Q & A About New Construction in NH

• In New Hampshire, what is the difference between a Spec Home and a Custom Home?
• Why are Ranch Style homes more expensive than colonial style homes?
• What about using "online" plans?
• What if I have my own house plans?
• How long does it take to build a home?
• How do I choose kitchen cabinets, flooring, appliances and such?
• Where can I find land?
• What's an "open space" subdivision?
• What's the role of a Realtor in the process?
• What's new in construction financing?
• What's the deal with transfer tax in New Hampshire?
• Questions to ask your builder?
• What makes some homes of equal square footage price out more than others?
• Where do I go now?

What is the difference between a Spec Home and a Custom Home?

A NH Spec home is a home that a builder constructs and uses as a sample of his work and design.  The home is used to show different qualities of the NH builders portfolio including trim packages, kitchen design and layout, countertop materials, flooring choices, etc.

A NH Custom home is one that is designed and built specifically for a new home buyer. It gives the home buyer the option of complete customization from design and layout, features, amenities, colors; You are involved from the building plans to the mailbox.

Why are Ranch Style homes more expensive than colonial style homes?

We hear this question often. Single floor homes are more costly than two floor styles since the square footage is all on one floor and the foundation and roof are so large; by contrast, a colonial style actually can have the same square footage but the foundation and roof are about one half the size of the single floor home.   Colonials are simply more economical to build. Simple roof lines and square plans can be more cost effective as well.

What about using "online" plans?

We need to caution you about relying on plans you find online; many of these plans quote square footage based upon room sizes and don't include vaulted areas, hallways or stairs. The entire square footage of a home needs to be computed to accurately determine costs.  For instance a home that has a foundation size of 40X30 would be 1200 square feet.   Another consideration with some of these plans is they quote prices based upon areas of the country that might not take into consideration our framing and insulation requirements or the plan may be priced with a slab and our homes most commonly have full foundations.  Also, watch the pricing on some of these plans.  Many homes are designed for southern living and are not designed for colder climates in New Hampshire.

We can use local New Hampshire architects that will customize your plans to fit your needs and that will comply with our local NH building codes.

What if I have my own house plans?

This will vary by builder.  Some NH builders will not allow any changes at all; they will build their home and the buyer will purchase it when completed.  Most builders allow for modifications of their house plan and choices. You will need a custom builder to work with you on your own plans. A custom New Hampshire  builder will meet and help you plan and layout your dream home, provide you with pricing and work with you to build your perfect home.

How long does it take to build a home?

Many variables affect the timing to completion; weather, the size and style of the home, the builder and the building lot are some of the considerations.  Some smaller homes can be completed in as little as 90 days from foundation.  The larger and more complicated builds are more commonly 6 months to completion. Building a home in New Hampshire's winter climate can also lengthen the building process.

How do I choose kitchen cabinets, flooring, appliances and such?

Typically a builder has a variety of vendors you will be directed to so you can make your own choices.  You will be given a dollar allowance.  You make your selections and if you go over the allowance you will owe the difference, usually directly to the vendor.

Where can I find land?

Builders often have land in their portfolio.  Find a good local New Hampshire Realtor specializing in new construction and he/she will be a great resource. 

What's an "open space" subdivision?

Many towns in New Hampshire, in an effort to preserve natural land and resources, have embraced the "open space" concept.  The board will review a proposed NH subdivision plan and allow a specific number of NH homes based upon traditional zoning minimums.

For instance a 200 acre parcel of land can support 30 NH new homes based upon the zoning guidelines of 2 acre minimums (after wetlands,  parcels with slopes over a minimum etc have been removed from the computation);  Rather than spreading 30 homes over the entire 200 acre parcel, the developer might dedicate 100 acres to open space and the remaining lots are clustered so as to minimize the impact on the land, leaving wildlife habitat untouched and preserving the "open space."  The open space is then either donated to the town or kept for the exclusive use of the inhabitants of the new subdivision.

What's the role of a Realtor in the process?

Using a New Hampshire based Realtor that is experienced in the home building process is very important. Ask your NH real estate agent what experience they have; using an inexperienced Realtor may actually hurt you.  A Realtor that is familiar with the process will help make the homebuilding experience one with which you will be pleased.  There are so many details and questions to ask; it is impossible to know if you haven't done this before.

Rene Brin, of Brin Realty Group has been involved in millions of dollars of new construction transactions. She knows the process intimately; she works with the best builders in the area; she can guide and recommend the best builder for you.  Call Rene - you will be glad you did!

What's new in construction financing?

New home financing in New Hampshire has come a long way in recent years.  Today a buyer can choose a new NH home, plan the project with the builder and once plans and prices are agreed upon, the buyer makes application with a lender and it becomes a single project loan. 

1.  The land closing takes place

2.  The house is constructed and progress payments are made to the builder

3.  When the house is complete, the loan converts from a construction loan to a permanent loan with just one set of closing costs. 

This is a great product.  Rene can recommend some of the best programs available in Southern New Hampshire.

What's the deal with transfer tax in New Hampshire?

At time a closing it is typical to pay $15 per $1000 of sales price.  This is equally split between the buyer and the seller.

One of the advantages of a construction loan product is that the New Hampshire transfer tax is paid only on the land at the time of closing, saving the buyers thousands in closing costs.

Questions to ask your builder?

• How long have you been building homes?
• What are the addresses of some properties I can take a look at?
• Can you get me inside a finished home?
• Can I see a home in progress?
• What projects to you have under way?
• How long is your warranty and what does it cover?

What makes some homes of equal square footage price out more than others?

Complicated and multiple roof lines, circle top and or odd shaped windows, exterior veneers such as stone and brick, roof pitch,  custom trim,  tile, custom wood work, custom cabinets, curves in walls or stairs,  high ceilings, upgrades to building materials such as granite, marble, solid surfaces, solid wood flooring  are some of the components that drive up the price of a home.

 What About Green Construction in New Hampshire?

More and more NH builders are embracing green building techniques including geothermal, solar, Energy Star homes and more.  Rene can get you the names of projects under way or planned with some of the best NH builders that are going green. 

Where do I go now?

Finding a builder you can trust and who listens to you, a builder with a great reputation for quality and price - sounds pretty simple and it is if you know the answer. Speak with the experienced New Hampshire Realtor who can direct you to the best builders in the area - .call Rene Brin (603) 672-2004 - she can help.