Planning Guide > Getting Started

Know Your Limits
The New Construction Project

Thinking of building a new home, or remodeling an existing one? How close you can come to your dream bath or kitchen, will depend in a large part, on the type of your construction project.

This article discusses the different limitations between a tract house, semi-custom, custom, and a spec home. We'll also take a look at the various types of remodeling projects.

• Production Home (tract subdivision)
  
• Semi Custom Home
  
• Custom Home
  
• "Spec" Home
  

Production Home
A production or tract home is one of a group of homes that are similar in size and style within a planned subdivision. Typically, tract subdivisions are developed entirely by one builder, and the same floor plan (or similar) will be used for each type of house offered.

The style and grade of cabinets, fixtures, plumbing, heating system, carpeting, paint, etc., of the subdivision home are pre-determined using stock items. The cost of these items is included in the base price of the house.

With very few exceptions, you will not be able to change the floor plan, resize or reposition cabinets, fixtures or appliances in a production (tract) home.

Generally, you will be allowed to upgrade certain items. An upgrade is simply a more expensive, stock item from the same manufacturer. Some standard builders offer more than one manufacturer, but usually not.

Upgraded items are generally displayed in the builder's model home. Depending on the builder, these may include flooring, countertops, kitchen cabinets, appliances, sinks, faucets and other fixtures.

Most production builders offer a limited selection (brand, model and style) of stock upgrades. These limits are determined by the neighborhood, base price of the house, size of the original item (it has to fit in the space allocated), and product availability from designated suppliers.

The cost of the upgrade is the difference between the cost of the original item and the new one, and will be added to the purchase price of the house.

When touring the model home, make sure you ask which items displayed are upgrades and which are standard (included in the base price).

Typically, upgraded items are chosen at the builder's location, and not in a kitchen and bath showroom.

If you have your heart set on a particular item not offered by the builder, don't run out and buy it, thinking the builder will do the installation. It may not fit in the space allocated, or the builder or sub-contractor may refuse to be assume responsibility if something goes wrong. Make sure you discuss it with your builder beforehand.

Semi-Custom Construction
The semi-custom house starts with a standard floor plan, but you have the ability to modify the plan (within reason) to fit your needs.

Any plumbing, ventilation and electrical modifications must be decided before the final plans are drawn.

All structural changes will be incorporated into the final blueprints for the house. (note: there may be additional charges to have new blueprints made. Ask your builder about this.)

The builder will establish an allowance for each room or category, such as lighting or carpeting. The total amount of the allowances will be determined by the neighborhood, size of the house, and price of the house based on the final blueprints.

If this is the first time you have had a home built, or are unfamiliar with the cost of cabinets, appliances, faucets and fixtures, these allowances can sound quite high.

Keep in mind, the total allowance is the amount the builder would have spent had he or she selected the items, and is included in the quoted price for the house.

If you exceed the maximum amount of your allowance, the extra charges will be added to the purchase price. Rarely will you spend less than the designated allowance.

The builder may offer a selection of stock and premium cabinets and fixtures, or he may have you visit designated suppliers, such as Keidel Bath & Plumbing or Keidel Cabinetry and Appliances, to make your selections. The showroom personnel will help you select items within your budget, and help keep track of your spending versus the allowance.

Generally, you a free to select items up to the amount of the designated allowance.

Custom Construction
A custom home is one that is designed by an architect, just for you. Neither size or price determines whether a home is custom. The term custom applies whenever the home has an original and unique design.

Think about what you want in the kitchen, bathrooms, laundry room, etc. before the plans are drawn. (see What Your Architect Needs to Know) All structural requirements, including plumbing, heating, ventilation and electrical, must be decided before the final plans are drawn.

The final blueprints are submitted to the local building department for approval and inspection. Remember, any structural changes you make after the blueprints and specifications are completed, require a redrawing and resubmission of the plans ... resulting in additional expense and possible construction delays.

Avoid making changes after the plans and specifications are completed. A seemingly insignificant modification can cost a significant amount of money and time. Small changes can ricochet through the home, and may create major construction problems later on.

In a custom home, you are limited only by floor plan and budget. Be realistic about your budget and stick to it.

When it comes time to select flooring, lighting, cabinets, appliances, fixtures, etc., you will visit the showrooms of the individual dealers the builder has an account with.

To stay within your budget, have your builder help you establish allowances for each room and category. Make sure the showroom personnel know what your budget or allowance is for that area. This way, you are less likely to get carried away with one area or room

Spec Home
A spec home is one that is built on speculation by the builder. This simply means, the home has not been built for a specific buyer.

Most often, the spec home is the builder's model. Sometimes, the builder hopes to sell the spec home during construction or shortly after construction is completed. A spec home can be a custom home, a semi-custom home or a tract home.

If you buy a spec home during construction, you will probably will be able to request some degree of customization, depending on the stage of construction. (see Semi-Custom above)

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