Building Process

Perry Homes wants the purchasing and building of your new Perry Home to be as pain free as possible. The following information is offered as a guide through the process of buying your new Perry home.

Purchasing Your New Perry Home
    Selecting Your Home Plan and Lot
    Earnest Money
    Preparing For the Construction Meeting
    Selling Your Current Home

Securing Financing
    Letter of Credit Approval
    Discount Points
    Recommended Lenders

Construction Meeting and Construction
    Working With Subcontractors
    Communication During Construction
    Construction Schedule

Inspections and Closing
    Buyer Walk Through Inspection
    Other Inspections
    Utility Services
    Closing With the Title Company

Purchasing Your New Perry Home

Selecting Your Home Plan, Subdivision And Lot
The first thing you should do is select the home you want to build. Perry Homes offers 34+ different plans to choose from, most of which are featured on this website under the Home Plans section. If you would like to see already built homes to get a feel for the finished size and look, I will arrange to tour the homes that you are considering building. If a home is not available to see at your preferred location, we will likely have it built as a decorated model or under construction as a field model at one of our Wasatch Front locations. Model homes are open Monday - Saturday from Noon - 6:00 PM. If you need to arrange other hours, you can reach me on my cell phone (801-891-9262). Please call in advance of the time you want to visit a model home as I may be assigned that day to another location.

The next step is to choose the community where you wish to build your new home. Each Perry Homes community has its own set of standard features. I can give you the pricing, option information, and designated list of standard features for each of our communities.

Once you choose the Perry Homes community where you want to build your new home, you must choose a lot. Please note that lot premiums will be added to the base price of your home for lots with added value. For example, a larger size lot, fronting certain directions, cul-de-sac location, view, etc. Please also note that Perry Homes does not locate similar home plans adjacent to one another facing the same direction.

Earnest Money
Once you choose a lot, you will need to put down an earnest money deposit of $500. This deposit will hold the lot with your home plan selection for 45 days. During this period you will be protected from any base price increase and have the time you need to make your color selections, determine your option choices (which upgrades you want), and secure a credit approval letter from your choice of lenders. Under special circumstances, Perry Homes may allow you to reserve a lot with a $200 refundable lot deposit for up to a week while you finalize your home purchase decision.

Perry Homes uses its own earnest money sales agreement. It is a four page combined earnest money receipt and offer to purchase document. The document outlines the terms of the agreement and sets baseline price, time and performance standards.

In the State of Utah both the buyer and seller in a real estate transaction are entitled but not required to utilize an agent of choice. If you choose to designate a buyer's agent for this transaction your agent needs to be present with you when you first visit our model home in order for Perry Homes to pay a real estate commission. I am able to work as a limited agent, which allows me to represent you, the buyer, if you so choose as well as the seller in the transaction. I spend much of my time assisting the home buyer with each step of the construction process and I value the option allowed me as a real estate agent to equally represent the home buyer in a Perry Homes transaction.

Preparing For the Construction Meeting
Once your offer to purchase is accepted you have up to 45 days (30 days for field models under construction) to make your color and upgrade selections in preparation for a Construction Meeting. I will provide you with a Construction Worksheet which identifies the product color selections that you will need to make in advance of the Construction Meeting. Most of your decisions may be made at your convenience from samples available in the sample area of the model home. Addendums to your earnest money sales agreement will be prepared during the meeting which will finalize your selections in writing and amending your total purchase price to reflect your final option choices. These selections are recorded on a "Buyer Selection" addendum that our superintendent will follow to conform the home plan selected to your specifications. Please note that future changes to this addendum may be subject to a $100 change order fee and could delay completion of the home so it is a good idea to take as much of the 45 days as you need to think about your color selections and upgrades. You may find it helpful to drive through several Perry Homes communities to see examples of different exterior choices, etc.

You should secure your credit approval letter from your lender in time for the construction meeting so that you may place your construction deposit with the confidence that your financing is secure. Your construction deposit will be due at the construction meeting. The non-refundable amount varies per location and will be counted as part of your down payment when you close on the finished home:

Canyon View	$2,500
Diamond Summit	$2,500
Western Springs	$3,000
Manila Springs	$4,000
Oquirrh Park	$4,500
Midas Creek	$8,000
The Ridge, Alta Ridge, Steeplechase, Fox Crossing	$9,000

If you decide to purchase substantial upgrades you may need to increase your deposit amount.

Prior to the Construction Meeting you should make the following color selections:
Exterior brick/stone, stucco, stucco trim, soffit and facia, doors, window frames, and shingles
kitchen cabinets, countertops, and appliances
bathroom countertops, tub and shower tile surrounds
entry tile or hardwood
fireplace tile or stone, shelf or surround
interior paint

You should also finalize your order of all upgrades to be added to your new home before the Construction Meeting. I will give you a list of standard upgrades and their pricing. Many standard upgrades are available allowing extensive customization of your new home. I will answer your pricing inquiries, either from the standard pricing list or through special pricing if your requested upgrade is approved.

