The Pre-sale Process
Over the past several years, approximately 90% of our business has come from pre-sales, homes built for a specific buyer.  Large portions of these sales have come through referral, although the origination of the initial contact is quite varied.  Not all sales negotiations proceed exactly alike.  Throughout the sales process, we try to remain flexible and understand the needs of each particular buyer.  We think that all of our prospective customers should know that we feel responsible for helping them make informed decisions throughout the entire new home process, starting with sales.  Our goal is to create a comfort level where the prospective buyer feels that we are acting in their best interest. 

Preliminary Budget
Often times we create a budget for a prospective buyer even before preliminary plans are available.  Once we've presented our proposal to the buyer, if the budget is acceptable we can proceed with Design Development and Preliminary Plans.  We usually take a $2500 deposit before beginning the design.  The design may be created either in-house or by an outside designer with whom we have a good relationship.  Our objective is to create a floor plan and exterior elevation that can be built within the budget that we proposed.  Full-sized drawings of the floor plan and front of the home will be presented to you for your review.  After the Preliminary Plans are completed to your satisfaction, we confirm the budget and inform you of any cost variances that may have developed during the design process.  If we've done a good job, there shouldn't be any surprises.  

Preliminary Plans
We feel that to negotiate a good sale, we have to be able to quote prices from preliminary plans.  In order for the best value to be obtained, construction pricing needs to be available during the design process.  Seldom does the price of a completed design fall into the expected budget of the buyer, without the help of a builder or professional versed in current costs.  Another reason that we prefer to quote from preliminary plans is that we don’t like bidding against other bidders.  Although we are not opposed to bidding, many times the buyer obtains apples vs. oranges comparisons.  Many of the builders that we compete against in these situations, do not propose the scope or detail that we do.  For these reasons, we have developed a very detailed set of specifications.  Documentation provides the format for developing a strong relationship with our buyers.  We prefer that our buyers are well informed and educated in the home building process.  

Budget Proposal
Our preliminary proposal follows the format of the specifications we will use when we go to contract.  Both the proposal and specifications are worded in “user-friendly” language.  In the proposal, we make many assumptions based on what you may have indicated wanting.  Depending on the level of information available, a price range can be established.  Initially, some of the budgets, like the concrete floor slab, will not vary greatly in price.  Based on the size of the home, it is not very difficult to determine the cost of the slab.  However, other budgets like interior trim and painting can vary widely.  As we spend time with you and find out more about your needs, we can begin to “fine tune” the budget until ultimately establishing an accurate price.  

Eliminate Surprises
Before the next step, we explain that the preliminary price may become the contract price, as long as we stay within the guidelines of the proposal.  During this process, we will educate and communicate with you, and strive to stay within the parameters of the proposal.  This is very important to the relationship at this time.  Surprises and omissions at this early stage can lay a foundation for lack of trust that could continue throughout the entire construction process.  Hopefully, by this point, we will have built a good relationship with you and can proceed with an agreement and construction of your new home.  

Working or Construction Drawings
The next step is to start on the working drawings, the actual documents that we use to build the home, and put together the contract and all of the other paperwork that we will use to administrate the construction of your home.  Prior to beginning the working drawings we usually take another deposit of $7500.  Both of these deposits go toward the cost of your home and will be deducted from the first payment draw that we receive from the Lender.  While the construction drawings are in process, you will need to be finalizing details of your financing.  Typically we first create a "Bank" set of drawings.  This set is usually drawn on a CADD computer system and includes the Floor Plans, a Roof Plan and all four Exterior Elevations.  You will have an opportunity to review the drawings before the final set is completed.  The Lender will use these drawings to perform an Appraisal and we will use the drawings for Roof and Floor Trusses, Energy Calculations, Window Specifications and Architectural Review Approval.  There are additional steps at this stage whereby this information is used to put together a "Building Permit Package" and eventually complete all of the construction drawings.

Financing
Our typical Buyer usually borrows the money for their new home from a conventional bank.  We are already approved and familiar with several lenders in our area.  Construction / Permanent or Construction-Perm financing is most common.  In this arrangement the funds that are borrowed are used for the construction of the home, and when the home is completed the loan is converted into the permanent financing.  There are way too many programs to try to discuss them in this format.  

Closing
After the bank has approved your financing and completed an appraisal from the plans and specifications of the new home, a closing will be arranged.  Closings usually take place at Alliance Title Services in Winter Park.  With construction-permanent financing, the closing takes place before construction starts.  The ownership of the property will be transferred into your name and the balance of the sales price for the home will be disbursed to the builder through draws during construction.  Your down payment will be the amount that you have arranged with your lender less the deposits we have received.

Construction - Pending
Completion - Pending
Warranty - Pending

Please feel free to give me a call is you have any questions about our "typical" sales process.  
Keith Groninger 407.644.8858