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Decision thought out and made, check. Realtor selected, check. Funds to close gathered up,
check. Pre-approval in hand, check. Everybody is on the same page as far as what we want, check. Congratulations, it's time to go find a home!
The question now is, "Do we buy an existing home or new construction?" Can you get all of the features that you're looking for in an existing home? Is there an existing home with all of these features available on the market right now or getting ready to come on the market soon? If the answer is no, then you need to consider buying a new construction home.
New Construction
With a new construction home you get to pick a development and a model of home that has the features that you desire designed into them. If a feature isn't already incorporated into the design, most builders will modify their designs (usually for a fee) to accommodate you. In the event that there are no models that are capable of incorporating your features, you can hire an architect to custom design a home for you. Many times you can find a building plan that is close enough to be modified to meet your criteria.
Custom Homes or Homes From A Plan
Building a custom home or one from a plan can present it's own set of challenges. You've got to find a lot or a piece of ground where you can build the home. If it's not in an area that has already been subdivided, you may have to run your own sewers or put in a septic system. The same with water and other utilities. The process of getting permits is usually a lot more time consuming if you are building a home on land that has not been subdivided already.
Acting As Your Own General Contractor
If you choose to go this route, I strongly recommend that you hire a reputable general contractor. Even if you're a tradesman, you can generally work out an acceptable arrangement with a general contractor to oversee the construction while you're doing what it is that you do for a living. I've seen people act as their own general contractor before and more times than not, it would have been better for them to have hired a general.
If you still desire to act as your own general, then be aware that construction lenders are going to be very skeptical and reluctant to lend to you unless you have a fairly impressive construction resume. It's not that it can't be done, but now you can't say that you weren't warned!
The positives of acting as your own general contractor are that you will have a sense of accomplishment when you are done and the rule of thumb that says, "you build three and the forth is free!"
Hiring A General Contractor
The process of hiring a General Contractor is much like the process that we talked about earlier in hiring a Realtor. The key to success is to do your research. While everybody has to start somewhere, I don't know that I would risk the huge amounts of money involved in building a home on somebody who didn't already have a track record of being able to successfully complete a quality home. Therefore, ask around. Talk to other people who have already had custom homes built. Were they happy with their builder? What would they have done differently? Would they build with the same general again?
Go visit as many custom homes and subdivision homes as you can. Don't be afraid to steal some ideas (everybody does it). When you're ready to move forward, sit down with the company that you have picked and hash out all of the details. Put ALL of your agreements into writing. For example, if the contractor tells you that it will only cost an extra $4,000.00 to have that pond put in, get it in writing! Not that the contractor is going to try and screw you, but he might and even if he doesn't, it's a lot easier to keep track of everything when it's in writing.
Buying A Home In A Development
Buying a home in a development is generally a lot easier than building custom. You've still got 
to do your research on the builder and their track record. Look at other developments that they have built. Talk to people who have built with them. Ask them if they would build with the same builder again? What would they have done different, etc. When you're satisfied with the builder and you've found a development that you like, it's time to sit down with the builder's representative to go over your choices in lot, model, elevation(the particular way that your home is going to sit on the lot), modifications and upgrades. This might sound self-serving and it is, but I honestly believe that when you meet with the builder's representative, you need to be represented by an agent. Remember this, "Buyer's are liars and seller's are thieves and builders both buy and sell!"
Modifications and upgrades cost money! They add up quickly and while most builders would like you to think that there is no play in what they charge, this usually isn't the case. Particularly on upgrades where a builder makes the majority of their profits. The mark up on some upgrades can be as high as 300%, so it doesn't hurt to do your research and have an idea of what something would cost if you were to have it done after the home is built.
I'll give you an example, I once sold a new construction home where the builder wanted to charge the buyer an extra $4000.00 to upgrade to a higher efficiency furnace and air conditioner. I asked my brother Tony, who owns Mitchell Heating and Cooling, how much the extra equipment and installation should costs and he estimated that it should have costs around an extra $1,200 to $1,500.00. We brought this up in negotiations and the builder did the upgrade for the $1,500.00!
If you're looking for a bargain in new construction consider buying early in a project (the builder likes to get them up and running as quickly as possible so are sometimes willing to give incentives early in a project) or late in a project (as builders near the end of a project they sometimes lose interest and tend to focus on their next development. Also, it's sometime hard to sell those last few lots, so they'll cut a deal to close the subdivision out.
Buying An Existing Home
Buying an existing home is generally a lot easier than buying new construction. You know what you're getting because you can see, smell and touch it. That said, it's a fact that every house is in the process of falling down. Even if you left a house undisturbed for a number of years, when you came back you would see signs of deterioration.
Due to this fact and to the wear and tear that having somebody living in a house you need to make sure that you know what you are getting into. A building inspection by a reputable and certified building inspector is always a good idea. It's not a perfect process, but a building inspection can bring to your attention things that need to be fixed immediately, as well as things that you should keep an eye on as time goes by.
Other inspections that you may want to have are pest inspections to make sure that the home doesn't have termites or other pests that could damage your home and environmental inspections such as for radon gas.
Always Use An Agent!
As mentioned above, Builders both buy and sell property on a regular basis and there is a tremendous amount of due diligence needed when buying an existing home. In both situations, you need someone looking out for your needs. Be it a ValueList agent or someone else, don't go into a gun fight only carrying a knife!
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