When you have finalized your decisions on the Construction Worksheet please call me to schedule the meeting. Plan for 2-3 hours, preferably on a week day.

Selling Your Current Home
If your decision to purchase will require the sale of your present home, Perry Homes is prepared to work with you in this effort. In most cases, you may make your offer to purchase your new Perry Home subject to the sale of your home (contingency offer). This will give you first position for the lot and plan of your choice while allowing you time to continue the marketing of your home. However, Perry Homes may, at their sole discretion, give a 48-hour notice requiring you to remove your contingency and submit your construction deposit. This scenario would likely happen if another buyer, without a contingency, submitted an offer for the same property or if Perry Homes instituted a base price increase.

The majority of new-home purchasers have made the decision to move and proceed directly with the steps required to get into their new home as quickly as possible: Preparing the current home for sale, selecting their new home plan and location, finalizing color and option selections, and securing financing. When taken one step-at-a-time this process is normally accomplished within the six month period required to build a new home (often in less time, especially for buyers who pick up a home already started). These buyers do not make a "contingency" offer; instead, they move forward to complete their relocation with the most favorable terms they can secure.

Often, they plan to be "aggressive" on the sale of their current home or utilize "bridge" financing that is available from many lenders. You may wish to review special financing options with approved Perry Homes' lenders that enable you to free equity from your current home for the down payment requirement of your new home, enabling you to put your new home loan in place prior to the closing of your current home. With bridge financing you may secure your new home while you complete the sale of your current home. Also, this will give you the convenience of moving directly into your new home with minimum disruption.

We are often asked about providing assistance in the marketing of your current home. Perry Homes are marketed under an exclusive listing arrangement with Perry Realty, Inc., a licensed Utah real estate company. As a licensed agent with Perry Realty, I market all types of residential property in the State of Utah. Please feel free to ask for helpful, no obligation marketing suggestions, or if you want serious assistance, ask about my reduced commission rate for Perry Homes' buyers.

Securing Financing

Letter of Credit Approval
Before you place your non-refundable construction deposit with Perry Homes you should have a mortgage lender selected and receive a credit approval letter from the lender. Credit approval will ensure that your loan will be waiting for you when the home is completed provided certain conditions are met. These conditions are stated in the letter and usually require that your financial condition and debt load remain stable, and that construction of the home is completed and it appraises for no less than the agreed purchase price.

Discount Points
The ability of certain lenders to provide superior service has prompted Perry Homes to offer a financing incentive to buyers willing to utilize mortgage lenders recommended by Perry Homes. At times at selected locations Perry Homes will offer discount points or other incentives to buyers who use an approved lender. Additionally, the approved lender will credit the home buyer 1/2 discount point (up to $1,000) at closing by reducing loan charges. This incentive is available to buyers who select any of the competitive lenders listed below.

Recommended Lenders
These lenders will provide you a "no obligation" good faith loan estimate at your request, identify the type of loan best-suited for your financial needs, and offer the most competitive terms and rates for our market.

Veritas Funding, LLC - Tim & Elizabeth Roush
1935 E. Vine Street (6100 South), Suite 300
Salt Lake City, UT 84121
Office: 801.983.8233 Cell: 801.916.0274
Toll Free: 877.930.9000
http://www.teamroush.com
troush@teamroush.com
lroush@teamroush.com

Construction Meeting

The purpose of the construction meeting is to finalize your option and color selections. At the meeting we will essentially construct your home on paper and create a "Buyer Selection" addendum for our construction superintendent. He will use this document to conform the selected home plan to your specifications. It is important that you be prepared for this meeting since future changes to this addendum are subject to a $100 change order fee and could delay completion of the home.

When you come for your construction meeting, please bring the construction worksheet I have given you previously. You will also need to bring a list of all upgrades you wish to be added to your home. You will also review and sign the HOME OWNERS LETTER which covers construction site safety, final selections and change order fees, public utility services, and buyer-supplied lighting fixtures. Additionally, if you request and Perry Homes approves work equity items for you to undertake on your new home, then you will need to complete a WORK EQUITY AGREEMENT.

Working With Sub-Contractors
You may finalize your selections for carpet, light fixtures and cabinet enhancements after the construction meeting. Perry Homes will allow you to work directly with the electrical, lighting, carpet/vinyl and cabinet subcontractors to customize your selections beyond the standard allowance. You must pay these contractors directly for upgrades in accordance with the subcontractors billing schedule.

If you wish to include these costs in your mortgage loan amount, they may be added to your total purchase price with an addendum. You would then be reimbursed with a cash credit at closing, reducing the funds you would normally need to bring to closing by that same amount.

Any custom electrical work or cabinet enhancements that you directly contract for will need to be finalized by the time the home is framed. Carpet and light fixture decisions should be finalized by the completion of sheet rock.

Communication During Construction
After your Buyer Selection agreement is submitted and approved by the main office, it will be the responsibility of PERRY HOMES to complete construction of the home as specified. If any problem arises during the construction period that would require your review then I will be in touch with you for consultation. Likewise, if you encounter any problem or have a concern with respect to the schedule, workmanship or features selected for the home then please contact me directly. It is my responsibility to review any such matter with the superintendent and main office as appropriate. I will be your point of contact until you close on your new home.

