New Construction: Finding the Lot

Cheryl:                                  Hi, everybody. Cheryl Knowlton, Dynamite Productions back at you with Clay Johnson-

Clay Johnson:                    Hi there.

Cheryl:                                  … talking about a one-time close loan product this week and how fabulous that is to literally find the Lot of your dreams with a view in the neighborhood you want.

Clay Johnson:                    Yes.

Cheryl:                                One-time close.

Clay Johnson:                    Yeah.

Cheryl:                                  So.

Clay Johnson:                    So you need to find that lot. And then usually what people have, they’re wanting to do this, is kind of their blueprints and plans.

Cheryl:                                  Oh, now we have a plan.

Clay Johnson:                    Yes, a plan. What house do you want to build? And that can get … you see husbands and wives have different points of view on this.

Cheryl:                                  Oh, my. That’s a whole nother segment.

Clay Johnson:                    We role play that in some of our CE classes.

Cheryl:                                  Yes we have.

Clay Johnson:                    But you have these different points of view, but once you get past that point and you say, this is what’s important for both of us, we’ve had a little compromise, a little give and take on that, we look at that and that’s what’s presented to the appraiser. To Say, here’s the lot, here’s the home that’s been designed and going to be put on that lot. Now, what’s the value of that?

Cheryl:                                  Yep.

Clay Johnson:                    Here, we know what the cost is, what’s the value? And fortunately, it’s lining up pretty good consistently, where the value is going to be lining up with what those costs are. And then once-

Cheryl:                                  That’s actually very important to the underwriter.

Clay Johnson:                    It is, it is. We need to make sure that value is going to be there for the cost of the property, and the project and all of that coming together. But it’s kind of an exciting time.

Cheryl:                                  It’s a very exciting time.

Clay Johnson:                    It is. People love it. They love kind of planning it out. Be prepared. A lot of times people do go over budget. We do have a 10% contingency fund that’s there to kind of help because always there’s going to be those additional costs, kind of unforeseen or unplanned.

Cheryl:                                  For the gold plated toilets.

Clay Johnson:                    … this is something I need. But we all have those things, those creature comforts, that we like and that are important to us. And once we kind of has all that, we make sure there’s a little bit of contingency for that. And then we kind of pull it all together, which is really exciting.

Cheryl:                                  Absolutely. So what’s next? What do they have to look forward to in our next episode?

Clay Johnson:                    So what we’re going to be talking about next is, now you have that what is going to happen during the process while you’re actually building the home, and then how do you kind of … how does it kind of all wrap-up? What are some of the things that fall into place to make sure it’s wrapped up and completed on time and just the way you want it to? So we’ll catch you on the next video segment.

Cheryl:                                  See you then.

Clay Johnson:                    Bye-bye.