8 Ways to Get Cheap Financing for Your New Home

Financing For a New Home – Can we afford it?

Purchasing a new home takes a major commitment; especially when you’re trying to finance the home as cheaply as possible. Banks and lenders seem to be all over the board when it comes to interest rates and amortization periods – making your decision a tough one.

Fortunately, we’ve compiled eight ways to secure cheap financing for your new home. Follow these tips before securing your lender, if you’re hoping to save some money on your mortgage.

1. Make sure your credit score is excellent.

The key to securing low interest financing starts with your credit score; looking at not only your total debt ratio but your employment too. That’s why it’s critical to stay on top of any changes to your credit – reporting them immediately if they’re found incorrectly on your report.

Accidents within your credit report can and do happen – whether that’s a mix up in reporting or a forgotten account that’s gone to collections. Take the time to go through your report and fix any outstanding issues before you try and find a lender.

2. Create a Sizable Down Payment

Banks and lenders like to see commitment from their customers – which starts with the long-term savings goal. Instead of opting for the standard 3.5% down payment, aim to save 20% of your home’s value.

Invest the savings into a high-interest account that remains untouched over a period of time for the maximum return on your investment. It’s important to remember that while saving the money for a down payment might be difficult; showing the lenders you’re committed to purchasing a home is the ultimate goal.

By having the 20% of the value, you’ll not only show the banks your commitment to your debts, you’ll also reduce the overall mortgage costs too. This means you’ll have less mortgage payments, lower interest on the loan and a higher likelihood of securing financing.

4. Consider Long Term Mortgages

Although amortization periods can be as little as 5 years, if you’re willing to extend the repayment period to 30 years – you’ll pay a lower amount of money per month than the shorter time frames. The draw back to extending your term is paying a higher interest rate total on the mortgage amount.

5. Build Loyalty with a Bank or Lending Institution

Having other services with a lending company shows a long-term commitment with the company overall, which many banks like to see at the time of approval. By having other services (like short-term loans, banking accounts, or insurance) with a banking or financial institution, they’ll be able to see your long-term history through the accounts. Short term loans can also give them a bigger picture on your payment history as well – so make sure any payments are current and up-to-date.

6. Look Beyond the Interest Rates

If you’re looking to secure cheap financing it’s important to look past the interest rates of the loan. Many times, it’s not necessarily the interest that will affect your overall payment; it’s the additional fees that can add up quickly. Read through the contracts carefully, looking at underwriting costs, document preparation fees and any other costs within the contract. Compare the total monthly payment (or mortgage amount) with some other lending institutions.

7. Be Honest on Your Loan Applications

It’s important to be open and honest with a lending company – especially if you’re trying to secure a mortgage. Avoid inflating your monthly income, savings accounts, investments or the like – it’ll only cause you problems when it comes time to an approval.

Lending companies like seeing a clear ability to pay down the debt; looking at the total picture of repayment, instead of specific numbers. Lending institutions also like seeing stability with employment, showing a regulated monthly amount coming in every month too.

Make sure that you’re honest about how long you’ve worked for a company, as they’ll pull your information up on the credit report (or through CRA websites). Make sure you’ve been consistently working for the last 24 months to improve your chances of approval – and receiving cheap financing. Fudging your monthly income or inflating the amount of time you’ve been with a company can result in delayed approval, or an automatic rejection.

8. Find a Co-Signer for the Mortgage

If you’re finding it difficult to secure cheap financing, consider asking a friend or family member with amazing credit to co-sign on the application. Many times the additional applicant can help improve the overall credit allowance, giving you a higher approval rate than using a sole income alone.

It’s important to remember, however; the person co-signing on the loan will be responsible for the debt in the event you default or declare bankruptcy. Make sure you have a clear guideline of how much you can afford (even if you’ve been approved for more) to limit the risk of defaulting.

8 Ways to Get Cheap Financing for Your New Home

The Need for Energy Efficient Homes

Flying Cars or No Flying Cars, the Future Needs Energy Efficient Homes

Our planet will be a very different place in the coming years. By 2050, Earth will be home to another 3 billion people, of which 70% will live in cities. Although many things about the future are still ambiguous, it is quite clear that there will be many new buildings where people live and work.

Whether flying cars will still be science fiction or a means to get to work every day, energy efficient homes will certainly be a big part of the future. Or at least they should be. Otherwise, the future may not be something to look forward to. The unprecedented rise in energy consumption will reach even bigger heights, risking the sustainability of everyone on the planet.

Ontario contractors who build energy efficient houses are playing a very important role in decreasing energy use. Many homeowners in Ontario know this from experience, as they hired such home builders to construct a beautiful, energy efficient house.

The Major Source of Energy Consumption in Homes

The growth in household wealth, among other things, have increased the demand for bigger houses, and therefore, for higher energy consumption.

The increased use of consumer electronics in modern homes has further increased energy consumption. From kitchen appliances to entertainment systems, there are numerous items spurring the energy consumed in homes today.

People certainly cannot do without such appliances and machines. What they can do however, is look towards energy efficient construction methods. ICF, short for insulating concrete form, is one such home building method that is an excellent way to do just that.

Perhaps the biggest source of energy consumption comes from temperature control. In Canada for instance, there is no way around a heating system in homes. Ontario contractors who offer ICF construction will tell you how you can conserve energy by using insulating concrete for building your home.

What Inefficient Buildings Do

Consume 40% of the world’s energy. That’s what our inefficient buildings are doing. Moreover, they emit more carbon than vehicles and industrial buildings such as factories. This inefficiency creates all sorts of problems for people and the world they inhabit.

A simple internet search will reveal the many effects of increased energy consumption. From rising global warming to shirking supply of drinking water, there is a lot of trouble brewing as a result of energy wastage.

What Home Owners Can Do

Fortunately, there are ways available that can be used to drastically diminish the energy consumed by buildings over the next four decades. Construction technology and techniques exist today that can cut energy consumption by anywhere between 50% and 80%. That is where the work of Ontario contractors specializing in building energy efficient homes shines most brilliantly.

The Three Beneficiaries of Energy Efficient Homes

The Home Owners

A long list of benefits of energy efficient homes built with ICF is enjoyed by the people living in the house. Benefits include:

• Energy Efficiency


• Strength


• Durability


• Peace & Quiet


• Comfort


• Cleaner Air


• Fire Resistant & Retardant


• Lower Insurance Premium

It makes sense too. There must be a reason why an increasing number of people are turning to energy-efficient construction methods such as using ICF construction.

The Environment

ICF construction offers the best of green construction. Less energy consumption means a better environment. With ICF requiring 40% less energy for heating, it makes for considerable energy saving.

