about the septic tanks and utility lines that have to be installed).

Land Selection, Deeds, and Construction Loan

One should be as selective of the city in which you want to reside, as well as the type of physical land to purchase. The land should be surveyed, inspected and appraised by licensed professionals. After it passes inspection, you will get a detailed report of soil quality that will then make it safe to purchase it. Don't forget that you will owe taxes on that new land. There is no harm in researching a real estate agent in the city where you are moving to assist you in buying the land. The agent will be able to give you an idea of approximate lot size so you will have an idea about how much house you can truly build. Or, if you'd like, buy the land directly from the city or the company who owns it. Just be sure to do your research on the overall topography of the land. The land needs to be in good condition and must not be prone to flooding, nor have unsuitable soil for construction of a home (i.e. sandy soil or wet soil). Plan wisely and think about what type of weather conditions might cause a delay. Build in a season with the least amount of rain.

Just like every other real estate transaction, land will have a deed. Don't forget to ask what type of deed will be included and if insurance is included. You should also research the local land or neighborhood codes to avoid fines (i.e. is this land in a historic or wildlife protection area where you cannot build? Can the home be purple with black and white stripes?).

Most of us don't have the cash to pay for a new home to be built, so you will need financing in the form of a construction loan. There are two types of construction loans: Construction-to-permanent loan and construction-only loan. The construction-to-permanent loan allows the borrower to only pay interest during the construction and the loan is then converted to a mortgage after the home is built. There is one application and one closing and no upfront fees, which is the biggest advantage. The latter requires separate loans for the construction and mortgage. The borrower applies and pays closing costs on the construction loan, which can last six months to one year. Interest is paid during the construction phase, but the entire principal is due at the end of the term. They must apply again for the mortgage and pay another set of closing costs. The advantage here is that the borrower has time to shop for a good rate and not be locked into a higher interest rate.

Additionally, the land and the construction can be financed into one loan.  Lenders who offer construction loans pay out funds in “draws,” or stages of the construction, and after the job is complete.  Not all mortgage companies offer construction loans so it's best to do your research.

Hire Architect -  Select Architectural Style

Next, it's time to select an architect to generate floor plans in the form of blueprints. You can do this by calling an architectural firm or independent architect. This stage can be tiresome and frustrating due to the fact that some building standards cannot accom-modate what the client wants. It's best to incorporate all of the bells and whistles you desire from the beginning, because it can be costly to make changes after construction begins. A lot of research is involved in building a home. Refer to home magazines or keep a home design book to get ideas. Do you want a 1- or 2-story? Tudor or Colonial? You may also think about buying pre-designed blueprints if you have a certain architectural style in mind and to save the hassle of hiring an architect. Regardless of which selection you make, keep a tight timeline with a completion date in the contract.

 Permits

So, you have the land and the blueprints. Now, you need permission to build. Head down to your local commissions board and get a permit to start construction. A safety inspector will be coming to the site to make sure the construction area is safe. Once the site has passed inspection, a permit will be issued and must be displayed at the construction site at all times during the building process.

Hire General Contractor, Contact BBB, Agreement

Now it is time to find a reputable, professional and reliable general contractor (GC). Some homeowners take on this responsibility themselves and find that it's more than they can handle - especially if they are juggling a family life. GCs can deal with securing the permits if you do not wish to build the home yourself. There are several factors to consider when selecting a GC:

• Price -  should be competitive
• Experience - have they ever built a home from the ground up?
• Policies and expectations - what do they expect from workers and                         clients?
• References - ask for a list or drive by projects that are under construction or recently finished to see their work
• Confidence and leadership - you want someone who can oversee a            construction project and manage workers
• Organization - can they stick to a timeline?
• Flexibility - can they change their plan should things go awry?

Word of mouth is a great way to locate a GC but contacting the Better Business Bureau or the National Home Builders Association will give you an idea about any complaints filed against them. Compare local builders by driving around the neighborhood or look online for builders that specialize in new homes. After you find a GC, you must have an agreement that spells out everything (responsibilities, materials  and fixtures list, line item breakdown if possible, etc.) and be sure to keep the lines of communication open. There may be times when you need to hire a specialized contractor if they are not part of the company you hired to build your house, so take that into consideration when selecting a GC.

Foundation & Framing

It's building time! At this point, the lot is leveled, the foundation is being laid and the house is beginning to be erected via framing. There will be several contractors used during the building of your home including water, sewage, plumbing, electrical and foundation. At this time, using your blueprints as a guide, your basement or crawl space will be outlined, depending on the type of foundation system. Your foundation should be surveyed and inspected as well. There should also be a decision on what type of heating and cooling systems are going to be used - fireplace, furnace, central air, thermostat, etc. Also, think about wiring for ceilings and walls before the drywall goes up. If you want a custom audiovisual system, wireless speakers, specialty kitchen lighting or cable/Internet wiring, it's best to remind your GC of that when the electrician comes.

Interiors (Appliances, Paint, Furniture, Design)

Now the fun part begins! Your details for interior design are limitless. Appliances and flooring need to be selected, furniture and paint have to be chosen. You can shop for your new media room and buy shelving for your library. This is a reward to building your home from the ground up - personalization.

Landscaping

This is often the last detail to be completed after the home is constructed. However, after a matter of days or weeks, the landscaping is complete and your new home is ready for move-in. Attractive landscaping adds curb appeal and gives your home a feeling of friendliness. Take into consideration the climate you live in when deciding what type of plants to select. A trip to the local nursery or a conversation with a landscape specialist will solve that. Landscaping is a great investment, so there's no time to be cheap now!

Building a home is a great endeavor that can be emotionally and financially draining, so it should not be taken lightly. The process can take several months to a year to complete. Building new can be costly if you are relying on your current home to be sold. It's frustrating to juggle two home payments while balancing permits, contractors and any issues that arise (and there will be issues!). After the headaches, financial strain and patience, having a new home built surely can be a gratifying experience and provides some unique advantages over renovation. Building a home to your complete specifications maximizes your personal statement on your new dwelling. In spite of the challenges, it can be a truly satisfying venture!

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Kellye Fox is a Realtor® with Property Consultants Realty. She can be reached via e-mail at kfox@propertyconsultants.com or at

312-492-3234.