Todd and Nicole's home building story

"A large part of the reason we chose our builder was because he took the time to talk to us and find out what we wanted...a good relationship with the builder is really important during the building process."

Todd and Nicole (not their real names) hadn’t expected to build their own home.  But when they went to see the section that friends had bought, they fell in love with the area and bought a section of their own.  It was something of a leap, as they had no experience of the building process or how long it would take.

Designing their home
The first step for Todd and Nicole was to decide what they wanted.  They looked in magazines, visited show homes and went to open homes to help them.  They took photos of homes or rooms they liked and started a scrapbook to keep track of their ideas.  

At one of the showhomes they visited, Todd and Nicole started talking to the builder.  From that, a relationship developed and they chose the same builder for their house. The builder was also able to refer them to the architect who designed the showhome – they had worked together previously on a number of projects.  

The next step was to meet with the architect.  “Our scrapbook was a useful starting point,” says Nicole.  “We sat down with him and talked through our ideas.  We felt he understood the kind of house we wanted.  He also gave us a list of other houses he had designed that we could look at, so we were very comfortable working with him.

The design process went relatively smoothly – it took about three months from starting work on the plans to signing off on the detailed design.  One tip they have is to get the architect and the builder to go and stand on the section, check out the building site, the position of the sun, the contours of the land etc. before the design starts.

While they were happy with the end result, Nicole says in hindsight there are some things they would change. “The main thing is to be really clear about what you want” she says. “There are always a lot of choices to be made. Listen to the experts but make your own decision. It’s easy to be talked out of things, especially if you haven’t built a house before, but it’s your house and you will be the one living in it. 

Choosing a builder
“A large part of the reason we chose our builder was because he took the time to talk to us and find out what we wanted,” says Todd.  “We built up a pretty good relationship and that gave us confidence.  It turned out to be the right decision because a good relationship with the builder is really important during the building process.  We were able to discuss ideas with him and change things as the building developed.  It also helped that he had a good relationship with the architect.  In fact when we had our first meeting with the architect the builder came along too, and having his input was really helpful. 

“The builder was local, so he knew the area and that was helpful too – he had a relationship with the local council which helped clear up a resource consent issue which might otherwise have caused a major problem.  I think in choosing a builder a good working relationship is probably the most important thing.”

Budgeting
“We worked out how much we would be comfortable borrowing, then designed our house around that” says Todd.  “Of course it’s always a trade off between what you want and what you can afford, so we had to make a lot of decisions during the process.

“Our builder broke down each item which was really helpful as we could check to see if it was realistic.  We could also shuffle things between areas depending on what was important to us – for example we took some money out of the bathroom to pay for some of the things we wanted in the kitchen.  Having that breakdown helped us keep the design within our budget.”

Todd and Nicole chose to buy some of the building components themselves, for example the flooring and bathroom tiles.  While this saved them money, it also meant they were responsible if anything went wrong.  They also saved by paying suppliers and subcontractors directly and simply paying the builder a fee for managing and co-ordinating them.  “Our builder was really helpful in finding ways to get the costs down,” says Nicole, “It’s certainly worth exploring what’s possible with your builder and looking for alternative approaches.”

Finance – structuring their home loan
To get their home loan approved, Todd and Nicole needed a valuation of the finished home.  This was done from the plans.  They got approval for more than they needed – just in case!

The money was drawn down in three stages which aligned with major milestones in the building project – when the foundation pad was completed, when the roof went on, and on completion.   They limited the number of drawdowns to three to save on costs, as an updated valuation is required each time money is drawn down.

“We set up a Flexible Home Loan facility while the house was being built, and it suited us because we were paying the bills as they came in,” says Todd.  “Once it was all drawn down though, we kept a small portion on the Flexible facility just in case, and put the rest on a fixed rate.  It gave us more certainty.”

“In our experience, you need to be very disciplined during the building phase,” says Nicole.  “We set up a spreadsheet showing all the quotes and the actual costs for each component.  It showed exactly how much we had borrowed and where all the money had gone.  We could compare against the estimate and make sure everything was going to plan.  We could also adjust if necessary – if we ran over in one area we could take from another.  It meant that at any time we could get a snapshot of our costs, which would have been impossible otherwise.  It gave us a lot of comfort that we could keep the cost under control.”

Consents
Todd and Nicole’s builder managed the resource consent process on their behalf.  “That worked well for us because he knew the process and also knew the local council people,” says Todd.  “The process went pretty smoothly, but there was one issue – the building site that the council had designated on the section was over a creek!  Our builder was able to go into the council and point out that that was a bit of a problem, and he got it sorted.”

Managing the building process
The key to the building process for Todd and Nicole came down to the good relationship they had already created with their builder.  “That made everything go a lot smoother,” says Nicole. “We did have a couple of issues – for example, the carpet had flaws in it and had to be replaced.  Also, though we specified a particular brand of paint the painters used a different brand.  Our builder was able to act on our behalf and help us resolve any issues.  One bit of advice would be to check all the work, and don’t be scared of being picky.  We weren’t happy with the painting, and didn’t pay the bill until we were.  Our builder helped us sort that out.

From start to finish, the building period was around eight months.  That was a little longer than expected, complicated by weather delays.  There was no fixed end date and no penalties for delays in the contract.  At times there were delays that were a bit frustrating, but communication with the builder helped move things along when necessary.

“We had a bit of to-ing and fro-ing during the building and changed our mind on a couple of things, but that’s to be expected,” says Nicole.  “Once again having a good relationship with the builder made that easier.  I can’t stress the importance of that enough.”

A final word
Having gone through the process once, Todd and Nicole say they would build another house.  “I think it would be easier next time, because we know what to expect, but you still need to be prepared for it,” says Nicole.  “It can be stressful, and you shouldn’t underestimate that.  It’s hard to visualise how everything will look from the plans, so you should be prepared for a few changes along the way.  I think next time I would probably be clearer about what I want, and I’d probably be more confident about standing up if I wasn’t satisfied with something.”

Todd advises home builders to visit the site frequently during the building process.  “That way you can pick up on any issues early and get them resolved.  And since it can be a long process, you should celebrate progress along the way – for example, we had an Easter egg hunt on the building site.  Don’t stand back – I think you need to get involved in the process, learn as much as you can and keep communicating.”