There are many green, energy efficient home construction techniques and methodologies. ICF stands tall among these with the exceptional energy conservation it offers. So when home owners enjoy their energy efficient house, the environment enjoys them too.

The Government

Energy efficient homes are also a great relief for governments, which always seem to be pressed for energy. The huge energy conservation offered by ICF homes translate into a lot of usable energy made available for many development projects that would be otherwise impossible or difficult to undertake.

So in a way, the work Ontario contractors offering ICF construction helps governments oversee a much cleaner, faster developing nation.

Why Home Owners are the Key

The need for energy efficiency cuts across both residential and commercial buildings. Home owners and commercial property owners need to realize the importance of green construction. However, decisions in companies take time, sometimes too much. Even good decisions get delayed due to the number of people involved, ineffective communication, poor management and several other factors.

Home owners face no such problems. So, while companies are coming around and embracing ICF and other energy efficient constructions models, it is the home owners who have to lead the race away from an energy crisis and towards a better, cleaner environment.

No bureaucracy, no unnecessary meetings, no bean counters; home owners are in a much better position to make the right choice. Capable Ontario contractors are always around to help such home owners whether they are first-time home owners or those looking for a new, better house.

The Need for Builders that Specialize in ICF Construction

Almost every homeowner in Ontario wants the wonderful things that ICF homes offers. Those who are able to enjoy these benefits are who work with Ontario contractors that specialize in ICF construction. These companies know the ins and outs of insulating concrete form and have the expertise and experience to build a strong, energy efficient house.

ICF Home.ca, offers prospective homeowners in Ontario the best chance to own a beautiful, strong and unique home built with insulating concrete form. As one of the oldest Ontario contractors specializing in insulated concrete homes, ICFHome.ca offers a comprehensive home construction solution. Whether it is taking on your entire home construction, handling just the ICF portion, or sourcing hard-to-find energy efficient home components, ICF Home lets you choose how you would like to be assisted in building a great energy efficient home.

The Need for Energy Efficient Homes

It's Easy Being Green: Products that Will Save Energy, Water and Money

Easy Being Green

With energy and utility costs expecting to rise in the next few years, investing in environmentally friendly products can help you save energy, water—and perhaps most importantly, money. To help you get started, we’ve compiled a list of products that will help you live green.

Energy Efficient Bathroom Items

As much as 65% of all indoor water use occurs within the bathroom. If you’re not using low-water, energy efficient products, you’ll likely wasting thousands of litres of water every year – which can add up financially over time. That’s why it’s important to optimize your home’s bathrooms with environmentally-friendly products; reducing your impact on the environment and reducing your family’s overall water waste.

Low Flush Toilets

Traditional toilets can use up to 18 litres of water per flush – wasting hundreds of dollars per year. In comparison, low-flush toilets are designed to use six litres of water or less per flush, which can add up to substantial savings over time. In fact, the CHMC conducted a study comparing water-efficient toilets to standard ones in a single-family dwelling; the results reported a 68% decrease in water consumption between the two.

Low Flow Shower Heads and Faucets
The average family of three can take approximately 1,000 showers throughout the year; with the average conventional showerhead using 18 to 27 litres of water per minute—the costs can add up quickly. Consider installing a low-flow unit that typically uses 9 to 11 litres per minute, saving thousands of litres per year.

Most showerheads and faucets are based on an aeration technique by adding air into the water stream. This creates an even, full shower spray despite using less water. Low-flow showerheads and faucets come in a variety of styles and finishes, so you’ll be able to maintain the luxurious feel of any bathroom, without wasting water and money.

Energy Efficient Kitchen Items

Opt for new energy efficient refrigerators and freezers when designing your kitchen; ideally choosing a model with an ENERGY STAR for optimal efficiency. In fact, although an ENERGY STAR fridge costs a little more to purchase initially, they’ve generally paid for themselves within a few years.

When selecting your refrigerator, consider the size of your family and the storage requirements you have. The average household requires a fridge between 16 and 22 cubic feet for optimal storage. Selecting a fridge that’s too small can cause overcrowding – which can become inefficient; likewise, a fridge that’s too big will simply waste energy.

If your family requires a deep freezer, opt for a chest style over the upright models. Chest freezers are typically 25% more energy efficient than upright models which will continue to save you money in the long-run.

Energy Efficient Housing Items

High Efficiency Water Heater

Heating water requires extensive amounts of energy, often times heating the entire tank of water to maintain a temperature repeatedly. While this does, in fact, work well for most homes, opting for a high efficiency water heater can save you energy and money. Look into purchasing a per use water heater, which heats the water at the time of use – instead of consistently warming it (for instance, when you’re sleeping or at work). This way, you’ll only use energy to heat water you’re using at that time – instead of around the clock when you don’t need it.

Likewise, you can also insulate any visible water pipes to help eliminate any heat loss as well. By insulating the pipes, you’ll help keep the temperature consistent and use less energy in the process.

Added Insulation for Extra Warmth
If you’re looking to save some money on your heating bill, consider adding extra insulation (like spray foam) to your home’s structure. But adding spray insulation, you’ll be left with a fuller, thicker coverage – keeping your house warm and toasty in the winter by keeping the cold out. Likewise, you can opt to add additional insulation to the attic and basement of your home as well, which can improve the energy efficiency of your home too.

Properly insulating your home can reduce your year-round energy usage by 20-60%, which can add up to considerable savings over time. Likewise, insulation is one of the most cost effective ways to reducing your heating and cooling expenses over time.

Small Changes Add Up to Big Savings

While it might not seem like a lot of changes, making small improvements to your home’s structure and design can add up to considerable savings over the years. As more people understand the importance of living green, the value for homes with these features and qualities can hold or improve the retail value in the event they decide to resell down the road. Combined with the immediate savings you’ll see at the time of installation, having an energy efficient home is a no-brainer.

It's Easy Being Green: Products that Will Save Energy, Water and Money

Home Automation - Welcome to the New Age of Homeownership

Home Automation – Run Your Home Wirelessly

Home Automation – What’s Next?

While it was something once seen in science fiction movies and futuristic films, home automation (also known as SMART homes) are becoming an increasing trend as technology makes a greater push into society. With an increasing prevalence in modern home building, smart homes are becoming more common – with the ability to monitor and control various electronic devices from virtually anywhere with an internet connection.

Generally speaking, a smart home automation would seamlessly integrate most devices; lights, security cameras, refrigerators, door locks, sound system, televisions and thermostats – with more technology bringing new wireless technologies as each year passes. As more technological items begin to embrace the wireless capacity, more features will become available for integrating throughout the home.

