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Oregon, WI

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Frequently Asked Questions

Do builders in Wisconsin need to be licensed?
No. However, in order for a contractor to obtain an building permit from the State of Wisconsin, he/she must be certified. Consumers can check to see if a contractor is certified be calling the State of Wisconsin Department of Commerce, Division of Safety & Buildings at 608-266-3151.

Is there a standard warranty to which all builders adhere?
No, homebuilders in Wisconsin are not required to offer or provide a warranty for new home construction, and there is no state warranty program. However, many builders do offer warranties, which vary in length/scope from builder to builder.

What's in a construction contract?
The documents for the construction of a new home usually contains three components: Plans, specifications and the contract. All contracts have certain standard elements: names of the parties, dates of transaction, identification of the property, price, financing provisions, statement of when construction will commence and be completed, plans and specifications (including blueprints, a specification list, color selections, options and other items), information about change orders, ownership of the plans, procedures for site visits, inspections and site clean up, information about warranties on workmanship and materials, home owner's association (if applicable) and settlement procedures.
The Contract is a legally binding agreement for what is probably the largest purchase you have ever made. Consider asking your attorney to assist you in understanding the documents you will sign.

What's the standard cost of building a home per square foot?
Since so many variables make up the cost per square foot, such as lumber prices, amenities chosen, time of year, etc., there is no "Standard" cost per square foot. When comparing bids, consumers should be sure they are comparing "apples to apples".

What's a walk-through?
Before you close on a new home, you and your builder will "walk through" the house to conduct a final inspection. The walk through provides an opportunity for both of you to identify items which may need to be corrected or adjusted. It also allows you to learn how your new home works. often the builder will use the walk-through to educate buyers about the operation of the home's components, the buyers responsibility for upkeep and maintenance and warranty coverage and procedures.

What are allowances?
Your contract may include an allowance that earmarks a specific dollar amount for specified items in a contract for which brand, model number, color, size, or other details is not yet known. Allowances are included in the contract total and your mortgage. if the actual cost of an allowance item selected exceeds the budgeted allowance, you can pay the difference in cash or ask your lender to approve a higher mortgage, if the costs are lower, you will receive a credit back at closing.

If I have a custom home built, do I own my home's building plans?
Under federal law, copyright protection is given to architectural drawings and plans. An original building plan receives copyright protection as soon as it is created. This is true even if the plan has not been registered with the U.S. Copyright Office. Only the copyright holder has the right to reproduce the plans, give consent to someone else to copy the plans or create new designs from the original plan.

What is a construction draw?
This is the procedure for paying with a construction loan. The procedure for paying bills during construction is called a construction draw. Most new homes will have 3-4 draws. Usually, this is how it works: the trade contractors or suppliers submit invoices to the builder as work progresses, and the builder processes them in one of two ways:
        1)    The builder compiles them & processes a draw request which he may ask the homeowner to sign. He then forwards the request to the title company or lender (who orders a jobsite inspection to compare expenditures listed and work done) for payment. Once the inspection is complete, the title company or lender sends payment to the builder who then pays his sub contractors.
        2)    all invoices are forwarded to the title company or lender which pays the subcontractors directly after inspections are completed. Lien waivers may be requested by the homeowner or the bank as proof that the builder paid his subcontractors.

What is "Green" building?
The basic environmentally conscious principle behind "green building" is for buyers and builders to: rethink, renew, reduce, reuse, recycle and restore. In essence, green building utilizes environmentally friendly building practices designed to protect or reduce the imp0act of the building on the environment. The idea behind "building green" is to construct homes that are healthier to live and work in while utilizing recycled materials whenever possible. In addition, "green built" homes feature exceptionally efficient appliances and internal housing operations systems. Consumers benefit from building green by saving energy, minimizing waste, optimizing interior spaces and using high-efficient appliances. http://www.greenbuilthome.org