Construction Schedule
After the construction meeting you may choose to sit back, watch progress and just wait for the Walk Through Inspection. Your new home will be conformed to your selections as specified at the construction meeting. Please be sure to follow through in a timely fashion with those subcontractors that you contact directly. Obviously, you will also need to assure that your financing will be in place by the time construction is completed.

It takes approximately 5 months to complete construction of your new home from the time PERRY HOMES secures the building permit. Construction follows a set schedule under the direction of the construction superintendent. As a production home builder, the basic materials and labor costs for your home plan are predetermined and already bid by subcontractors. PERRY HOMES manages the schedule and will deliver the home on or very near schedule.

Inspections and Closing

Buyer Walk Through Inspection
Two to three weeks before construction of your home is completed I will notify you and schedule your Walk Through Inspection. The Monday prior to the inspection date I will confirm the date and time with you based on our superintendent's Monday construction status report. The inspection usually occurs midday and will require approximately two hours.

The purpose of the Walk Through Inspection is to give you the opportunity to inspect the finish work on your new home and to allow the superintendent to conduct a final inventory of the workmanship of his subcontractors. Your inspection will focus on "cosmetic elements" of your new home (those components of the home that are visible). With the superintendent you will inspect over 200 features of your new home during the course of the Walk Through Inspection. You will receive many suggestions on how to better maintain and fully enjoy your new home.

Any items found to be incomplete, requiring repair or not meeting acceptable construction standards will be noted in writing on a long, formal checklist. You will receive a copy of this list, indicating in writing those items that will be corrected by PERRY HOMES. each of those items will be remedied, some the very next day, in accordance with the superintendent's ability to schedule the work with the appropriate subcontractor. In fact, the superintendent is eligible for a bonus based on his success in completing the repairs within ten days.

A representative from our main office will also be present at the Walk Through Inspection to review the builder's warranty program and present you with a home-buyers maintenance kit. Under this warranty the structural and mechanical systems in the home are covered for a full year.

Other Inspections
Prior to your inspection the home will have received careful inspections from government agencies and your lender. Today's building codes are more stringent than in the past. The Utah State Legislature has enacted rigorous new seismic construction requirements for new homes that are enforced by the local municipality. The building department of the municipality will formally inspect the home at each stage of construction, i.e., footings, foundation, framing, electrical, plumbing, insulation, and finish work and require that the home be in full compliance with the building code prior to final approval and occupancy. The day of your Walk Through Inspection is often the day your home will receive its final inspection and approval from both the municipality and your lender.

Utility Services
Approximately two weeks prior to your Walk Through Inspection you should contact the local public utility companies and the municipality to sign up for utility services: water, sewer, garbage collection, natural gas, electric power, and telephone. All public utility services should be in your name no later than the date of closing. Also, check with the local postmaster to receive instructions for the placement of your mailbox.

Closing With The Title Company
You will need to close on your new home with the title company within two business days of your Walk Through Inspection or final municipal approval, whichever comes later. Any delay beyond the two days will likely result in the assessment of interest carrying charges. To secure occupancy as soon as possible, many purchasers will complete the Walk Through Inspection mid-day, meet with the title company later in the afternoon, and start moving into the home the same evening. Once closing documents are executed with the title company and closing costs are collected, you may have the keys to your new home! Recording of the new deed and funding of your loan will not hold you up from enjoying your new home.

The closing is handled by Meridian Title Company, 64 E. 6400 South, Murray, UT 84107. Sharon Kearns at 264-8888 will likely serve as the escrow officer. As your agent I will attend the closing and help ensure that all charges are in line with the agreed terms of the transaction. You set the terms of your loan, closing costs and prepaid charges in consultation with your loan officer. Remember to secure hazard insurance from a carrier of your choice. This will need to be in place prior to your taking occupancy of the property.

Your loan officer will give you an estimate of the funds you will need to bring to closing. The title company will require certified funds. On the morning prior to the closing you may wish to contact Sharon directly for an exact final figure that would include your lender's estimate plus prepaids and taxes prorated to the date of closing. Another option would be to attend the closing, review and sign all the documents, and then visit your bank to pick up a certified check.

Always feel free to contact me directly for any questions you may have at any step of the process. I am quite easy to reach on my mobile phone (801-891-9262) most any day of the week, from 9:00 AM to 9:00 PM. I recognize that purchasing a new home is a major project and there are many uncertainties to address. Over the years I have observed family after family take on this task and achieve their goal. It is my belief that if you under take this project one step at a time that you too will accomplish your objective. At each step of the process, obtain the information that you need to make an informed decision that will work for you, and then you will feel comfortable to move on to the next step. Each step, taken in its order, will lead you to where you want to be.

I am here to help you with the information and service you need for this process, and to help you avoid any mistakes. It is my goal to share in the satisfaction that I know you will receive from achieving your goal - that new home designed to meet your needs and to give you and your family years of enjoyment!