A guide to Hilton Head Island and Bluffton area real estate, rentals and lifestyle
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Sounds simple right? e line made famous in the hit movie "Field of Dreams," makes the process seem like an easy home run. Better take a deep breath and a couple of practice swings. While building your dream vacation home will certainly result in additional time with friends and family - build a beach house and they will visit - be sure and do your homework fi rst. KNOW YOUR TERRA FIRMA Building in a coastal environment requires special considerations. When you fi nd a beautiful lot, get a survey and make sure it includes the FEMA fl ood lines. Also know your property's elevation for insurance purposes. Plan for a Tree and Topography Study; Hilton Head loves its ancient specimen trees and protects them from random removal. Realize the new construction guidelines implemented by the Town of Hilton Head requiring hurricane-rated windows, certain roofi ng structures, fl ood vents and higher elevations are there for the protection of your family and your investment. ese hearty add-ons may cost extra on the front end, but could save you thousands of dollars in the future. HIRE THE RIGHT ARCHITECT AND BUILDER Building a home is a longer process than buying. Plan accordingly. Interview your architect fi rst, and the builder second, and interview more than one. Stay local. No one knows the island building and permitting process like an islander. Ask for references. Insist on a walkthrough of prior projects and decide if you like what you see. Importantly, ask about timelines and workfl ow. If they're in demand and have several projects on the books, your home start could be several months away. Lean on your local realtor, the Hilton Head Area Homebuilders Association or the American Institute of Architects, Hilton Head chapter, and don't be too shy to ask questions. IS IT SMART TO RENT WHAT I BUILD? Many buyers don't know the answer to that question. e thought of renting your brand new bungalow might not be appealing until you realize the ROI. If off setting the cost of carry with short term vacation rentals are in your building business plan, make certain your architect and builder are aware. Custom, and typically more expensive interior and exterior fi nishes such as lighting, fl ooring, marble fl oors, exclusive European appliances and imported stone will drive up the cost of construction and may ideally be saved for when your vacation home becomes your forever home. CAN YOU GET A LOT LOAN? In the past few years banks have become slightly more willing to provide lot loans, roll them into construction draws, and fi nish with a permanent conforming mortgage. But it's still not as easy as buying an existing home. Additionally these fi nancing terms can come with additional fees, closing costs and insurance requirements. Be prepared to put down at least 25% on a lot loan. ere are a handful of banks on Hilton Head that off er lot and construction loans. Ask your realtor for the best referrals. YIKES! SHOULD I JUST BUY A HOME? In short, it depends. e cost of construction on Hilton Head has gone up considerably over that past 2 years. e cost of materials and labor has increased as much as 8% - 22% percent over the past 18 months. Builders are busy and good labor is hard to fi nd. ese market variables have resulted in construction costs starting at $250/sq. . for 'basic' custom homes. If you add hardy plank siding, hardwood, tile and stone showers, pools, pavers, fi replaces and ample windows to capture the Lowcountry light costs can rise upwards of $350-$400/ sq. ., and signifi cantly higher. is doesn't include landscaping, POA fees, or the cost of land and design. Sometimes a buyer can secure an exciting home for less than it would cost to build it, but not always. Still new homes are in high demand. As soon as that last nail is hammered, sit back, enjoy and let appreciation work its magic. For more information on Hilton Head home buying and building, connect with Lynne Anderson at 843.384.5426, or email lynneriggsanderson@gmail.com. Many thanks to local awardwinning Architect J. Terry Rosser at 843.384.8301 for insight into the building process today. By Lynne R. Anderson REALTOR, Accredited Buyers Rep Sea Pines Real Estate at the Beach Club BUILD IT, AND THEY WILL COME www.CallenIns.com 843-681-2221 1036 William Hilton Parkway | Hilton Head Island, SC 29928 Call for your Free Home Quote Primary/Secondary/Rental Properties Are You Prepared? Callen Insurance Services Homeowners • Auto • Boat • Commercial • Life • Health Ask for Free Consultation for Retirement Income Planning Estate Planning Long-term Care Life, Disability and Health Insurance J O H N M C M A N U S F I N E A R T P H O T O G R A P H E R L O W C O U N T R Y S C E N E S www.jmcmanusphoto.com (912) 441-2873 18