The Benefits of Smart Homes

While there is obviously the benefit of convenience when it comes to smart home technologies, the benefit opportunity doesn’t stop there. Having the automation process of simple tasks set up throughout the home offers home owners the ability to save time. Whether it’s time they’d rather spend with friends or family, time they’d rather spend at the office or other hobbies – saving time on everyday items helps increase the selling proposition.

Smart homes typically also offer a more energy efficient capacity than standard home builds too. With an automated process, the ability to customize various home processes like temperature control, lighting systems, and water saving features can work to save home owners money on their utility bills, while lowering the overall impact on the environment.

The further development of automation also works to add additional security for the ailing and elderly generations as well – by eventually providing access to monitoring the movements of a relative suffering from mental health issues.

Current Smart Home Devices

While the current spectrum of smart home devices continues to climb, it seems that certain devices have become more popular in the last few years, as they work to establish main-stream capacity in new home builds. These devices can range from individual to individual, but generally work to connect in the following industries:

1. Automated Heating Systems

As utility costs continue to climb more home owners are interested in applying the automation products in their homes. These systems can help an individual monitor the internal temperatures of their home – setting the temperature from anywhere in the world, without having to enter the residence.

Nest thermostat claims to learn from you as you use it, which basically means it remembers your input and will eventually start making changes for you. It learns from you and your home, programs itself automatically, and helps save energy when you’re away. And you can control it using your smartphone, tablet, or laptop. 

2. Automated Lock Systems

With more carrying smart phones and devices, automated locking systems are steadily gaining in popularity. Unlike traditional dead bolt systems, the housing locks are controlled with an electronic release through approved devices. This means that you’ll never need a key to gain access to your home, using wireless key fobs or smart phone devices to gain entrance. This can prove helpful in the event you have hired helpers like a maid, nanny or other service provider needing regular access into the home. For those concerned about power outages, most locking systems include two traditional dead bolt keys – which can be used in lieu of electric devices.

3. Security Automation

With wireless technology brings advancement in security, connecting individuals to their homes and properties –even when they’re at work. This means an ability to stay in contact with their home and families, when you need to monitor what’s happening throughout the day. This also means parents will be able to monitor when their children return home, with visual images, two-way talk and text alerts when the door is open. Most security systems also include an integrated system that works to monitor carbon monoxide, abnormal entry and other optional features as well – sending instant alarms if there’s something suspicious.

4. Automated Lighting Systems

Often pictured in science fiction films, automated lights are becoming more common throughout new house builds – having a system arranged on a schedule or timer, or using motion sensors to trip the lights on/off function when in the room.The automated lights are useful for individuals not wanting to return home to an unlit house (especially late at night) or if they’re planning on taking a vacation and want to keep light on throughout the day for pets (or to deter intrusions).

The Future of Smart Homes

In order to optimize and harness the full capacity of smart home automation, manufacturers will have to work to develop technologies based on common open standards that can link into a cohesive system. When looking at households within North America, finding one specific brand throughout all electronic devices is rare, meaning a brand would need to be able to cohesively work with other competing technologies.

It’s a lengthy process to find a collaborative effort that requires complete communication; one that should be able to sync and work interactively with each other throughout the home. While we might not currently be in a totally automated world, as technology continues to expand, it’s not an unreasonable expectation to see continued growth and development in this spectrum of home building.

Engineers and builders in the process of advancing SMART homes anticipate changes in virtually every feature of the home. It starts with the construction of the home: 3D-printing technology has already been used to successfully make a working gun.

If used in construction, this technology known as Contour Crafting, could completely revolutionize the construction industry.

Windows are also getting smart. They are already making windows and walls that can allow adjustable amount of sunlight, fresh air, warmth, and heat in the home.

In the bedroom, self making beds, artificial sunrises customized to the time in which someone wants to wake up, a suggestions from a computer in the closet on outfits to wear based on the weather, activities for the day, and someone’s style.

Bathrooms will eliminate waste on their own. Showers will remember the temperature each individual in the household likes. Heated floors, lit mirrors and heated towels already exist. Some also predict hair styling devices and toothbrushes that work by themselves to get the best clean for its user.

Kitchen advances will include: faster cooking that can boil water in seconds and cook a full chicken in 15 minutes. The kitchen will be able to take an inventory of items it has and record items it needs,  as well as create personalized diets for each individual within the household.

Home Automation - Welcome to the New Age of Homeownership

7 Questions to Ask Your Custom Home Builders in Toronto

Custom-Home-Builders in Toronto

Deciding to hire a custom home builder in Toronto is a major investment of time and energy.

After all, you’re entrusting a company to design, create and build a home specifically tailored to your wants and needs – it shouldn’t be a brash or rushed decision. With hundreds of custom home builders in the GTA, making the final decision can feel overwhelming, but it doesn’t have to be. Consider asking your potential builder the following 7 questions can help you select the right company with confidence.

1. How many years have you been a business?

While this might seem like a basic question, it’s important to dig deeper than the standard “Four years,” response. Although the specific number of years may not be a deal breaker, it’s definitely a positive if the company has been around for a while. A valuable home builder should also feel comfortable providing the details of his company, like how many homes they’ve built, licensing documents and insurance details.

2. Can you provide any references from previous home buyers? Can we arrange a time to see a home you’ve built for another customer?

If the company you’re investigating offers a run around on references or visiting a custom home – take that as a warning sign. Chances are a company that has been around for a while has a compiled list of references you can contact. Follow through with previous customers and ask them about their experiences with the building process and the final result. Take notes for referencing purposes (in the event you’re speaking with multiple companies) and clarify any questions before making a decision.

3. What type of warranty do you provide on your work? Who do I contact if I have a concern?

Although standard wear and tear is expected, if you’re noticing any issues with your home, it’s important to know who to contact – and what the terms of a warranty (if any) include. These terms can vary substantially between companies, so make sure you get everything in writing. Also document any contact details for the builder like email, physical address and phone number – keep them for your records, should you need to discuss details or questions later.

4. How do you compare your workmanship to other builders? What are the benefits of the houses you build

Chances are—a home builder is used to the traditional questions prospective clients ask, so listen to their reaction carefully. Many times, it’s not the actual response given that matters – it’s how they voice it. Watch for any shifting behaviour or long pauses; this might indicate a potential problem. A confident home builder will know why his company excels in specific areas (and lack in others) – but shouldn’t take the opportunity to bad-mouth other companies in the process.

5. Who will manage the construction of my house? Does your company use sub-contractors – if so, are they regularly staffed or hired temporarily?

