Houston New Construction Home Formula for Owners Success

10:22 Nov 2023
New Construction Home

It is a lifetime dream for many families to build an abode for themselves by initiating a Houston new construction home project.

Houston new construction home projects require the discipline of the owners to carefully evaluate their needs & wants, availability to collaborate during the process and access your resources.

However, not everyone can fulfil this dream of experiencing a Houston new construction home due to reasons such as the requirement of a huge sum for down payment or the ability to fund such a project.

But it is not always the case when it comes to coughing up funds for the project as owners can find ways to do so provided, they see a good return on investment.

And when it comes to the joy of seeing one’s family getting excited about the prospect of a new home construction, the investment can be all the more worthwhile.  

Although you will need a professional builder to expect the best experience results in your new construction home.

It’s not only about money that holds people back from building a house. There are other factors influencing the owners to commit themselves into a new home construction project as well.

These factors drive owners to either put off or minimize the scope of new house construction project not truly appreciating that the ultimate cost of building a house should be seen as an investment in the future.

Let me lay out the insights drawn from my cumulative experience in the field about the factors that influence the decision of any owner to increase the value of his or her more important asset and assure successful results.

New Construction Home

Successful formula for owners executing a Houston new construction home for their family

Conduct a Construction Financial Feasibility Study

Since any Houston new construction home project entails a huge investment, you, as an owner, should have the skills to conduct a market analysis of the same.

This includes preparing a financial feasibility study covering aspects such as evaluating the construction cost, collating relevant sales data of comparable houses and analyzing the projected future value outcomes.

It is only with training and experience that you can understand the implications of a number of financial scenarios surrounding home building .

Making a decision on home construction is primarily underpinned on your ability to gather, prepare and understand the house building process, what is expected of you during the process and the ability to effectively communicate with your house building contractor.

And it is ultimately the confidence that allows you to plan the design and stay diligently focused on executing your home construction project.

By acquiring the knowledge of the financial feasibility insights, an owner can evaluate the viability of initiating the project.

By carrying out the financial feasibility of a construction project, you will get an understanding of the market value of your ‘yet to be developed’ asset and the major cost components of the project.

It will also help you gain confidence in making a decision about a new house construction project. Besides, it will help you select and hire a home builder who can translate your vision and dream into reality.

Further, you can rely on the skills and experience of a Houston house building contractor company to carry out a financial feasibility study.

And should you have doubts about the outcome of the study carried out by a premier builder, you can always take a second opinion from a trusted real estate broker.

You may learn more about this from our comprehensive resource on custom home building.

Choose the Right House Building Contractor

When it comes to building a new house, a majority of owners have distrust for the house building contractors thanks to their ‘not so great’ personal experiences or stories heard of dishonest and poor performing house building contractor.

At the same time, the construction industry is to be squarely blamed for not taking customer service and contract transparency seriously.

The professional service offered by Houston home builders is unique for producing a product before you can actually view and touch it.

Unlike any other industry where you can touch the finished product before buying, the Houston new construction home industry allows you to monitor the entire construction process.

This is similar to watching your new Lexus or Mercedes Benz being built step by step on the assembly line of a car manufacturing facility.

House building contractors are professionals who have the knowledge and expertise to offer the right advice to their clients concerning house construction similar to an attorney or financial adviser.

The relationship between the two stakeholders should be based on mutual trust and respect, and is responsible for planning, executing, monitoring, and delivering the project within time lines and cost.

You may read our blog detailing the things to know before choosing a Houston home builder.

Choosing and hiring a Houston house building contractor from many available is similar to hiring any professional adviser.

It is better to meet and converse with him or her to understand whether your interests are aligned.

Since the building activity can take a long time depending on the scope and scale of the project, you should find out things such as how he or she would handle challenges or be of help during disputes.

It goes without saying that the contractor hired should be of high personal integrity and trustworthy, and have common priorities and business philosophies.

You may read more about the ways to vet a house building contractor.

Houston New Construction Home Project

Collaborate with the House Building Contractor

It is advisable that you hire a premier builder before the design phase begins to avoid any unwanted issues from coming up.

For instance, the design can go over budget even when the bids are presented by 3 different house building contractors.

In such a case, you have to either redesign the whole project or pay the excess amount thereby creating a competitive instead of a collaborative relationship with the house building contractor, which is not desirable by any measure.

Another downside of the conventional bidding approach is that you, as an owner, do not get sufficient time to know the general contractor and develop an amiable relationship.

The approach may be all about discussing the project and plans but not knowing the person.

Since the house building project is all about establishing a working collaboration between the real stakeholders, there should be a better personal equation between them. Read our resource to get more insights into the design build approach.

The conventional competition bid approach hinders developing a collaborative relationship between the owner and the building contractor.

Remember, the lowest bid does not always guarantee quality and cost-effective workmanship. The ultimate cost with such an approach can be between 10 – 20 percent more than the actual bid in the final outcome provided the specifications are neatly defined.

So, choosing the lowest bid and the resultant cost escalations can accrue a total cost that can be greater than the bids submitted by other bidders.

Hence, choosing a building contractor on the basis of a competitive bidding process is not always desirable.

Any home construction project calls for the commitment of time from the owner for activities such as designing the project, selecting the finished products, and taking appropriate decisions whenever needed.

Keep the Construction Cost under Control

A big chunk of the total Houston new construction home cost is earmarked for the materials, labor, and equipment needed for the project.

The budget should be drawn by considering the architectural aspects, finish quality of the construction and the finish product allowances of the project.

The subsequent design should ensure the project meets the preconstruction budget specifications and quality standards.

The initial preconstruction budget for design is known as the concept design budget, which guides the process of design and product selection.

So, as you complete the design phase, the house contractor creates a detailed budget for every phase of the construction process.

The budget will have different estimates for cost buckets such as finished products reflecting your choices.

In case you have selected the products, the contractor will quote the actual product prices in the budget, or else, he or she will keep an additional allowance for the same.

You may view our video the know about the right questions to be asked to your contractor before choosing the building contractor for the project.

The fees to hire premier builders are likely to include the projected profits and off-site operational expenses for the project.

Further, the fees reflect any project-related risks as well and so, you, the owner, should hire the contractor based on his or her aversion to risks.

In the ultimate analysis, if you want to put the risk of cost overruns on the builder, you may want to select a fixed price lump sum agreement.

On the other hand, if you want to share the risk of cost overruns and minimize the house building fee, you can enter into a cost plus contract.


The Houston new construction home process have remained the same for a long time notwithstanding the advent of technology and the availability of several ‘off-the-shelves’ house products.

However, the issues bedeviling the relationship between the house owner and a contractor continue to be the same. These issues frustrate any house owner to fulfill his or her dream of building a house.

I am sure the above-mentioned tips will help you to understand the issues better and allow you to take appropriate actions to achieve your construction goals.

 Additionally, you may read a blog detailing the tips for constructing a new home.

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