The 2010 International Builders' Show (R) | January 19-22, 2010 in Las Vegas, NV

The weak credit availablity and low demand will make 2010 another rocky road for many home builders.  This article details the issues centering on the Home Builder Expo in Las Vegas this month: Home Builders 2010.

Saying that building a home starts with finding the right location and ends with moving in is quite simplistic. The truth is that in between finding the location and finishing the home, a lot of underlying processes take up much time, money, and energy. Educating yourself on the things that you need to know – planning the budget, choosing the location, and picking a builder with great track record will make the whole process easier.

These days, interest rates are at an all-time low. Now is a great time to build your home if you have the means for it. There are many types of lenders that you can work with, but finding one that has knowledge specifically in construction lending will be better. It is a must that you find a construction lender that understands the ins and outs of financing programs so that they can find one best suited for your needs as you construct your home. This is an important phase in planning to build your house because the loan amount that you will qualify for will determine much about the kind of home that you will be able to build. It is also good if you can find a lender that has an online method of checking your loan status and other particulars. This is for your convenience, so that you can check on the details of your loan at any time.

As a homeowner, you can cut on your costs by opting for a loan that covers the construction phase and converts to a permanent loan once the construction is finished. A one-time close CTP (Construction-to-Permanent) Loan can do this for you.

Before CTPs became a popular option, homeowners had to take out two loans; one for the construction phase and a permanent loan after the home is built. With CTP loans, you won’t have to reapply and pay for two different kinds of closing fees. It streamlines the solution for your financing needs into one neat package. After your loan converts from a construction to a permanent loan, you won’t have to pay any other fees anymore. CTPs also typically have interest protection so you’ll have a fixed interest rate even if the rates begin to rise.

CTPs are reimbursement loans which mean that funds are disbursed as the construction of your home enters different key events. This gives the builders more flexibility in terms of pursuing building projects around your home.

Planning For Your Loan

When taking out a loan, it is important to also take into consideration your lifestyle as well as your family’s lifestyle. Some people fall into the trap of borrowing too much or too little and ending up having to pay for some parts of the house out of their pocket. It’s also good to keep unpleasant surprises at bay by asking your lender how much the closing cost would be. Typically, you will need to ask about the title costs, loan fees, appraisal fees, inspection cost, and the likes.

Working with a lender that has a website where you can check disbursement schedules and schedule of fees would also be helpful.

Understanding How It Works

When you apply for a CTP loan, it means that you are asking the lender to determine the value of your new home, which has not yet been built. In order to do this, you will need to give the lender details about such things as the building plan, the type of materials you will use and their descriptions, and also the total cost of building the house.

The lender would also sometimes ask for you to submit a copy of your builder’s license together with a statement that the builder is capable of carrying out the construction of your home until it is complete. Of course, you and your builder are exposed to certain risks during the building stage of your home. Lenders will usually require additional insurance coverage such as:

• Course of construction casualty insurance – An insurance policy that covers “all risks” including fire, vandalism, replacement cost, builders’ risk, and others. The owner would be the policy holder, and the insurable amount is equal to either the replacement cost or the total loan amount, whichever is lower. Once the construction loan gets converted to a permanent loan, the insurance policy also gets converted to an “all risk” homeowners’ insurance coverage.
• Workers’ Compensation Policy – This should be taken out by the builder to cover for work-related accidents that subcontractors may encounter while building your house.
• Flood Insurance – This is a requirement if your house will be built on a government-declared flood zone.
• General Liability Insurance – This can be provided by you or your contractor. If your contractor provides this, the coverage should be a minimum of $1,000,000 or certain types of policies that have a broad coverage of liability endorsement. If you opt to pay for this insurance, the requirement is a minimum of $300,000 per occurrence which covers both property damage and personal injury.

Building a home means a lot to most people. The journey is filled with many challenges from start to end. Even if you haven’t started building your home yet, knowing about these things will be beneficial so that you can start preparing as early as now.

When in the closing stages of building your home, there are a few things you should remember. These are the things that new homeowners typically forget but are also the things that are very important in making sure that things will run smoothly after you’ve moved in.

