Buy Land and Build a Custom Home-2

Would you like to build your own house? Buy Land and Build a Custom Home.

Today's continuation of yesterday, we will start from the explanation of ​STEP 4 “Look for a Construction Company and Decide”.

STEP4 "Look for a Construction Company and Decide"
Once you have decided on the image of the area or building you want to live in and the approximate budget, the next step is to search for a construction company.
Construction companies include house makers, contractors, and design offices (architects), but the features of each are as follows.

-Home builder (esp. large nationwide company): A sense of security and stable quality that only major companies can offer.
-Construction company: Community-based and easy to respond to detailed requests
-Design office (architect): Unique design based on the wishes of the owner
 
Based on these characteristics, while looking at the residential exhibition hall and the actual construction property, let's thoroughly consider  who will build the house you imagine. If possible, find a construction company and convey the concrete image of "I want to build a house like this" at the same time as searching for the land, so that the house building will proceed smoothly. Because even if you can find the desired land, if there are restrictions under the Building Standards Acts or if the area is designated as an administratively restricted area, even if you can build a building,  you don't know if imagined house will be built or not. By consulting with a construction company in advance and having them look at the land together, it may be possible to select a land with a construction perspective.
Even if you have not decided to build a house with this construction company, you will often be offered consultations such as this. One way is to narrow down the number of construction companies that are attractive to you, look at the land you are interested in, and then make a plan or rough estimate to make a comparative study.
​Other than that, the real estate company may undertake the construction as it is, or the construction company may directly deal with the real estate. In that case, it is not necessary to consider the budget separately for land and building, and there are advantages such as being able to unify them, so you feel it may be a powerful option depending on the plan.

STEP5 "Site Survey and Ground Survey of the Site"
Once the desired land is found and the construction company is decided, we will conduct a site survey and a ground survey to see if a house that is imaged on that land will be built. If you ask a construction company for both, they will investigate for you or arrange an investigation company.
The site survey is to investigate "what kind of house will be built on the land", and the condition of the land, direction, size, shape, height difference, position of the road, grasp of surrounding buildings and trees, It is for understanding electricity, gas, water and sewage, and various legal restrictions. A ground survey is an investigation of whether or not the ground has the properties required for construction, and depending on the results, additional construction such as ground improvement may occur.

Also, regarding the ground, you may be able to judge to some extent yourself at the stage of land search.
・In low land with rivers and ponds in the vicinity, the ground is often soft
・If there are many cracks in the foundation of the surrounding building, the ground may be soft.

The above can be considered, so we think it is a good idea to keep in mind for reference.

From Purchasing Land to Planning a House (approximate period: about 3 to 10 months)

STEP6 "Land Purchase/Contract"
Before you sign a contract, a real estate company will explain to you the "important points" of the land you want to purchase. The Building Lots and Buildings Transaction Business Act stipulates that a real estate company must explain important matters related to the purchased property to prospective buyers before concluding a sales contract. For the explanation of important matters, the real estate broker must verbally explain the written document. Please make sure that there are no explanations different from the information you checked, or if you have any other concerns.
And if there is no problem, the contract is finally concluded. Generally, you pay the deposit at the time of contract. The deposit is about 10% of the land price, but it may vary depending on the contract. In addition, if you cancel after contracting due to the buyer's convenience, the deposit will not be returned in most cases, so be careful. In addition to the deposit, various costs such as "brokerage fee" and "contract stamp fee" may be required at the time of contract.
When purchasing land to build a custom-built house, the rest of the payments other than the deposit may be paid in advance just before the delivery of the land (balance payment). 
There are a variety of payment patterns, such as paying with your own funds, or you can not get a mortgage because the building is not completed, use the "bridging loan" to bridge the gap, or if you can make a loan with the land and the building together. 
Also, at the time of settlement of the remaining balance, you will be required to pay "registration fees" and "the remaining broker's commission paid at the time of contract" separately, so be sure to confirm this in advance.

Tomorrow we will discuss STEP 7: Building Planning and Design.