The following contains information from "Building a Home on Hilton Head Island" by the Home Builders Association of HHI. It is to acquaint you with the terms used and requirements for building a new home on Hilton Head Island.
1. Tree and Topographical (T&T) Survey: Estimated Cost
$475
Sea Island Engineering - 681-3248
Beware of additional
surveys and perspectives cost.
2. House Plans, site plan and blueprints are required for all homes. Price can vary depending on the source. Beware of who owns the plans and cost if the builder does plans and not build home-Architects required in many areas and maybe all HHI for new Hurricane requirements.
Additional cost for copies to quote/build and site plan and new drainage plan required for HHP & MC.
3. Flood Elevation - minimum is 14' A.M.S.L.(above mean sea level) - only from the T&T can we get accurate elevations. Need to verify the zone through Trudy Johnson at Town of HHI. This can affect the cost of the house foundation and flood insurance greatly.
Beware that new flood material requirements start July 1, 1996 for houses on floor systems. See Citizen's Guide To Flood Awareness by Town of HHI.
4. ARB Fees: can vary greatly from Plantation to Plantation and can vary depending on size of home.
Range from $300 PD to $750 in Leamington to $2,000 for Wexford
Beware there may be added costs for ARB submissions for photos of front and back of lots to each side (PD & Leam), to front and rear perspective drawings (SP-$295), to 8X10 photos after completion (HHP)
5. Water and Sewer Tap Fees: can vary greatly from area to area. HH Plantation $1,450 to PD/Leam $4,200. Some areas want water and irrigation meters. Some lots need septic tanks in Sea Pines, Port Royal and Rose Hill (around $2,000 unless special system needed)
Beware of lots that do not Perc now that the owner goes to build several years later. Only $60 test counts and not good forever. Lot purchasers need to have valid/current $60 test for number of bedrooms they want to build.
6. Traffic Impact Fee: required by the Town of Hilton Head for every new home and paid at time of building permit. Now $816 per home plus new school impact fee $953 and additional fees in Beaufort County of $1200.
7. Building Permit: required on all new construction and
remodeling. Amount of cost varies on value of remodeling.
Beware of
Builders who want the owner to take out all the permits in the owner's name and
only get a fee. No recourse on the work of the builder or the subs. For
requirements see Building Permit Application Requirements by Town of HHI
dated 5-8-92.
8. Builder's Insurance: Make sure your builder has both liability and workman's comp insurance in force. Check to verify membership in local Home Builders Association, past client references, financial references and trade references.
9. Allowances in Quotes, Bids or Contract/Specifications:
Are the allowances suggested by the Builder or Architect/Designer up-to-date and sufficient to purchase the items to the quality you want? Make specific selections when possible to make a more meaningful price proposal.
Beware of Allowances which are too low so the Builder's bid/costs look good but do not reflect the actual price. Builder underestimates in order to get the job and then the price goes up when selections are made and a change order issued. Compare dollars to dollars on bids.
10. Flood Insurance: required in the "A" and "B" zones and now the banks are requiring it in the "C" zone. Cost will vary by zone and Finished Floor Elevation (FFE). NOTE: 6" (.5 feet) is considered the next foot in cost! $185,000 max approximately $350/year. Over $185,000 through Lloyd's of London for about $385/year per Don Earnhardt at Kinghorn Insurance 785-2101
11. Builder's Risk Insurance: purchased by the owner to cover the owner during the period of construction - similiar to homeowner's insurance. Normally for a period of 6 months with $1000 deductible.
Beware if the time to build your home is longer than 6 months and the
insurance runs out. Also, does it include wind and hail damage rider?
Cost
for $200,000 home about $680/ $300,000 about $1000 per Don Earnhardt at
Kinghorn Insurance 785-2101
12. Set Backs: vary by Plantation and by area within the plantation.
Be aware that there are different set backs for amenities and some set backs are based on vertical height and this varies in definition (18" to 36")
13. Survey: Some ARB's require foundation, Finished Floor Elevation Certificate (FFE), and/or finished as-built survey. Most lenders require as-built survey when home completed.
Who is to pay for these surveys if required?
required for building
14. Soil Treatment for Termites: required for building permit. The certificate is not a forever bond. Builder should supply a copy to the owner.
Need to have yearly inspection to keep policy (if any) in force. Especially important for out of town owners/second homes or rental properties.
15. Landscaping: Who has it done and cost? Need a plan to get final approval - how much is enough?
Clearing- best to have the landscape plan done before clearing so the Builder clearing will accomplish the landscape clearing and not have two expenses. Fill Dirt- cheaper through the Builder- does it need to be placed on the back of the lot because of tight set backs- swimming pools do not provide as much dirt as thought.
16. Square Foot Minimum Requirements: Can vary by type of home and plantation and area within plantation.
17. Decorating: Color paint and wall paper prep included in the price of the home?
18. Plantation Deposits: called landscaping or compliance deposits; Vary greatly in amount ($2,500 to $6,000) and requirements to get the deposit vary by plantation. How soon does the landscaping need to be completed? What is the procedure?
19. Realtor Commission: must be disclosed through Agency Disclosure Form. Only one disclosure if the lot sale and the home/builder part of the same transaction. If separate transactions a new disclosure is required.
Beware of Builders who do not put the commission in writing to you or your broker.
20. Downpayment with the signing of the Builder's Contract. Most Builders require a downpayment with the signing of the contract to pay for the building permit and other out of pocket immediate costs. Monthly payments from either the owner and/or bank financing the construction loan. Many lenders now have one time closing for lot purchase, construction, permanent loan. Other checks may be needed for deposits, water and sewer, impact fees, plantation deposits or other bank fees. Check with everyone so you are not surprised.