Building vs Buying

Finally, all your hard work has paid off! You are financially ready for a new home. But now you’ve got to make a big decision - To build or to buy, that is the question. This year, lots of Virginians just like you have been asking that very same question. We’re here to guide you through the building and buying process and how the recession has changed the game, so you know the facts before you make that decision.

It may seem like a risky time to make such a huge investment, but in actuality, there has never been a better time to build. Fixed mortgage and construction loan interest rates are at historic lows and can only go up from here. The recession has created less demand for building lots, which means more choices, so you can find the perfect location to fit your families lifestyle and needs. That also means that prices have reached a plateau and are starting to actually decrease. 


While prices and interest rates are on the decline, innovative technology seems to be growing exponentially. Now is the perfect time to take advantage of improvements in the design and construction of new houses as well as the use of green building materials that contribute to cleaner air, noise reduction and energy-efficiency. That means your home is more comfortable, healthy and you save more money on your utility bills every month.

Pros of Building:

• Maximum choices
• Customize your home to fit your lifestyle
• You can ensure maximum energy-efficiency
• Less maintenance from the get-go

Cons of Building:

• More expensive
• Fewer location choices
• More time before you can enjoy your new home
• Financing can be complicated

Pros of Buying:

• You don’t have to wait
• Easier to finance
• More options for less money
• Flexibility of price

Cons of Buying:

• Settling for other people’s choices
• There could be problems with the foundation, electrical wiring, or pluming that you may not know about before you buy
• Repair and maintenance costs can add up fast

Visit Our How-To Clinic at the Home Expo

The 2010 NRVHBA Home Expo is right around the corner. We're kicking off our how-to classes on Sat. March 13 at 1 p.m. at the Christiansburg Rec. Center! Come by our FREE How-To Clinic at the Home Expo to learn the first thing you should do when you're thinking about a new building project and what things you should look for in a building contractor.

Can't make it to our How-To Clinic at the Home Expo? No worries! We've got two more how-to classes scheduled in March:

How-To Clinic

March 15 & 24, 7-9 p.m.

Blacksburg Motor Company

400 South Main St., Blacksburg

Call 540.961.1125 to RSVP

The real deal on building permits

What is a building permit?
A building permit gives you legal permission to start construction of a building project in accordance with approved plans and drawings. They are required in the state of Virginia to ensure that you meet building standards for your safety and the safety of future property owners and occupants.

When do I need a permit?
The best way to find out if you need a permit is to call your local building code department. Even if you don’t need one for your project, your code official can answer questions and offer advice.

Permits are usually required for:
    •    New buildings
    •    Additions (bedrooms, bathrooms, family rooms)
    •    Small projects (decks, garages, fences)
    •    Renovations (basements, kitchens, roofing)
    •    Electrical and plumbing systems
    •    HVAC systems

Can I get my own permit?
Anyone who tries to talk you into getting your own building permit isn’t doing you any favors. The permit holder becomes the general contractor and assumes all responsibility for the job, including taxes, workers’ comp, and other legal liabilities. Unless you are very experienced in construction, it is always best to leave permits to the professionals.

The contractor should obtain any necessary building permits before construction begins. This should be spelled out in your contract; otherwise, you may be held legally responsible for failure to obtain any required permits. If something goes wrong and you don’t have a permit, drastic steps can be taken such as demolition of all the construction that was done sans permit.

Consider your permit your insurance policy
Almost everyone knows someone who has a horror story to tell about a new construction or remodeling job that went terribly wrong, ending up in wasted time, money and headaches. Your building permit is like an insurance policy that protects your investment and can keep you out of trouble down the road.

How do I find the good guys?

We have dedicated this post to giving you the 411 on what kind of contractor you need, how to verify the license and references, get comprehensive proposals, and seal the deal.

10 tips for making sure that your contractor measures up.

1) Hire only a licensed contractor:

• Check with the Department of Professional & Occupational Regulation (DPOR) to ensure you are hiring a licensed contractor at www.dpor.virginia.gov or (804) 367-8511
• Check with the Better Business Bureau for unanswered complaints.
• Do a credit check. Visit Dunn & Bradstreet.
• Check to see if the builder is a member of the New River Valley Home Builders Association, all of these members are licensed and in good standing.

2) Request current insurance certificates showing proof of coverage and the policy limits for:

• General liability and workman's compensation
• Ask about other types of coverage like key employee insurance, auto and umbrella coverage, and coverage on tools and equipment.

3) Ask to see a sample contract, specifications and warranty. Consider having your attorney review before approving.

4) Ask about regular deposit amounts.

5) Get references from current and past customers, banks, vendors and local building officials.

6) View examples of their work by touring current projects or looking at their portfolio.

7) Evaluate their professionalism.

• Customer service
• Awards, certifications and special recognitions
• Determine your comfort level with key personnel

8) Get three proposals from your short list and look beyond price.

• Are you comparing the same materials and services? 
• Ask about their process and ability to stay on time.
• Remember you get what you pay for, but you NEVER get what you DON'T pay for.

9) You've selected a contractor, now what?

• Get a written contact and don’t sign anything until you completely understand the terms.
• Pay 10% down, or $1,000, whichever is less.
• Get a detailed set of specifications and a pre-set budget.

10) Stay on top of your project:

• Stick to pre-set budgets, don’t pay cash, keep records of your payments and don't make the final payment until satisfied.
• Keep a job file of all paperwork and regularly ask for schedule and punch list updates.
• Do walk-through inspections throughout construction and document everything. Limit and make sure all change orders are in writing and signed by all parties.

10 tips courtesy of DPOR, Blue Ridge Home Improvement and Highlander Construction & Development.