Are You Planning on Building a New Home in Oahu?

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Today, I want to talk about some of the things involved in building your own home. There are many people involved in the process and there are many factors that can make it difficult.

The first thing to decide is where you want to live. There are a lot of things that go into it. Deciding on a lot is key, and the best way to do that is to go online. Often times, you'll find a property that is in bad shape that you can tear down and rebuild on the lot.

Another huge decision you need to make is how much you can afford to spend on the lot. When you buy a run-down property to knock down and build a beautiful home in its place, you have to ensure you have the funds to make it happen before you begin the process. A good rule to keep in mind is that the purchase price of the lot should be 1/5 to 1/4 of the amount that you're going to spend on the house. So, if you buy a $1 million lot, you want to put a $5 million house on it. Establish your budget accordingly!

If you have any questions about building a new home in Oahu, don't hesitate to reach out to me. I've helped many people build the home of their dreams and would love to do the same for you!

Financing Your New Construction Home

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After you've found the lot of your dreams, the next step is determining how you're going to purchase it and finance the building procedure.

First, go to your local banker and talk about your plan. Typically you want to buy the lot or the tear-down house with cash, and then finance the build and convert that loan into a permanent mortgage. This way, you don't have to deal with double-billing.

Again, you're looking to determine what your build cost will be. At that point, you need to hire an architect, lay out what you want, and how much you want to spend. Typically, architects charge between 10% and 20% of the build cost. Included in the architect's services is management of the general contractor and builder to make sure everything is done according to plan.

At that point, your architect will help you find a builder. If you have any other questions about the new construction process, please give me a call or send me an email. I look forward to hearing from you!

Can We Help You Find Your Perfect Lot?

Selling Your Oahu Home? Get a free home value report

Buying a Oahu home? Search all homes for sale

Aloha! After listening to my last two videos on buying and building a home, you know it takes a while to find that perfect lot, perfect architect/builder, and all the other details that go into it. A smart thing to do if you are in this situation is hiring a real estate agent, who essentially works for free on this end. That’s because their commission is actually paid by the seller of the property for helping you find the perfect lot.

He or she often has contacts and knows about properties that are maybe a little off the beaten path or in secret locations in a given area. When it comes to the type of agent you should hire, we recommend looking for a CRS real estate agent, which is the highest designation you can get. It stands for certified residential specialist, and they do broker price opinions as well as regular sales.

When someone comes to me, if I don’t have a home that I’m working with a developer on, we do searches in the local area to find something appropriate. If you’re looking to find a lot here on Oahu, your best bet is visiting your friendly broker or agent, like myself. If you have any questions for me or about my team, feel free to give us a call or send us an email any time.