Having sub-contractors throughout the build is not uncommon – especially when it comes to electrical, plumbing or specific trades that require expertise—but having a short list is important. If your home builder frequently hires sub-contractors temporarily (or through an agency) ask what provisions are in place to ensure quality work is in place. Good custom home builders in Toronto will have a collection of highly qualified professionals (whether subcontractors or staff) that they rely on for the duration of a project.

6. How is the final price of my home determined? How long will my house take to complete?

Both of these questions are largely variable; but a general idea of both should be given. For instance, a home builder in Toronto might not know the total home price until you’ve decided on the features within the home (countertops, cabinets, lighting and any upgrades throughout), but should have a general idea of the price point.

Likewise, the construction of a home can vary depending on the contractors, permit process, and other common issues that can arise during the home building process. While delays sometimes happen, it’s important to have a general idea of completion. Be wary of builders who over-promise; chances are if they’re offering a new home in a time frame that’s much faster than other companies—they might be taking shortcuts on your property.

7. What happens if something goes wrong? How do you handle disruptions or complaints?

Although the most standard response will entail a “see what happens” approach, try to get a better understanding of what the process looks like should you be unhappy during the home building. The final outcome might change depending on the situation (for instance, the wrong design vs. a delay in the completion) but try to get a feeling on how they’d handle complaints.

If the home builder offers a discount or rebate on the home, get it in writing at the time of discussion for your records. No one likes to think of things going wrong, but should it occur during your home build, that documentation will be useful to have.

For over 30 years,  ICFhome.ca has been one of the leading custom home builders in the Greater Toronto Area (GTA). A professional “one-stop-shop”, ICFhome.ca fully managed all home building services from design and planning, to  construction and landscaping of new custom homes.

With innovative architectural design, defined by leading interior designers and carefully crafted by skilled trades, every  home is a singular statement of luxury living forever.

We selectively build a number of fine homes in Toronto to ensure that its high standards are met so that clients can enjoy the home of their dreams. Dreams that are backed by the reality of a comprehensive ICFhome.ca warranty, and reinforced by the Tarion New Home Warranty Program.

If you dream of living in a distinctive and remarkable home, you can trust ICFhome.ca to deliver on time and on budget, the passion, vision and expertise that will transform your dream into reality.

7 Questions to Ask Your Custom Home Builders in Toronto

Top 9 Upgrades That Pay Off at Resale

If you’re purchasing a home from a new home builder, it’s important to consider which, if any, upgrades throughout the home you’d like to have installed.

While it’s important to create the home of your dreams, it’s also important to consider the resale value of you upgrades – in the event you’d like to sell. To help you better understand which upgrades are the best return for retail value; follow these 9 upgrades that pay off at resale.

1. Energy Efficiency

When you’re having a home built, it’s easy to overlook the finer details, which can often start within the walls of your home. Taking the time to ensure your home is energy efficient can not only pay off in the even that you sell the home later on; it can offer substantial savings on your utility bills as well.

With energy costs on the rise, it’s important to consider the potential increase in your utilities – while also considering the overall impact the upgrade will have on the resale of your home.

When having your home designed by a new home builder, you’ll have the option to stick with the basic insulation or purchasing an upgrade to spray foam insulation. The spray foam works by expanding between the joists of your walls – offering a more thorough application than fiberglass. This means your house stays warmer in the cold winter months and cooler in the hot, humid days of summer.

2. Granite Countertops

While it was once considered a sign of luxury, granite countertops are becoming a common feature if custom built homes—with good reason. When you’re deciding on the countertops for the kitchen, many homeowners opt for the cheaper laminate materials, in an attempt to save some money on the purchase price of their home.

By opting for laminate countertops, you might save a few thousand dollars off the initial purchase price (average granite counters sit at $3,500.00) but it’s a decision that may end up costing you more over the long-term.

Over time, laminate can warp, scratch and chip with repeated use – forcing you to replace them when that happens or when you eventually sell your home. Alternatively, granite is made from stone – producing a solid piece of counter space that is much less likely to scratch or chip.

3. Radiant Floor Heating 

Quite a few people have heard of heated floors, especially in the bathrooms – but minimal people realize floor heating is a modern method of heating your entire home. Radiant floor heating works by warming the floor, sending the heat upwards toward the rest of your home – instead of sending the heat out into the air.

While it is a newer method of heating, it’s an energy efficient method that can keep utility costs down. It’s best to install radiant floor heating at the time of home building, making it an innovative product that can increase the value of your home down the road.

4. Whole House Generator

With an increased demand for power, rolling black outs are becoming more common than ever before. Whether this is due to a winter storm or excessive heat wave – sitting in the dark for days can truly take a toll. That’s not to mention the impact it can have on your supplies; food, water, quality of life – with the average blackout ranging between 3-7+ days.

Installing a natural gas generator in the home can help your property run power, even during a city-wide black out. What’s more, opting to install a natural gas generator can improve the value of your home by offering an auxiliary power source.

5. Install an On-Demand Hot Water Heater

Standard water heaters are becoming a thing of the past – especially as more home owners demand energy efficient properties. That’s why installing an on-demand hot water heater is increasing in popularity.

Unlike traditional water heaters, on-demand water heaters offer substantial savings on your water and gas utilities. That’s because it only heats the water on a needed basis. That means you’re not going to have water “heating” at 4am when you’re sound asleep.

6. Upgraded Wiring

The more dependant society becomes the higher impact our devices will have on our electrical systems. That’s why it’s important to have an optimized electrical panel and wiring throughout your new home. By having a higher circuit throughout the house, you’ll be prepared for the increased demand of technology and offer a higher resale value on your home in the future.

Simply adding extra outlets and ceiling fans to certain rooms can make life much more comfortable without costing a fortune.

7. Grass Irrigation System

Landscaping is one of the key areas that can affect your home’s overall value when you decide to sell. Your front lawn is a main focal point for visitors, family, friends and potential home buyers; needing to be cared for throughout the week. Traditional watering methods can flood your lawn or leave burnt “missed” sections – becoming an eye sore over time.

Having an irrigation system installed can help you maintain your property, without having to sacrifice time and energy. Having an irrigation system can help you improve the overall property appearance and increase the value of the home in the event you want to sell.

8. Gas Line to Deck for Barbecue

Anyone who’s ever barbecued understands the frustration when you run out of fuel half way through cooking your hamburgers. Propane can be a costly fuel for a modest outdoor cook; requiring time and money to maintain. While natural gas does cost money to run, it’s often at a fraction of the price of propane.

You’ll never run out of natural gas while you’re cooking, and it’s a major improvement to the outdoor living space. Many potential buyers look for added perks like natural gas lines when buying a home – which can help you increase the overall resale value.

