12 Steps for Purchasing a Modular Home from The Builder
- Establish your budget. This is a critical 1st step. Finding land and contracting for a new home is a very complex project and it’s important to begin at the beginning. Contact a lender. Get qualified by that lender and establish a budget. By knowing your budget you can set realistic limits in planning your new home. The mortgage specialists at Ulster Savings Bank or another lender can answer all your questions about financing new construction.
- Next, Find land. You need to find a building lot in the area where you want to live. Spend the time to look at some available lots to get a true idea of what you will have to spend for an approved building lot in the area where you want to live. Don’t simply assume that you easily can find a lot at a reasonable price. Subtract the land cost from your total budget to figure your budget for construction. Our real estate division can help you find building lots in Dutchess County.
- Then Select a home and options that fit within your budget. Once you have been qualified by a bank and have found a specific lot, The Builder Development Corp. will quote a price for one of our models, or a plan of your own, customized to meet your needs. We will quote the site work or general contracting based on the requirements of your lot and the site options you select. Every house and every building lot is different. Quoting accurate prices is a time consuming process, so we can’t do a full quote on a project until you have a specific building lot and site plan.
- Order plans. Once we have finalized the floor plan and options, and you have accepted our proposal, the process starts in earnest. First, we order a set of engineered drawings of the house. To order plans we require a $2,000 engineering deposit. This deposit is not refundable, but will be applied to the purchase price of your home.
- Finalize plans. When preliminary plans are received (in about two weeks), we will review them with you and make any final changes before ordering a full set of plans stamped by an architect or engineer. At the same time we request stamped plans for the modular, you must also obtain a stamped foundation plan from a local architect or engineer. We can include this in your contract if you wish. This will cost between $400 and $600.
- Apply for permits. Once the stamped foundation plan and the stamped plans from the factory have been received you are ready for building permits. Usually you will need permits for the house, the driveway, and the septic system. Your general contractor* can handle the permit process for you.
- Apply for your mortgage / construction loan. Your bank will probably require a set of stamped plans as part of the appraisal on your “to be built” home.
- Order the modular home. Once your permits and financing are in place, you are ready to finalize colors and other minor changes and place your order. At this time we will sign contracts specifying the house in detail and spelling out all the work that The Builder Development Corp. is going to do. Make sure the order is complete and accurate. Do not assume that something not specified on the contract, the order form, or the house plans will be included. Once the order has been placed, there is a very limited window where minor changes can be made. There will be a fee for changes made after the order is confirmed, and some changes are not permitted. When the contract is signed, we will require an additional deposit equal to 15% of the modular home price. For example, if the modular price is $100,000, we need $15,000 when the house is ordered.
- Start the site work. The general contractor* needs to begin site preparation so that tree clearing, excavation, foundation, and sill plates are complete prior to the scheduled set date. Within a few days after the order is placed, the factory will confirm the order and schedule manufacture and delivery of your new home. (Usually with 6 to 8 weeks depending on factory backlog.) As soon as we get the projected delivery date, we will schedule the crane and set crew. If we are not your general contractor, you must inform us promptly of any delays to avoid the additional costs and fees you will incur associated with last minute cancellation of delivery.
- Delivery of the modular home. Approximately one week prior to set we will confirm that the site is ready and provide you with a final invoice for the home including the balance due on the order plus or minus charges or credits for any last minute changes. Payment for the modular units is due by certified check when the units are delivered to your job site. The truck drivers will not leave the units without full payment.
- Inspect the modular home. Once the house has been set, we will conduct a “walk-through” with you to verify that the house has arrived in good condition and to identify any service issues. We will arrange for factory service to address any problems identified during the walk-through and any additional items that may be discovered as the remaining work is being completed.
- Completion of the home. A significant amount of work remains to be done after delivery. See our sheet on “Site Work” for details. The cost of site work is not included in the price of the modular home. If The Builder Development Corp. has contracted to be your general contractor*, our general contracting agreement will spell out the details of the work to be done and the payment schedule.
* The Builder Development Corp is a licensed general contractor and can act as your general contractor, you can hire a 3rd party to be your general contractor, or if you have the “know how”, you can act as your own general contractor.