1. Make sure you know all the details about the warranty your builder provides – You should know what company carries the warranty that your builder provides. It’s a good idea to walk around the interior of the house and inspect everything from fireplace to air conditioning system, to the water heating system. You should do the same thing to your exteriors; inspect the paint, shingles, garage doors, etc. A good builder will usually have a checklist of things that have warranty and need to be checked. Get a copy of the checklist and keep it in file for your maintenance checks. Remember that as the owner of the house, you have the responsibility to check the parts of your home that is under warranty before the first year has ended.
2. Keep yourself on top of the situation when it comes to your builders and his suppliers – Some homeowners prefer to shop for their own appliances, while some opt to have the builders buy the appliances for them so that they’re ready when they move in. Make sure that the appliances are ready when the builders say they would be. If they’re not ready, make sure they have an alternative solution until the appliances are ready. Check with the builders once in a while to make sure that they make good with the promises that they’ve made.
3. Make sure that the utilities are already transferred to your name by the time you move in – Builders will usually have utilities under their company name until you move in. Avoid disruptions in your service by making sure that the utilities are transferred to your name before or by the time you move in.
4. Check whether or not your furniture will fit into your new home’s door – There’s nothing more frustrating than to realize on the day that you are supposed to move in that your beloved antique living room set won’t fit through your home’s doors. Check your furniture to make sure that they fit so that the builders could make the necessary adjustments on the doorway.
5. Mark existing nicks and marks on the walls – If there are nicks and marks on the walls prior to moving; just mark them with something that won’t damage the surface to make sure that the damage was done before you moved in. Marking with painter’s tape is a good idea so that you won’t damage the surface further.
6. Check everything before you move in to make sure the builders don’t void the warranty – Do a quick rundown on the day before you move just to make sure that all warranties are intact and have not been voided by the builder. Before you change anything in the house because you didn’t like the way the builder did it, you should also check whether or not what you will do will void the warranty. Before you change anything, check if it can be done by the builders instead of you.
7. Make sure you know if you need to finish something before closing – Check whether or not you need to finish an addition to the house or anything else before closing. Some contracts require you to finish everything you need to do (like an additional deck or a gazebo) before you can close.
8. File all your warranties in one place – Moving in may become a flurry of paperwork and things that need to be in order. Don’t lose your warranties in the process. Just keep all warranties in one file and in a safe place. Also, you may want to record all the factors that may contribute to the deterioration of the parts that have warranty. Take down notes about extreme weather changes like storms, or other eventualities like earthquakes.
9. Have your landscaping done before you move in – It’s best to have your landscaper (if you’ve hired one) do the landscaping a few days before you move in so that you’ll feel like you’re moving in to a complete house already.
10. Take future add-ons into consideration – Some people think that choosing the cheaper option is good, but there are times when it’s better to spend what you can now to have the features you want built in on your house. It may be more costly to upgrade or add those features on in the future. For example, it may be more costly to have a fireplace added on to your bedroom later than if you just had the builders add it now.

The kitchen is undoubtedly a focal point for a lot of homes today. This is the place where families are most likely to gather and make memories over dinner conversations. Builders need to get up to date with consumer preferences when it comes to kitchen structure and design.

Biggest Selling Point

How a kitchen looks can be a major selling point or a deal breaker for people looking for a home to buy. One of the things that your buyers would probably look at is how your kitchen cabinets are structured. Trends show that most people these days prefer bigger kitchens even if they don’t often cook at home. Studies of these trends also show that buyers prefer functional cabinet systems instead of just pretty-looking ones. As far as appearances are concerned, more people prefer an informal design in their kitchen rather than formal designs. More people are also concerned about the appearance and functionality over the price and flashiness of kitchen systems.

As far as new homeowners are concerned, most prefer to have their kitchens opening to an adjacent room so as to feel that it’s a vital and accessible part of the house. In terms of decorating the kitchen, more people are opting for a cross cultural experience as the popularity of Asian and Hispanic influences in designs are becoming more popular. Rustic colors, distinct geometric designs, a streamlined look, and dark wood are all the rage in designing kitchens these days.

Since kitchen cabinets are usually purchased along with the home, it’s important that builders have an understanding of what systems go along with the design of the kitchen itself. Current designs for kitchen cabinet systems offer an interesting line of choice of cabinets in varied shapes, sizes, and functionalities. New homeowners these days are more conscious not just of the attractiveness of the design but also with the durability of the systems and their functionality. A lot of the newer designs incorporate dark with light wood finish or an antique style finish accomplished through glazing.

Supplying attractive and efficient cabinet systems are not just limited to bathrooms and kitchens anymore. The demand for a better cabinet system is becoming more popular especially in dual-purpose living spaces.

The Growing Need for Organization

As home owners live in a house longer, they naturally accumulate more gadgets, books, and other belongings. The need for ways to integrate organizers into living spaces is continually growing. Examples of such organizers may include more spice racks, roll-out cabinets and trays, pull-down racks, shelves, and more. Added designs and details are also popular for kitchen systems these days, but avoid over decorating or putting too much embellishments on cabinet systems. Consumers these days prefer a casual atmosphere with maximum functionality included.