9. Overall Kitchen Upgrades

In a room you use every day, it’s important that the space is functional and practical. Cabinets are expensive to replace later. Installing high-quality cabinets will improve durability and appeal throughout the years – while continuing to help the resale value of your home when you decide to sell.

Look for key features like soft-close doors, high-quality handles and products that hold an overall cosmetic appeal, as well as both deepening and lengthening cabinets to ceiling height for a sleek, custom look and extra storage.

Top 9 Upgrades That Pay Off at Resale

What You Need To Know About Septic Systems Before Purchasing A Building Lot in Ontario

Planning to purchase a lot to build a home in Ontario?

Before you do anything else, check if a public sewer system is available? If not, you will need a septic system to treat and dispose of sewage from the home you plan to build.

What type of septic system you will need, how it will be designed and constructed depends on the particular lot, how much space you have, the characteristics of the surrounding land and the make-up of the soil.

Whatever type, all septic systems require careful attention to design, construction, operation and maintenance.

Septic system typically consists of a septic tank buried in the ground and a drain-field that can fit within the front or back yard of the home-site.

Septic System

Household discharge from the kitchen, bathrooms, and laundry room flow directly into the septic tank where the solids are retained and separated from the liquid. The liquid waste flows out of the tank through a series of pipes to where it is slowly released into the leaching-field where it leaches through the soil and is purified before reaching the groundwater.

The leaching bed is made up of porous materials, such as sand and gravel, and acts as a filter to clean the water before it seeps back into the ground.

septic-tank

Light solids, such as soap suds and fat, float to the top and form a scum layer. This layer remains on top and gradually thickens until you have the tank cleaned.

Unfortunately, not all soils can absorb wastewater or purify it.

Septic systems that are installed in unsuitable soils usually malfunction by leaking raw, untreated sewage to the soil surface or a roadside ditch, or by contaminating the groundwater. The sewage may contain deadly bacteria and viruses.

It can be expensive to remedy the odor problems and potential health hazards that result from the use of septic systems in unsuitable soil.

Because of that, Ontario Building Code requires a comprehensive soil and site assessment  by the local health department to determine the suitability of the soils and topography of the lot.

Setbacks For Septic in Ontario

Reviewing the Lot

If a septic system is needed, walk over the lot and look for indications of soil problems or site limitations that could affect the performance of a septic system.

Consider the following before you purchase a lot:

• Is there enough space on the lot for the home, the septic system, and a water well (if needed)?


• Is the land next to a stream or river that could flood it?


• Does the land seem wet and swampy?


• Is there a bedrock that can interfere with septic system?


• Determine the type of soil on the lot by digging a two 5 foot holes where your field is to be situated


• Find out what type of septic system, if any, will work on those soils.


• Obtain a cost estimate for installing the kind of septic system you need.


• Ask about the operating requirements and maintenance costs for the system.


• Your well and all neighbors’ wells should be 100 feet or further from the septic system.


• There must also be enough land for a “repair area” that can be used if the system needs expansion or repair in the future.

Septic Systems in Ontario

Part 8: “Sewage Systems” of the Ontario Building Code (OBC) regulates design, construction, operation and maintenance of on-site septic systems for most single-family homes. In most areas, the local municipality’s Building Department examines plans, issues permits, and does inspections for systems regulated under the OBC. In some areas, this approval responsibility has been delegated to local Conservation Authorities or Health Units. The Municipal Building Department will be able to redirect inquiries.

Proper approvals under the OBC must be obtained by the homeowner before installing any of the suggestions for improving system performance.

Download: Septic Smart – Understanding Your Home Septic System

Capacity of Septic System

The two main elements that command the size and complexity of a system in Ontario are the maximum amount of waste water that the building could produce on a daily basis, and soil/site conditions.

Case in point; a small 1 bedroom /1 bathroom house would have a maximum daily flow rate of about 750 litres.  If that system was being located in soils with high absorption rate, then the system could be quite small and be installed at a reasonable cost.

On the other hand, if it is a huge 5 bedrooms home with maximum daily flow rate of 2500 Litres and clay soil (which can only absorb 4 liters, per square meter, per day) then the cost could be enormous, because a lot of sand would need to be trucked in.

It is almost impossible to determine how much a septic system is going to cost without visiting the property to assess the available space, access for large equipment, cleanup needs, etc.

Capacity of Septic System in Ontario Explained

Types of Septic Systems

The kinds of soil and site conditions on the land determine whether the local health department can issue a septic permit, as well as the type of septic system needed there.

The conventional septic system, with a septic tank and a number of trenches buried 2 to 3 feet deep, is used at almost one-half of the home-sites with septic systems in Ontario.

It works well in brightly colored (red or brown), thick, loamy-textured soils with deep water tables. This type of system is relatively inexpensive; the average installation cost ranges from $7,500 to $10,000.

On some soils that are too wet or too shallow for a conventional septic system, a modified conventional system or an alternative septic system may be used.

Advanced Treatment Systems – Alternative Septic System

If a conventional system cannot be used, you may wish to determine the installation cost and maintenance costs of the alternative septic system that can be used.

Advantages of alternative systems:

• used on sites not suited for conventional septic systems


• need much smaller septic fields


• have the potential to remove significantly more bacteria and organic material than a conventional septic system


• may extend the life of an existing leaching bed


• take up less room in the yard


• may reduce nutrient output (depending on type)

Disadvantages

• more expensive to purchase and install


• are more expensive to operate than a conventional septic system (electrical costs, media replacement)


• includes more mechanical parts that can break down or need replacement


• requires mandatory maintenance (increases costs)

You may want to consider alternative septic systems when:

• coping with lots with inadequate conditions for conventional systems


• dealing with lots that can’t accommodate the size of a conventional bed


• replacing an old failed septic system


• building on hard to-access lots where transporting materials for conventional systems is costly and/or difficult


• if you want to provide additional nitrate reduction which some of the advanced treatment systems provide

There are many soils that are not suitable for an alternative septic system either.

For these reasons, it is in your best interest to determine the suitability of a lot for a specific kind of septic system before purchasing the lot. If you can use a conventional system, ask about any modifications to the system or to the site that may increase the installation cost.

Also ask whether the approval affects the number of bedrooms that can be built in the home, or the location of the house, driveway, or a swimming pool.

In any case, it is a good idea  to make the purchase of a building lot conditional upon the issuance of a permit for a specific type of septic system.

Download: Advanced Treatment Systems — Alternatives to Conventional Septic Systems

More On Septic Systems Below:

What You Need To Know About Septic Systems Before Purchasing A Building Lot in Ontario

What You Need To Know About Septic Systems Before Purchasing A Building Lot in Ontario

Planning to purchase a lot to build a home in Ontario?

