Guiding You Every Step of the Way

Our Process

Step 1

It Starts with a Conversation

We start every relationship by learning more about each other.  We’re here to educate you on the process of building your new home, and answer any questions you may have.

Pro Tip: We prepare a Preliminary Review that highlights any areas of concern early on so that you’re making informed decisions from the start.

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We start every relationship by learning more about each other.  We’re here to educate you on the process of building your new home, and answer any questions you may have.

Once we’ve had our initial conversation, our team will perform an initial assessment of the property and the home plan you have chosen.  The purpose of this initial review is to identify any potential issues or risks prior to you submitting an offer on the property.

Our RYG (Red, Yellow, Green) assessment highlights areas of moderate or severe concern.

We’ll present our findings, and you’ll decide with your agent if you are going to make an offer on the property.

Objectives

  • Meet your builder, answer your questions, make sure you’re comfortable with the process.
  • Initial Review of the property and home plan you have chosen to build.

Deliverables

  • Complimentary Preliminary Review

Key Outcomes

  • Ready to Start Land Acquisition Process

Step 2

Secure Financing

Having your financing in place early is important, because it demonstrates to the seller of your lot that if everything passes our inspections you’ll be in a position to close on their property.

Pro Tip: Working with a lender who understands new construction loans is important, we can recommend lenders who specialize in this!

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You’ll need to work with a lender who understands the nuances of new construction loans, and typically suggest a single close construction loan, which allows you to purchase the lot and the home all in one single closing.

We can help recommend a lending partner that can guide you through the entire process from start to finish.

Step 3

Safely Lock Up Your Land

Time is of the essence, and getting the property to build your dream home on is imperative.  We support you and your agent through this process by providing a framework for ensuring proper due diligence time and tasks are included in the contract to protect you prior to closing.

Pro Tip: Our contract provisions protect you from buying a lot that won’t meet your needs.

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Time is of the essence, and getting the property to build your dream home on is imperative.

We support you and your agent through this process by providing a framework for ensuring proper due diligence time and tasks are included in the contract to protect you prior to closing.

We will provide you and your agent with a Letter of Intent Template that you can use to present your initial offer and  clearly explain to the seller additional terms for due diligence.  This is the same approach that many builders take to protect their investment.

Once your Letter of Intent is accepted, we will provide New Construction Provisions that you or your agent should include in the contract between you, the buyer and the seller.  These additional terms and conditions protect you from buying a property in the event that your dream home can’t be built on it.

Deliverables

  • Letter of Intent template to use as a framework for negotiating the price and terms with the seller.
  • New Construction Contract Provisions to use with your contract to purchase the property.

Key Outcomes

  • Property Under Contract
  • Ready to Start Due Diligence

Step 4

Analysis & Planning

It’s time to get down to the details, and ensure that the property you’re investing in is right for you.

While due diligence is under way on the lot, we’ll be working with you to decide on the final details of your home.

Pro Tip: You own any completed due diligence on the property.  LotNova allows you to sell completed due diligence directly on our platform to other buyers if you don’t close on the lot.

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Professional Due Diligence

It’s time to get down to the details, and ensure that the property you’re investing in is right for you.

We’ll engage professionals to perform due diligence to ensure your home plan can be built on the lot you have under contract.   Although you’ll be incurring costs for these services, they were included in the price for your new home and we get paid at the closing on your land.  (If you don’t close on the land then you’ll have to pay out of pocket, but that’s why we did our Preliminary Review).

Interior & Exterior Selections for Your Home

While due diligence is under way on the lot, we’ll be working with you to decide on the final details of your home.

Whether you’re looking for one of our professionally designed interiors, or you want full control over the finishes of your new home, we’ll need to make choices. We’ll guide you through the process and help you get the most for your money.

Moving Forward

When due diligence is complete, and the interior and exterior selections for your home are finalized, we’re ready to finalize the details, including a final budget for your home.

We’ll review our findings from our due diligence, and provide professional guidance to you as you decide to proceed to close on the lot and begin construction of your new home.

 

Key Outcomes

  • Property is thoroughly reviewed and the home of your dreams can be built on your property.
  • Budgets updated based on lot conditions and other findings.

Frequently Asked Questions

How Long Does Due Diligence Take?

Due diligence is typically completed in 30-45 days from when a Seller accepts your offer.  The timeframe will be tailored to each lot after our Preliminary Assessment is completed.

Who Pays for Due Diligence?

While due diligence is paid for by the Buyer, it is in your interest to complete professional due diligence on your property.  Due diligence protects you from buying a lot that doesn’t meet your needs.

How Does Due Diligence Get Paid for?

The Package Price for the home and lot you selected included Due Diligence Services.  We get paid for these services when you close on the land.

What Happens If We Decide Not to Buy the Land?

You’ll still have to pay for due diligence services, but only LotNova allows you to resell your completed due diligence directly on our platform to other potential buyers, directly offsetting these costs in the future.

 

Step 5

Closing Time

We have a detailed budget, risks have been identified and a plan is in place.  It’s time to close on your land so we can get started!

Pro Tip: An experienced new construction lender understands that pricing may  change from initial estimates at the time you applied for the loan.  This is typical of new construction.

Step 6

Let's Get Building!

Let the fun begin! Our team handles everything, keeping you involved and informed throughout the homebuilding process.

Pro Tip: Your home will take about 5 months to build once permits are issued by the municipality.

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