Important Matters Explanation." The explanation document contains many important items related to the property and the transaction.
Particularly, pay attention to the following items:
The Important Matters Explanation often contains many technical terms, making it easy to leave without fully understanding. Since this explanation includes crucial information for the contract, be sure to ask for clarification on any terms or explanations you do not understand right away.
Summary
Building a custom home requires careful preparation beforehand. In particular, assessing the land can be difficult based solely on appearance. Be sure to involve the construction company's representative in the land evaluation.
Additionally, it is important for the entire family to verify and discuss whether the area will be a safe environment to live in, considering disaster information and the characteristics of the neighborhood.
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