Before you do anything else, check if a public sewer system is available? If not, you will need a septic system to treat and dispose of sewage from the home you plan to build.

What type of septic system you will need, how it will be designed and constructed depends on the particular lot, how much space you have, the characteristics of the surrounding land and the make-up of the soil.

Whatever type, all septic systems require careful attention to design, construction, operation and maintenance.

Septic system typically consists of a septic tank buried in the ground and a drain-field that can fit within the front or back yard of the home-site.

Septic System

Household discharge from the kitchen, bathrooms, and laundry room flow directly into the septic tank where the solids are retained and separated from the liquid. The liquid waste flows out of the tank through a series of pipes to where it is slowly released into the leaching-field where it leaches through the soil and is purified before reaching the groundwater.

The leaching bed is made up of porous materials, such as sand and gravel, and acts as a filter to clean the water before it seeps back into the ground.

septic-tank

Light solids, such as soap suds and fat, float to the top and form a scum layer. This layer remains on top and gradually thickens until you have the tank cleaned.

Unfortunately, not all soils can absorb wastewater or purify it.

Septic systems that are installed in unsuitable soils usually malfunction by leaking raw, untreated sewage to the soil surface or a roadside ditch, or by contaminating the groundwater. The sewage may contain deadly bacteria and viruses.

It can be expensive to remedy the odor problems and potential health hazards that result from the use of septic systems in unsuitable soil.

Because of that, Ontario Building Code requires a comprehensive soil and site assessment  by the local health department to determine the suitability of the soils and topography of the lot.

Setbacks For Septic in Ontario

Reviewing the Lot

If a septic system is needed, walk over the lot and look for indications of soil problems or site limitations that could affect the performance of a septic system.

Consider the following before you purchase a lot:

• Is there enough space on the lot for the home, the septic system, and a water well (if needed)?


• Is the land next to a stream or river that could flood it?


• Does the land seem wet and swampy?


• Is there a bedrock that can interfere with septic system?


• Determine the type of soil on the lot by digging a two 5 foot holes where your field is to be situated


• Find out what type of septic system, if any, will work on those soils.


• Obtain a cost estimate for installing the kind of septic system you need.


• Ask about the operating requirements and maintenance costs for the system.


• Your well and all neighbors’ wells should be 100 feet or further from the septic system.


• There must also be enough land for a “repair area” that can be used if the system needs expansion or repair in the future.

Septic Systems in Ontario

Part 8: “Sewage Systems” of the Ontario Building Code (OBC) regulates design, construction, operation and maintenance of on-site septic systems for most single-family homes. In most areas, the local municipality’s Building Department examines plans, issues permits, and does inspections for systems regulated under the OBC. In some areas, this approval responsibility has been delegated to local Conservation Authorities or Health Units. The Municipal Building Department will be able to redirect inquiries.

Proper approvals under the OBC must be obtained by the homeowner before installing any of the suggestions for improving system performance.

Download: Septic Smart – Understanding Your Home Septic System

Capacity of Septic System

The two main elements that command the size and complexity of a system in Ontario are the maximum amount of waste water that the building could produce on a daily basis, and soil/site conditions.

Case in point; a small 1 bedroom /1 bathroom house would have a maximum daily flow rate of about 750 litres.  If that system was being located in soils with high absorption rate, then the system could be quite small and be installed at a reasonable cost.

On the other hand, if it is a huge 5 bedrooms home with maximum daily flow rate of 2500 Litres and clay soil (which can only absorb 4 liters, per square meter, per day) then the cost could be enormous, because a lot of sand would need to be trucked in.

It is almost impossible to determine how much a septic system is going to cost without visiting the property to assess the available space, access for large equipment, cleanup needs, etc.

Capacity of Septic System in Ontario Explained

Types of Septic Systems

The kinds of soil and site conditions on the land determine whether the local health department can issue a septic permit, as well as the type of septic system needed there.

The conventional septic system, with a septic tank and a number of trenches buried 2 to 3 feet deep, is used at almost one-half of the home-sites with septic systems in Ontario.

It works well in brightly colored (red or brown), thick, loamy-textured soils with deep water tables. This type of system is relatively inexpensive; the average installation cost ranges from $7,500 to $10,000.

On some soils that are too wet or too shallow for a conventional septic system, a modified conventional system or an alternative septic system may be used.

Advanced Treatment Systems – Alternative Septic System

If a conventional system cannot be used, you may wish to determine the installation cost and maintenance costs of the alternative septic system that can be used.

Advantages of alternative systems:

• used on sites not suited for conventional septic systems


• need much smaller septic fields


• have the potential to remove significantly more bacteria and organic material than a conventional septic system


• may extend the life of an existing leaching bed


• take up less room in the yard


• may reduce nutrient output (depending on type)

Disadvantages

• more expensive to purchase and install


• are more expensive to operate than a conventional septic system (electrical costs, media replacement)


• includes more mechanical parts that can break down or need replacement


• requires mandatory maintenance (increases costs)

You may want to consider alternative septic systems when:

• coping with lots with inadequate conditions for conventional systems


• dealing with lots that can’t accommodate the size of a conventional bed


• replacing an old failed septic system


• building on hard to-access lots where transporting materials for conventional systems is costly and/or difficult


• if you want to provide additional nitrate reduction which some of the advanced treatment systems provide

There are many soils that are not suitable for an alternative septic system either.

For these reasons, it is in your best interest to determine the suitability of a lot for a specific kind of septic system before purchasing the lot. If you can use a conventional system, ask about any modifications to the system or to the site that may increase the installation cost.

Also ask whether the approval affects the number of bedrooms that can be built in the home, or the location of the house, driveway, or a swimming pool.

In any case, it is a good idea  to make the purchase of a building lot conditional upon the issuance of a permit for a specific type of septic system.

Download: Advanced Treatment Systems — Alternatives to Conventional Septic Systems

More On Septic Systems Below:

What You Need To Know About Septic Systems Before Purchasing A Building Lot in Ontario

An open letter to every homeowner who has been ripped off by a home builder

The builder who offers the biggest house for the lowest cost has most likely compromised quality at every step of the construction process.

The problems manifest later. Faulty foundations, moisture intrusion, and shoddy framing are often at the root of problems, which show themselves as gaping cracks, rotting walls, and windows and doors that don’t close right. Often, though, they show up months or even years after the buyer has moved in and the builder has moved on.

A builder can use their experience and expertise to work for you or against you!

