BUILDING VS. BUYING - BLOG SERIES
Since so many of our readers ask us about this topic, we decided to write a blog series!
Step #1 - Buying a Good Lot!
Step #2 - Getting Your Permits
Step #3 - Contractors & Financing
Step #4 - Let the Building Begin!
Step #5 - Permanent Financing and Moving into your Dream Home!
GETTING YOUR PERMITS
Okay, so you closed on your vacant lot and you are super excited, now what?!
If you're ready to keep moving forward, now it's time to get your permits. Be forewarned, the process might just test your patience!
The list below is what are sometimes called your "SOFT COSTS".
Soft Costs are the costs you will incur from after you purchase your vacant land until you have your permits. Soft Costs are all of your costs to obtain your "entitlements" before you start any actual grading or construction work.
Most likely the lot you will purchase will be within a designated "hillside area" so you will need the following:
AND THERE IS MORE but the above list gets to the majority of what you will have to go through.
Depending on whether or not you will need a variance, and whether or not you will need a "B PERMIT" and how expensive your architect is, you might be looking at about $100k for all of the above.
LADBS PLAN CHECK
With all of the above listed steps, reports and plans, you will be ready to submit your package into LADBS PLAN CHECK. Once in plan check, depending on how complete your plans are and how many corrections your assigned City of Los Angeles "plan checker" has to make, the entire process from submission to having your permits "READY TO ISSUE" or "RTI" it could be from 3 months (very unlikely) to up to 18 months. Most of the time you should be able to get everything done (if you are diligent with pressing forward) and be RTI within a year.
NOTE: I recommend that you take your time with your architectural plans to make sure that you have a floor plan that you will love. It's just as expensive to build a home that has an awful floor plan that you will be disappointed with as it is to build a home with a floor plan that makes you smile for years to come.
If you are not so adept at visualizing a 2-dimensional blueprint, you might consider hiring a contractor that can model your home and let you view the interior of your home with realistic graphics. This is a great way to be able to understand how it might feel to be in your home after it is built. Don't be afraid to make any changes that you think will improve your home.
This is your dream home! A 3D model of your home might be a great investment to make sure that when your home is completed, it is all that you had imagined it would be.
Getting through the above will not be easy and there are sure to be challenges along the way but once your plans are RTI you will be able to get your construction loan and you will ready for the construction to begin!
STAY TUNED FOR
STEP #3 CONTRACTORS & FINANCING!
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The Fitzburgh Realty Team