Welcome to the ever-growing list of Home Building Terms that everyone in the industry should know.

A special thank you to Howard A. Zuckerman for giving me permission to include many words from his book, The Complete Home Building Guidebook.

Have a homebuilding term that you’re struggling with (or think needs added)?  Use the form at the bottom of this page to submit your words, and I’ll be sure to let you know when it gets added.

A

  • A&D LOAN – This acronym stands for Acquisition and Development Loan.  This is a loan that a Developer secures to purchase and develop a parcel of ground.
  • A/C – The abbreviation for air conditioner or air conditioning.
  • A/C CONDENSER – The outside fan unit of an air conditioner.  The condenser removes heat from the gas and converts the gas into liquid before pumping the liquid back to the coil in the furnace.
  • A/C DISCONNECT – The main electrical on/off switch for the air conditioning unit located near the condenser.
  • ACCESSIBILITY – In homebuilding, this term is used to describe how easily a home is able to be used and “accessed” by those who are physically disabled.
  • ACOUSTICAL TILE – Special tile made of various materials – including:  mineral, wood, vegetable fibers, cork, or metal.  The tile covers walls and ceilings and controls sound volume.
  • ACRE – A measurement of land totaling 43,560 square feet.
  • ADHESIVE – A natural or synthetic compound used to adhere or glue different materials together in construction, including (but not limited to):  boards, floor tile, fabricated plastic laminates.
  • ADU – This acronym stands for Accessory Dwelling Unit which is a separate livable residence that is on the same property as the main house.  These aren’t legal at all places, but – where they are – they are often used as a place for extra family members to live or as small rental units to provide additional funds to the primary homeowner.
  • AERATOR – Round in shape with a screen on the end, an aerator screws onto the end of a sink faucet spout and mixes water and air to allow for smooth flow.
  • AFFORDABLE HOUSING – Not to be confused with Attainable Housing (see below), Affordable Housing is housing that is subsidized by governing bodies to allow people earning much less than the Area Mean Income to buy/rent.
  • AGGREGATE – A sand and stone mix, aggregate is the primary component of concrete.
  • AIR-DRIED LUMBER – Lumber stacked up in yards or sheds for a period of time to minimize moisture content (which should appropriately be 12-15%).
  • AIR DUCT – A pipe (rigid or flexible) that carries warm and cold air to rooms and then back to a furnace or air conditioner.
  • AIR SPACE – The space between insulation facing interior or exterior wall coverings (usually a one-inch gap).
  • ALCOVE – A recess or small room off of a larger room – typically used as a sitting area, coat room, or storage area.
  • ALLOWANCES – Money specifically set aside in the construction contract for items which have not been fully selected and specified in the contract to which actual costs will be used to finalize numbers as they are incurred with respect to the allowance.
  • AMORTIZATION – A payment plan by which a loan amount is reduced every month through payments of the principal and interest.
  • AMORTIZATION PERIOD – This is the length of time to pay off Permanent Financing (see definition on this page).  Often, in new home construction, this is for 15 or 30 years, and the time period is agreed upon between the Homebuyer and the Lender.
  • AMPERE – The flow rate of electricity through electric wires (often shortened to “amps”).
  • ANCHOR – A fastener, usually metal, used to attach parts such as joists, trusses, and posts to masonry or masonry materials.
  • ANCHOR BELT – A threaded rod placed in masonry construction to fasten the sill plate to the foundation.
  • ANCHOR BOLT – A special bolt used in masonry construction that secures a wooden sill plate to concrete, a floor, or a wall.
  • ANNUAL PERCENTAGE RATE (APR) – Annual costs during the life of a loan that includes interest, service charges, points, loan fees, mortgage insurance and other fees.
  • APPRAISAL – A valuation of property performed by an expert.
  • APRON – A paved or concrete area at the juncture of a driveway and a street.  Alternatively, an apron is also a board used as trim and installed under a window sill.
  • ARCADE – A set of arches supported by columns or piers, providing an open passageway.
  • ARCH – A self-supporting curved structure that also supports the weight above its opening with mutual pressure.
  • ARCHITECT – A person who has completed a degree program and is licensed by their state to design and draw up plans for buildings and structures.
  • AREA MEDIAN INCOME – This is a dollar amount that pinpoints the midpoint of an area’s income distribution.  Half of the incomes in that area would be above this dollar amount.  And half would be below.
  • AREAWAY – A recessed area around the foundation and below grade that allows light and ventilation into a basement window.
  • AREA WELLS – Barrier walls of concrete or corrugated metal built around a basement window to hold back the earth.
  • AROMATIC RED CEDAR – Building material with similar characteristics to Western Red Cedar primarily used for chests and closet linings and known for its moth-proof value.
  • ARRIS – A sharp edge formed at the meeting of two planes or surfaces – found on moldings, doors, shelves, and cabinets.
  • AS-BUILTS – This term is used to explain blueprints and/or other site-related documents that show the house “as it was built.”  A lot of things change during the Construction process from the time the original blueprints were drawn up.  Redline plans (see definition on this page) were done to show changes, and some actual items in the house needed to be changed (because they couldn’t work as drawn), etc.  The As-Builts make a great reference point for future work that a homeowner may want to do on their house.  Often, an As-Built can also show the house “as it was built” on the lot itself – and requires a Site Engineer to verify the placement of the the house.
  • ASH PIT – The space under the hearth of a fireplace that collects ashes.
  • ASPHALT SHINGLES – A type of roof shingle made from asphalt impregnated felt and covered with mineral granules.
  • ASSESSMENT – A property tax or value based on the worth of a property.
  • ASSESSOR – A public official responsible for property valuation for the purposes of taxation.
  • ASSET – This is an accounting term that has to do with your Company’s Balance Sheet.  An Asset is something your company owns and/or could be turned into cash (or IS cash).  Work-in-Process is considered an Asset.
  • ASSIGNEE – Someone who is transferred interest in connection with a mortgage or contract for a home or piece of property (typically, the purchaser).
  • ASSIGNOR – Someone who assigns a mortgage or contract for a home or piece of property (typically, the seller and/or the lender).
  • ASSUMPTION – A process that allows a buyer to assume responsibility for an existing loan instead of getting a new loan.
  • ASTM – An acronym for the American Society for Testing Materials – a developer of international construction standards.
  • ASTRAGAL – A molding attached to one (1) door of a pair of swinging double doors that the other door strikes against.
  • ATRIUM – A center hall or open court inside a structure.
  • ATTAINABLE HOUSING – Not to be confused with Affordable Housing (see above), Attainable Housing is housing that can be afforded by people earning around the Area Median Income.
  • ATTACHMENT – A legal seizure of a property requiring payment of a debt.
  • ATTIC – The unfinished area between the roof and ceiling of a house.
  • ATTIC ACCESS – An opening typically in the ceiling of a house that provides access to the attic.
  • ATTIC VENTILATORS – Screen openings in the attic areas of houses in order to provide air/ventilation to that attic.  These are often located in the soffit area, in gable ends, and/or along the roof ridge.  Some are power-driven fans hooked up to the electrical system.

