Frequently Asked Questions

Here are a few questions and answers that we thought may help you during your home builder selection process.

 

 

What is a Custom Home Builder / General Contractor?

A custom home builder constructs homes on scattered lots, often using designs selected by the homeowners themselves. A general contractor like Palazzo Development is responsible for the means and methods to be used in the construction execution of the project in accordance with the contract documents. Said documents usually include the contract agreement, including budget, the general and special conditions, and the plans, with call-outs and specification of the project, which are generally prepared by a design professional such as an architect. Home buyers contract with a general contractor to build what they want, where they want. At Palazzo Development, we build most of our homes on land already owned, or soon to be purchased by the homeowner. From time to time, we do offer a number of our own lots. We also assist in locating a piece of property that will fully satisfy your desires and fits your conceptual design. Interested buyers should contact us to determine availability.

 

How do I select a custom home builder?

During the course of construction you will have a series of homework assignments. Selecting a builder is one of your most important tasks. The problem is there is no foolproof way of making the right choice. Ultimately, it comes down to trust. Do not get involved with a home builder you do not trust, regardless of how attractive the price. Trust alone is not enough, but it is the starting point. You also want experience, competence, service, and value for your money. You are trusting your builder to help you decide home to spend a lot of money – you should do a good job of researching that person or organization.

 

Should I competitively bid my project to several builders or negotiate with one builder?

There is no right way. You should be negotiating with a builder whom you have researched thoroughly and believe to be reputable and trustworthy. Obviously, the danger with this method is that if your judgment is wrong, you could end up paying way too much for your project. Your home builder might be a great craftsman but overpriced. Or, he may be very fair on pricing but incredibly inefficient, which could end up being very costly as well.

In final analysis, the more you do your homework and find out what things should cost, the more likely it is that you will get value for your money. If you find a good builder whom you can trust, and he or she has a reputation for pleasing clients, being efficient and fair on pricing, this is the builder you probably want.

 

How do I pay for my custom home?

We would be happy to supply you with a list of reputable lenders who can help you with obtaining a construction mortgage to finance your new home. Your equity position in the building lot can serve as major collateral in securing construction financing. During the course of construction, you will be asked to make "draw payments" at pre-determined stages of completion which we will help coordinate with the lender. Once these payments are received, construction will advance to the next stage. Upon receipt of the final payment and funding of your home mortgage (if applicable) the keys will be turned over to you.

 

What is involved in preparing the site for building?

In order to prepare your home site for building, Palazzo Development will need to take care of the following items:

·                    Researching any environmental and building ordinances and codes that may apply

·                    Determining whether or not your lot has any shrink/swell soil conditions

·                    Clearing the home site of rocks and other debris

·                    Necessary excavation to satisfy foundation requirements and proper drainage

 

 

How long will it take to build my new home?

Building times vary depending on lot conditions, location, home size and complexity, and many unforeseen factors such as weather. Generally we are able to complete the majority of our homes in a timely manner. On average, it takes 9-12 months to build your new home once the foundation is poured.

 

Once my home is under construction, can I make changes? 

Changes made during the construction process can have minor or major impacts on the construction of a home and associated costs.  However, Palazzo Development understands that changes during construction are a fact of life.  The homes are custom to fit the exact needs and desires of the home owner.  It is very sensible, however, to be as thorough as possible during the design stages to minimize the additional costs of change orders.

 

How do I avoid overruns?

Overruns are the amounts spent building your custom home or renovating your house that go beyond the original budget. This might include changes, additional work, low estimates, or unforeseen conditions. It is always good to start a construction project with a contingency. It is rare that a residential construction project doesn't go over budget. Changes and additional work can be kept to a minimum by fully understanding what you are building and creating a well thought out plan before you start. If you can't read plans, then have the architect or builder explain them to you. Once you have accepted the design then you must remain disciplined to stay within the budget. You can always make the house nicer and nicer; but that costs money.

Unforeseen stuff happens. These are called latent conditions and unless you pay to do exploratory work before the construction begins, neither you nor your builder would know that these conditions exist. That is why you have a contingency amount earmarked. The unforeseen will always show up unexpectedly. So expect it! It sounds simplistic, but the answer is similar to other answers we have given you. Do your homework. This is your house, your money, and regardless of how good your home builder is, the more homework you do, the more you know about the plans, the estimates, the bids, the intended subs, the more you will control the process and reduce the amount of overruns.

Palazzo Development, Inc.

8560 S. Eastern Ave., Suite 150

Las Vegas, NV 89123

(702)401-3806

Nevada General Contractor's License # 78507