Green building is a great way to differentiate your buildings from others. Green building is getting more popular these days, and more buyers are looking for homes that are built with ecofriendly materials. However, there are also other things you can do to make sure that the house you build is safe for the people who are moving in.

The National Center for Healthy Housing has developed a list of things you can refer to when checking if the home you are building can be considered healthy. A lot of evidence points to the fact that houses can greatly contribute to people’s poor health. Cases of lead poisoning, mold formation, lung cancer, and asthma are just a few examples.

With a little planning, you can take your green building practices and give your system a healthy spin. Here are a few examples:

• Keep your workspace dry – Mold formation can be a potentially dangerous situation for homeowners. To avoid this, keep your workspace dry and in an environment with a controlled temperature.
• Keep your workspace clean – Employing a building system where dust and debris is reduced will make sure that the homeowners move into a cleaner home. Invest in upgrading your equipment and hiring skilled craftsmen to minimize material waste, at the same time helping the environment.
• Keep your workspace well-ventilated – Ventilate the rooms in the house while building it to prevent contaminants from being concentrated indoors. Make sure a good flow of air goes through the living room, kitchen, bathrooms, and fireplaces. Even if it’s acceptable in some building codes to let some gas models of fireplaces vent indoors, opt for the healthier option of installing models that vent outdoors.
• Keep the house safe – Put extra safety features on all floors of the house. Gas poisoning can happen quickly and silently, so it would be good to install carbon monoxide detectors in addition to smoke detectors. Also provide alternative means to get out of the house in case of fires or other emergencies. Advise the homeowners to have their HVAC (Heating, Ventilation, Air Conditioning) systems inspected annually to make sure that they’re properly cleaned and maintained.
• Keep the house contaminant-free – Use paint that has low VOC (Volatile Organic Compound) levels to keep contamination out of the house. It’s also good to include a mud room in the house plan so that shoes, boots, and umbrellas can be kept there before entering the living space.
• Keep the house well-maintained – It’s a good idea to give homeowners a checklist of things that they can inspect in terms of regular maintenance. Some homeowners (especially first time homeowners) might overlook some things.
• Keep pests away from the house – Make sure that cracks and openings are sealed so as not to invite pests into the house. Educate the new home owners on how to keep the house pest-free by keeping food in sealed containers, using non-toxic pesticides, and keeping cracks and openings around the house sealed.

It may also be a good idea to give the homeowners a safety manual which they can read through so that they can have a better understanding of how they can keep their home safe. Here are a few things you can include in the manual:

• Keep the house dry to discourage the formation of mold and pest infestation which causes or triggers asthma attacks.
• Keep the house clean to maintain a contaminant-free environment.
• Keep the house pest-free by using non-toxic pesticides. Recent studies show a correlation between pest infestation and asthma episodes in children.
• Keep the contaminants out of the house. Chemical exposures have more intense effects indoors than outdoors. Examples of such contaminants include second hand smoke, volatile organic compounds, lead, pesticides, and others.
• Keep your house well-ventilated to encourage better respiratory health.

Building green would be more effective with a better understanding of how to make a house safe. There are many instructional materials available in the market to help you understand this further.

Another example proving not much thought was put into the current “Health Care” bill is the inclusion of:

A provision that penalizes small construction firms if they don’t offer insurance to their employees. Under the bill, businesses with more than 50 employees would have to pay a $750-per-worker penalty to the federal government if any of their employees purchases subsidized insurance on their own. The new version of the bill lowers that threshold to five employees for construction firms.

This is incredible but there will be more discussions before the final passage.  Hopefully someone can talk some sense into the Washington establishment.

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November new home sales suprised everyone on Wednesday. Most experts felt housing was on a rebound until today’s figures wipped out most all of the gains made through 2009.  For the full story November new home sales sink 11 percent.

Builders are beginning to embrace zero net building techniques, building homes which produce as much energy as they use.  In the past 5 years net-zero homes have begun to hit the market and for good reason.  These homes offer buyers a reduced cost of ownership over the long term.

One selling point: energy bills that can run more than $2,700 a year are cut to about $700, and total energy savings allow buyers to recoup the purchase premium in roughly 12 years after tax incentives and rebates are included.

A 12 year recoup after tax incentives proves there is still a long way to go to bring these technologies to general public acceptance.  The solar and wind power is offset by new efficient technologies in; natural lighting, high performance windows, energy star appliances, waste water heat recovery systems, thermal storage basements, high efficiency heat pumps, heat recovery ventilation, quality insulation and state of the art mechanical controllers.

See an interactive net-zero home here at wsj.com.