B

  • BACKFILL – When a new home is started, the hole for the foundation is larger than the foundation itself (to allow room to work).  Backfilling is a process done shortly after the foundation is complete whereby the excavator will push dirt back to the foundation – to help support the foundation AND keep the job site safe for workers.
  • BIRD BOX – This is a term used to describe the bottom “box” that is created at the triangle intersection where the roof line ends and returns back to the house.  It’s typically covered in aluminum.
  • BLUEPRINT – This is a generic term used to describe the detailed drawings used to build a new house.  These are also sometimes referred to as the “Working Drawings” or “Plans.”
  • BRICK LEDGE – This is a part of the foundation (or other wall) that is designed for brick to sit on.  Since brick is often 4″ deep, the brick ledge is also often 4″ deep.
  • BUILDING CODES – This is a set of rules, regulations and minimum standards to which  a new home must be built.  Enforced by a local governing body, building code inspections are done at several points throughout construction to ensure compliance with the building codes are being met.
  • BUILDING SETBACKS – This is a restriction on how close a new house can be built to the edges of a lot.  These are typically required on all sides of the lot and are shown graphically as a dotted line on Plot Plans (see definition on this page).
  • BUILT TO CODE – This terminology means that the area of construction to which this phrase is being applied (which, in some cases, is the entire house) is built to the minimum standards required by Building Codes.
  • BUYING DOWN THE RATE – This term is used in conjunction with the mortgages that Home Buyers need to secure to pay for their new home.  “Buying down the rate” involves having the Home Builder essentially pre-pay interest amounts to the lender to let the Home Buyers have a lower interest rate (meaning lower mortgage payment) for a certain amount of time.  It’s typically used as a Sales Incentive in times when interest rates are rising.