You, indirectly, get to choose only one or the other. A very good builder can only produce very good projects. It goes against his grain to use low bids from subcontractors or suppliers. His bid will feel high.

A bad builder, on the other hand, doesn’t have the ability to produce a good job. He just doesn’t know how. He uses the lowest priced subcontractors and suppliers because he doesn’t know the difference between GOOD and BAD work. He never will. His goal is the low bid. And your search for a “bargain,” so engrained in us as Canadians (it’s like winning!), makes you his target prey.

With over 50 materials suppliers and subcontractors involved in any given project, and at least 10 of each to select from locally, a builder has 500 subcontractors and vendors to choose from. He can select either the ones that can do the best job on time, or the lowest bids that will get it done sometime.

Believe me, marriages have gone on the rocks due to subs who do not show up, do not show up on time, do not do the work correctly and according to specs, and then do not stand behind their work. So if you are looking for the lowest bid there is no magic to producing one.

There is, however, a lot of magic if a low bid project is pulled off without a lot of delays and cost overruns. In home building, you truly do get exactly what you pay for.

It cannot be repeated too often: When the builder has nothing to lose, the homeowner stands to lose everything.

When you finally get a builder and you enter into a contract, you should treat your association like a partnership. Your builder shouldn’t try to shortchange you, and you shouldn’t shortchange him. The first one who tries to nail the other will provoke the other to do the same. Then you have an adversarial relationship you didn’t want or expect, and from there on things go downhill very quickly.

A good builder always wants to make a good first impression.

The up front attention the builder gives you prior to signing the contract is the best and most you will ever get from him. If he makes you wait and wait for the design and estimate, then just imagine how well he runs the ensuing construction process.

Don’t wait for bids from some time-warped builder who can’t get out of bed in the morning. building is a careful, complex job that requires constant communication and a mountain of attention to detail. builders who make clients wait are always, always, always late.

If a builder won’t give you good up front service, it’s merely an preview of the way he works and will work on your job. Call someone else.

Remember: You are buying the process, not the project

Nearly everybody treats the contracting for a building project as if it’s already built! It isn’t, and it won’t be for a very longtime. It’s that l-o-n-g-s-p-a-c-e  between the signing of the contract and the completed projected that you really bought.

If you can think of your builder as if they were a travel agent, then the PROCESS ahead of you is like the taking of the trip. If you book a trip from the Toronto to Calgary, wouldn’t you like to know if you will be traveling by bus, truck, pack mule or airplane?

Most travelers know the difference. But in home building our brains turn to jello. We end up with bad trips and feel every bump, dip, delay and stoppage. Minds feel like lost baggage. We’re not sure when, how, or if the trip will get us safely to our destination.

Again, the part of the building project that you really bought is the process (trip). It should be a foregone conclusion that you’re going to get a good job done eventually.

Who is taking out the building permit?

Just when every precaution has been taken, along comes a homeowner who’s gullible enough to take out the building permit for the builder.

Now the homeowner is responsible for the entire project – all the inspections, all insurances and future problems or warranties. The builder has no liabilities and has deftly shifted all of them to the homeowner!

It’s o.k if the homeowner or his subcontractors build a majority of the house, but if builder is building the whole house, do not take out the permit.

Banks don’t protect your interests while you are building

Everyone thinks they’re so smart because they bought an expensive home without a hitch. Never mind that the lawyers actually did all the legal work, and if anything gets missed, the title insurance saves the day… and the home. This gives the homeowner a false sense of security when building. They think others are watching out for them.

Nobody is watching! If you lose $50,000 on a building project gone bad, you STILL owe the bank for the next 15 years. The Bank loaned you 80% of your equity in your house, so they’re NICELY covered. They can easily get their money out of you even without the improvement.

There are few branches in Ontario who deal exclusively with reputable builders. When a homeowner comes to one of these more selective banks for building financing, but their builder isn’t on the bank’s A-list, the loan is turned down without explanation.

The homeowner thinks they weren’t approved, when actually it was the builder who wasn’t approved. Banks are in the business of renting money. They are not in the business of providing information on the ever-changing circle of home builders.

What to do when the builder won’t honour his price after starting your project

This is a serious problem, a recurring one, and NEVER easy to deal with. Sometimes the builder has made an honest mistake, but sometimes it’s a calculated mistake. Either way, he wants more money or he won’t proceed any further.

You have a signed contract which will hold up in court (after you have paid an attorney thousands of extra dollars). You also have a home that’s in shambles for the duration. What to do? If you do pay the extra, how do you know it won’t happen again? And again? You really don’t know the true price of your project until it’s completed and all of your lien waivers are in hand.

However, you now understand why this builder’s bid was lower then the others. Many builders regard the bid as a starting point of what it takes to get a signed contract and a down payment. The real profits come in the future, through the add-ons and change orders.

What role should a lawyer play?

It depends on if you are on the offense or the defense. Either way it will cost you a lot to gain a little. Unfortunately, people usually hire an attorney AFTER they have been nailed. But being in the right and winning a lawsuit doesn’t do much good if the builder you’re suing is flat broke and owes everyone in town.

Should you hire an architect  to oversee your building project ?

This gets back to an earlier warning: “Don’t consider an architect that hasn’t designed at least fifty projects that actually got built”. Why pay for someone else’s learning curve? But once you get through the laborious task of having plans drawn your real work has just begun.

Your architect will send off the five-pound set of plans (that you paid $10,000 for) to various building contractors to bid on. Typically the plans will be sent to half a dozen builders. Some will be sent to the builders that the homeowner selected, and for insurance the architect will send some sets to contractors he has worked with in the past.

Most builders selected by the homeowner won’t respond because the architect has officially signed off responsibility for the total outcome of the project and the architect does not have Errors and Omissions Insurance. The contractors selected by the architect WILL respond because they have a cozy relationship with the architect. The architect examines the bids (for an extra fee) and advises the client on what to do.

The “what to do” part is where the homeowner now gets let in on a new idea. The architect is privy to the builder’s price ranges and if they are high enough the new idea is (news flash) that the architect will offer to build the job for the client and the client will not have to pay his fifteen percent fee for overseeing the project.

An architect does have limitations: his primary training is not in project management and his plans still should be checked and re-specified by a structural engineer so the project doesn’t drift in the wind. Homeowners get nailed by architects, too – it’s just that it’s not as often but it’s usually for much more money.

 

An open letter to every homeowner who has been ripped off by a home builder

An open letter to every homeowner who has been ripped off by a home builder

The builder who offers the biggest house for the lowest cost has most likely compromised quality at every step of the construction process.