Many families these days share the warmth of their homes with pets which they treat as a part of their family. According to popular surveys, more than half of American homes have pets. These homes provide shelter for a total of about 77.6 million cats and 65 million dogs. Of course, for home owners, owning pets comes with unique challenges.

Protecting Your Home from Pets

When planning to build a home with pets in the scenario, it’s best to choose your building materials wisely. Opting for hardwood, stone tiles, or laminated finish floors would be better than choosing wall-to-wall carpet for obvious reasons. You can go for area rugs if you want to put some texture on the floors of your home. Wall-to-wall carpets are hard and expensive to clean up and they absorb odors which might make your house smell funny after a while. Bare floors will save you the headache of cleaning up the “accidents” your pet may make once in a while. You may opt to put carpeting on the stairs so that your pets would avoid slipping, especially if your stairs are made of smooth wood or marble.

Weigh down your area rugs with furniture so that your pets won’t scatter them around or think that they’re chew toys. To protect your walls from stains, hair and paw prints, you can also opt for matte finish or the non-glossy finish. You can also use window blinds, roman blinds, and the likes as an alternative to heavy drapes which can accumulate dust and pet hairs over time.

If your pets don’t have a habit of climbing furniture, then you can color-coordinate their beds or pillows on the floor to match your furniture’s upholstery. If your pets like to climb on to your sofa to nap, you might want to cover your furniture with washable cloths.

Making Room For Your Pet

Making room for pets in your new home takes some planning. There are ways to make the spaces attractive so that they go along with the architectural theme of the house. In the kitchen, you can create dens or crawling spaces under the cabinets to keep your pets from getting stepped on while you’re cooking. Laundry rooms can be a great place to make a grooming station for your pet. Feeding stations can be built in as pull-out compartments from kitchen cabinets. For people with cats as pets, you can create a more dynamic play area for your cat by making built in ramps and beams in addition to kitty condos.

There are special carpets that are manufactured specifically for pet owners. These carpets have waterproof backing that is meant to keep your pet’s urine from reaching the carpet.

Outdoors, you can also create a separate space for your cats or dogs so that they will do their digging there instead of dig away at your flower beds. It’s also important to know that making space for your pets in your home means that you’ll need to pet proof it as well. Your garden, for instance, should have no plants that are poisonous when eaten. You can consult your landscaping company for recommendations on the types of plants that you can get for your garden. Also take extra care to close and lock cabinet doors that contain toxic materials because your pet may be able to open them. You can also think about investing in invisible fences to keep your pets from getting run over by passing vehicles.

With a little careful planning, your new home can be a haven for your pet too.

Choosing a location for the construction of your new home is a very important step. Your decision to build your home on a specific location will affect your future home life, the kind of changes you can make to your home someday, and its future resale value should you want to sell it. Here are a few things to ask yourself when choosing the location of your new home:

• Would your building plan go along well with the houses in your neighborhood? Take a look at the neighborhood where you want to build your home. Would the value of your home be consistent with the general value of the homes around it? Are there agreements that you need to follow in terms of what color you can paint your house with, or how high your house can be?
• Are there good schools in the district where you plan to build your house? Aside from being good for your own children if you have any, this would also raise the resale value of your house.
• Are there convenience stores, hospitals, restaurants, and other commercial establishments near the location? It is good if these establishments are within a few minutes drive from the location you are eyeing to make sure that buying things and eating out would be more convenient. Should there be an emergency, it is also good to know that there is a nearby hospital you can drive to. It may not be advisable to be choose a place near business establishments either, because this may affect the noise that you will have to put up with at home.
• How is the crime rate in the neighborhood? You would definitely want to live in a good neighborhood where crime rates are kept at a low level. How efficient is the area’s police and firefighting system? Building in a bad neighborhood lowers the resale value of your property.
• What direction should your house be facing in the area you picked? The direction of your house will make energy consumption more efficient in the long run. Before you start building, you need to take into consideration what part of the house faces north because this will contribute a lot to the climate inside your home.
• What kind of taxes are you looking at? Check whether the taxes you’ll need to pay in the area you choose will be something reasonable for you.
• What kind of terrain are you going to build on? Check whether the location you are eyeing is on a flood zone or not. The higher the terrain, the better it is for some people because of the view you get, and better drainage. Checking the kind of foliage inside and in surrounding areas of the property is also a good idea because this will add to the natural beauty of your new home’s environment.

Checking the location of the lot you want to build on is not just checking the address to make sure you’re building on a prime location. There are more things to consider, and these are the things that will make or break your new home. Take the time to sit down and check the suggestions above to make sure that the location of your home is good for you and your family.