C

  • CALLBACK – This term is used in the Warranty Department when you need to schedule a Trade Partner or Field Employee to visit a Home Buyer’s home to make a repair.  Essentially, you “call” the Trade Partner “back” to the house.
  • CERTIFICATE OF OCCUPANCY – Often known as C.O. (or “the C and O”), this is the official document provided to the Home Builder from the local governing body to certify that the house meets applicable building codes and Home Buyers can move in.
  • CHANGE ORDER – This is a mutually-agreed upon change to the construction work being done on the new home – best if in writing.  This can be work changed from the Trade Partner to the Home Builder – or – it can be a change requested/needed with the Home Buyer (sometimes referred to as an Addendum).
  • CONSTRUCTION LOAN – This is a loan that is secured by the Homebuyer (or the Home Builder) that pays out portions of that loan to the Home Builder as the house is being built.  The Lender may provide a Draw Schedule that will outline how much money can be disbursed based on the work completed at that time.  A Draw Request is sent to the Lender when money is requested, and the Lender will send an Inspector to the job to verify the work is complete.  Once verified, money is sent to the Home Builder.
  • CONSTRUCTION-TO-PERMANENT FINANCING – Most Lenders now offer a loan package to the Homebuyer whereby Construction Draws are being sent to the Home Builder as the house is being built (see Construction Loan on this page).  When the house is complete and all Construction Draws are paid out, the balance of all those Construction Draws are turned into Permanent Financing (see definition on this page) for the Homeowner to pay based on the agreed-upon Loan Terms.
  • CRAWL SPACE FOUNDATION – This type of foundation is approximately 4′ high (tall enough to “crawl” through it), and it can be made from concrete block or poured concrete.  Usually, vents are placed around the crawl space foundation to allow air to move in/out at different times of the year (and keep humidity low).  Occasionally, the crawl space foundation includes HVAC (see definition on this page) to keep the area at approximately the same temperature as the house itself.  When this is done, it’s known as a Conditioned Crawl Space.
  • CRITICAL PATH SCHEDULE – The schedule that Home Builders used to build their house includes certain activities that MUST happen before another activity happens in that same schedule (e.g. Insulation in the walls MUST happen before Drywall is hung).  If the earlier activity is delayed, it will delay the next construction activity (and, very likely, the entire schedule).  So, any and all schedule activities that tie together this way form the entire Critical Path Schedule.
  • CRM SOFTWARE – Short for Customer Relationship Management Software, this is a product typically used by your Sales/Marketing Team Members to track and interact with your prospective (and active) Customers.
  • CROSS SECTION – Shown on the blueprints for a home, this is a visual depiction of the construction of a house shown from a side view, showing the different floors and ceiling heights – much like you could see the layers of a cake if you cut a piece out.
  • CUSTOM HOME BUILDER – This type of home builder typically has very few (if any) standard floorplans to offer to customers.  Instead, the Home Builder meets the Home Buyer and helps design a floorplan that meets the needs and the budgets of the Home Buyer.  Floorplans are drawn and the home is built to those specifications.  Sometimes, this type of home builder is also referred to as a Design-Build Home Builder.
  • CUSTOM OPTION – This is an addition, a removal or a change to a house that is not found on the predetermined list of available Options (see definition on this page).  A process typically revolves around a Custom Option Request whereby the Home Builder must do some additional and/or special estimating to determine the feasibility and the cost in order to set a Sales Price for it.

D

  • DEPOSITS – These are payments made by the Home Buyer to the Builder towards the Purchase Price of the House they are buying.  Some of these are paid on the House itself.  Some are paid for Options and Personal Selections added to the House.
  • DESIGN-BUILD HOME BUILDER – See Custom Home Builder on this page.
  • DRYWALL – This is the wallboard hung on the framing of interior walls to create the actual walls of the house (to which paint is applied).  Special drywall known as moisture-resistant drywall is applied in areas where moisture is more prevalent (bathrooms and basements, primarily).

E

  • EASEMENTS – These are parts of the lot that give other entities/individuals rights to access on a building lot.  Typically, you will see easements for utility companies (for their underground lines running across the front of the lot) in a residential development.  You may also see easements for stormwater runoff or even for access to a community park (for a walking path).
  • ELECTRICAL – This is a term used for the wiring to supply electricity to and throughout the house.  Often, light fixtures are included in the blanket term of “electrical.”  It is considered one of the Mechanical Trades.
  • ELEVATION – An Elevation is the “look” of a house from the outside.  Typically, Home Builders assign several different Elevations to the same Model (see definition on this page)  For example, one Elevation may be all siding; one may have half stone or brick; one may have all stone or brick; and another one may have a full front porch.  Elevations are given names as simple as:  Elevation 1, 2, 3, A, B, C – or – they may have more marketing-savvy names like “Craftsman,” “Traditional,” etc.
  • ERP SOFTWARE – Short for Enterprise Resource Planning Software, ERP Software is an all-encompassing software used to manage your homebuilding business.  Some software can span all facets of your business:  Sales, Accounting, Estimating, Purchasing, Land Development, and Warranty.
  • ESG – Short for Environmental. Social. Governance. This term is often added to those housing and community strategies that are good for everyone’s health, wealth, and planet.

