ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, March 21, 1993                   TAG: 9303190506
SECTION: TODAYS HOME                    PAGE: TH-12   EDITION: METRO 
SOURCE: By SARAH COX
DATELINE:                                 LENGTH: Long


YOU CAN BUILD A HOME - AND SURVIVE IT

So you want to build a house. Joe Miller, a general contractor in his family's business, E.J. Miller Construction Company, Inc., said that most people have negative feelings about building a house, but when they go through the process, "they kind of enjoy it. There is a perception that building a house is the most difficult thing you'll ever do in your life," he said.

"Building a house, to me, is like buying a car. You can spend a lot of money on a house, and not have anything worth the money." But, he said, there are several very important factors that are important not to skimp on: good windows, good insulation, and brick, since brick is energy efficient and durable. But back to the beginning . . . before the brick and the windows and the builder.

Most people assume that land comes before plans or builders. But there are spec builders in the Roanoke Valley who own land, own plans, and can sell homes that are at varying stages of completion -from before the first nail is hammered to after the carpet is laid.

David Vaughn of Dominion Builders, who builds both spec and custom homes, said a good place to start is by establishing a price range, and then establish your needs in a home design: for instance, the number of bedrooms, and whether you need office space. Secondly, he said, you need to decide on a style - whether you want contemporary or traditional.

"Most builders have plans," Vaughn said. He said changes in plans is a factor built into the bids. A homeowner can also send away for plans through magazines, or have a home custom designed, either with the help of a contractor, or on his own through an architect or draftsman.

Once a lot is decided upon, and the kind of home has been narrowed down, searching for a general contractor comes next.

Vaughn suggested starting with the Roanoke Regional Homebuilders Association. They have a list of member contractors, as well as written information about warranties, service and how to choose a builder.

The contractor, according to Miller, should run the entire job for you - "the client should not have to deal with subs or suppliers. They ought to use the general contractor as a buffer for them."

Vaughn said contractors should have a state Class A license, general liability and workman's compensation insurance. In addition, they should readily supply a list of references.

Another thing to be cautious of, said Vaughn, is the Mechanics Lien laws. In essence, if your contractor is not paying your subcontractors from the periodic payments you make him, and then he declares bankruptcy, Vaughn said the homeowner is responsible to the subcontractors, and must pay them before moving into the home.

You can have the contractor sign a release form during different stages of house completion, he said.

"I've known people who've built a $200,000 home and then had to turn around and pay another $100,000 before they move into home," he said.

Another way to assure that you choose the right builder is what you do with the list of references he's supplied.

Since a general contractor, according to Miller, is in charge of the entire project in most cases, from clearing the lot all the way through to handing the owners the keys to the front door, you want to make sure you've got the right one. One way to do that is to check the references. Call homeowners who have employed the contractor in the past.

The relationship between a builder and a homeowner lasts longer than the time it takes to build a home. Guarantees can last up to two years beyond completion.

"I've seen marriages that don't last as long as some of my relationships," said Vaughn. "Homeowners must be able to talk to builders and feel that the channel is open both ways. You've got to be able to work out mistakes without arguing about them." Since changes are commonplace during the building process, Vaughn said a builder with experience and responsibility will avoid the pitfalls easier.

Another check a prospective homeowner can make is to look at other homes builders have constructed. See what's being built in this area and what's selling.

As Vaughn said, "Most people have to keep in mind that you have to do certain things to a home to resell it," such as planning a master suite on the first floor, a three-car garage and a more versatile and larger kitchen. "It really pays to ask around in the marketplace before starting to build a home. If you do your homework and work with the right builder, the day you move in, you will have equity in that home."

Once the field has been narrowed to several builders, put the process out for bid.

E.C. Chick Pace, who is having a home built in the South Roanoke area, said he did just that. After he decided which piece of property to built on, and after he settled on plans, he narrowed his potential contractors down to three.

He did that by checking references, talking to contractors about his house and getting feedback about plans. Because of the lay of his land, the positioning of his home was an important factor in its architecture and building. "Any of the three builders could have built this house for me," he said. At that point, the lowest bidder won.

Joe Miller, the general contractor on the project, had to work with an architect and an engineer to modify the plans to meet the exact needs of the Paces. Pace said that in addition to checking on a builder's reliability, you also can have him bonded so that you know he has adequate backing to build the house. Also, a homeowner and contractor establish draws, or periodic payments, so that the contractor doesn't get one lump sum at the beginning of the project.

Miller said he establishes allowances in the bid that give ceiling sums for the purchase of plumbing, electrical fixtures, kitchen cabinets and floor coverings, and always discusses important purchases with the homeowner before making them.

"I'm in this business for the long run, said Miller, and the only way I'm going to do that is by satisfying the customers."



by Archana Subramaniam by CNB