The problems manifest later. Faulty foundations, moisture intrusion, and shoddy framing are often at the root of problems, which show themselves as gaping cracks, rotting walls, and windows and doors that don’t close right. Often, though, they show up months or even years after the buyer has moved in and the builder has moved on.

A builder can use their experience and expertise to work for you or against you!

You, indirectly, get to choose only one or the other. A very good builder can only produce very good projects. It goes against his grain to use low bids from subcontractors or suppliers. His bid will feel high.

A bad builder, on the other hand, doesn’t have the ability to produce a good job. He just doesn’t know how. He uses the lowest priced subcontractors and suppliers because he doesn’t know the difference between GOOD and BAD work. He never will. His goal is the low bid. And your search for a “bargain,” so engrained in us as Canadians (it’s like winning!), makes you his target prey.

With over 50 materials suppliers and subcontractors involved in any given project, and at least 10 of each to select from locally, a builder has 500 subcontractors and vendors to choose from. He can select either the ones that can do the best job on time, or the lowest bids that will get it done sometime.

Believe me, marriages have gone on the rocks due to subs who do not show up, do not show up on time, do not do the work correctly and according to specs, and then do not stand behind their work. So if you are looking for the lowest bid there is no magic to producing one.

There is, however, a lot of magic if a low bid project is pulled off without a lot of delays and cost overruns. In home building, you truly do get exactly what you pay for.

It cannot be repeated too often: When the builder has nothing to lose, the homeowner stands to lose everything.

When you finally get a builder and you enter into a contract, you should treat your association like a partnership. Your builder shouldn’t try to shortchange you, and you shouldn’t shortchange him. The first one who tries to nail the other will provoke the other to do the same. Then you have an adversarial relationship you didn’t want or expect, and from there on things go downhill very quickly.

A good builder always wants to make a good first impression.

The up front attention the builder gives you prior to signing the contract is the best and most you will ever get from him. If he makes you wait and wait for the design and estimate, then just imagine how well he runs the ensuing construction process.

Don’t wait for bids from some time-warped builder who can’t get out of bed in the morning. building is a careful, complex job that requires constant communication and a mountain of attention to detail. builders who make clients wait are always, always, always late.

If a builder won’t give you good up front service, it’s merely an preview of the way he works and will work on your job. Call someone else.

Remember: You are buying the process, not the project

Nearly everybody treats the contracting for a building project as if it’s already built! It isn’t, and it won’t be for a very longtime. It’s that l-o-n-g-s-p-a-c-e  between the signing of the contract and the completed projected that you really bought.

If you can think of your builder as if they were a travel agent, then the PROCESS ahead of you is like the taking of the trip. If you book a trip from the Toronto to Calgary, wouldn’t you like to know if you will be traveling by bus, truck, pack mule or airplane?

Most travelers know the difference. But in home building our brains turn to jello. We end up with bad trips and feel every bump, dip, delay and stoppage. Minds feel like lost baggage. We’re not sure when, how, or if the trip will get us safely to our destination.

Again, the part of the building project that you really bought is the process (trip). It should be a foregone conclusion that you’re going to get a good job done eventually.

Who is taking out the building permit?

Just when every precaution has been taken, along comes a homeowner who’s gullible enough to take out the building permit for the builder.

Now the homeowner is responsible for the entire project – all the inspections, all insurances and future problems or warranties. The builder has no liabilities and has deftly shifted all of them to the homeowner!

It’s o.k if the homeowner or his subcontractors build a majority of the house, but if builder is building the whole house, do not take out the permit.

Banks don’t protect your interests while you are building

Everyone thinks they’re so smart because they bought an expensive home without a hitch. Never mind that the lawyers actually did all the legal work, and if anything gets missed, the title insurance saves the day… and the home. This gives the homeowner a false sense of security when building. They think others are watching out for them.

Nobody is watching! If you lose $50,000 on a building project gone bad, you STILL owe the bank for the next 15 years. The Bank loaned you 80% of your equity in your house, so they’re NICELY covered. They can easily get their money out of you even without the improvement.

There are few branches in Ontario who deal exclusively with reputable builders. When a homeowner comes to one of these more selective banks for building financing, but their builder isn’t on the bank’s A-list, the loan is turned down without explanation.

The homeowner thinks they weren’t approved, when actually it was the builder who wasn’t approved. Banks are in the business of renting money. They are not in the business of providing information on the ever-changing circle of home builders.

What to do when the builder won’t honour his price after starting your project

This is a serious problem, a recurring one, and NEVER easy to deal with. Sometimes the builder has made an honest mistake, but sometimes it’s a calculated mistake. Either way, he wants more money or he won’t proceed any further.

You have a signed contract which will hold up in court (after you have paid an attorney thousands of extra dollars). You also have a home that’s in shambles for the duration. What to do? If you do pay the extra, how do you know it won’t happen again? And again? You really don’t know the true price of your project until it’s completed and all of your lien waivers are in hand.

However, you now understand why this builder’s bid was lower then the others. Many builders regard the bid as a starting point of what it takes to get a signed contract and a down payment. The real profits come in the future, through the add-ons and change orders.

What role should a lawyer play?

It depends on if you are on the offense or the defense. Either way it will cost you a lot to gain a little. Unfortunately, people usually hire an attorney AFTER they have been nailed. But being in the right and winning a lawsuit doesn’t do much good if the builder you’re suing is flat broke and owes everyone in town.

Should you hire an architect  to oversee your building project ?

This gets back to an earlier warning: “Don’t consider an architect that hasn’t designed at least fifty projects that actually got built”. Why pay for someone else’s learning curve? But once you get through the laborious task of having plans drawn your real work has just begun.

Your architect will send off the five-pound set of plans (that you paid $10,000 for) to various building contractors to bid on. Typically the plans will be sent to half a dozen builders. Some will be sent to the builders that the homeowner selected, and for insurance the architect will send some sets to contractors he has worked with in the past.

Most builders selected by the homeowner won’t respond because the architect has officially signed off responsibility for the total outcome of the project and the architect does not have Errors and Omissions Insurance. The contractors selected by the architect WILL respond because they have a cozy relationship with the architect. The architect examines the bids (for an extra fee) and advises the client on what to do.

The “what to do” part is where the homeowner now gets let in on a new idea. The architect is privy to the builder’s price ranges and if they are high enough the new idea is (news flash) that the architect will offer to build the job for the client and the client will not have to pay his fifteen percent fee for overseeing the project.

An architect does have limitations: his primary training is not in project management and his plans still should be checked and re-specified by a structural engineer so the project doesn’t drift in the wind. Homeowners get nailed by architects, too – it’s just that it’s not as often but it’s usually for much more money.

 

An open letter to every homeowner who has been ripped off by a home builder