F

  • FOOTINGS – These are the very base of much home building, and they are mostly concrete that are poured to a certain width and depth to meet building codes to support the rest of the home and/or structures.  When building a foundation (see definition on this page), the footings are typically poured first.  If you are looking at these after they are poured, you’ll most likely see the “outline” of the foundation – and – any places where support posts may be added (in the middle of the soon-to-be foundation or where a deck or interior basement post may be set in the future).
  • FORM-BASED ZONING – This is a type of Zoning Code that focuses more on the size and scale of buildings moreso than only Density and Uses.
  • FOUNDATION – This is the bottom part of a home on which everything else is built.  Foundations come in different types:  full-height basement, crawl space, and concrete slabs – to name a few.

G

  • GABLE – This is a part of the roofline of a house that is viewed as a triangle when looking at it.  You usually see this on the ends of the house as you look to the roof.
  • GRADING PLAN – Similar to a Plot Plan (see definition on this page), this plan is a drawing that is completed to show how the ground around the house needs to be shaped to ensure water flows properly away from the house and/or to maintain stormwater flow.  Differences in “grade” (aka the slope) are shown with lines on the plan and a number that depicts the height of that line.  These grade lines are often shown at 5′ or 10′ intervals.  The closer the lines together, the steeper the grade will be.

H

  • HEADER – This is a beam that is built across openings in the framing (like windows and doors) that evenly disperses the weight to the outsides of the opening to ensure structural integrity.
  • HOME AS A SERVICE – This phrase is being used to think of more products and services that Home Builders can offer to their Buyers – that extend beyond the physical house itself.  Think of things like finance, home services, and other housing solutions to help build customer relationships that go past the one-transaction sale.
  • HOUSEWRAP – This is a product that Home Builders apply to the exterior of a home as it is being framed.  It’s literally a product that comes on a roll (like wrapping paper) and is rolled out an installed to assist with weather and temperature control.  There are building codes that specify exactly how this must be installed.
  • HVAC – This is an acronym whereby the letters simply stand for Heating, Ventilation, and Air Conditioning.

I

  • IMPERVIOUS COVERAGE – This term refers to the areas of a homebuilding lot that get taken up by things that don’t absorb water into the ground, including (but not limited to):  the house, paved/concrete driveway, sidewalks, patios, etc.
  • INCLUDED FEATURES – These are the products, fixtures and finishes that are included in the base price of the new home.
  • INDUSTRIALIZED CONSTRUCTION – This is an umbrella that encompasses the different methods being used to describe building homes off-site – including (but not limited to):  prefab, modular, panelization, factory-built, and volumetric building.  The Housing Innovation Alliance and Pro Builder Media are digging in deeper to offer insight to builders interested in adopting this methodology.
  • INFILL CONSTRUCTION – This term refers to home building activity that occurs on existing vacant lots within older communities, towns, cities, etc.  It is a way for home builders to build new homes without developing new raw ground.

J

  • JACK STUD – This is a vertical construction piece that sits below and on each side of a header to take the transferred weight down to the home’s foundation to ensure structural integrity.
  • JURISDICTION – This is a governing body that oversees the permit and inspection process for the home being built.  Other names for this might be:  Township, County, Governing Body, and/or Council of Governments.

K

  • KNEEWALL – This is a term used to describe a wall built that is not typically full-height.  This type of wall is often built to help support rafters and/or to fill in the bottom “triangle” where the angle of the rafter meets the floor (and make the wall usable).  Others often call a half wall under something like a countertop a kneewall, too.
  • KPI – This is an acronym for Key Performance Indicators – which are business statistics and metrics that a Home Builder watches to help run his/her business.

L

  • LENDER – This is a bank or other finance company who provides money to build and/or buy homes.  These may be through Construction Loans, Construction to Permanent Financing, or Permanent Financing (see definitions for all loan types on this page).
  • LIABILITY – This is an accounting term that has to do with your Company’s Balance Sheet.  A Liability is something that is typically owed to someone else:  loans, lines of credit, amounts due to Owners, etc.  Deposits received from Customers are considered Liabilities until settlement – as these often are due back to the customer in the event the house doesn’t settle.
  • LUMP SUM PRICING – When bidding out different parts of building a new house, some Trade Partners will offer pricing to the Home Builder using “lump sum pricing” – which means they lump all the parts, pieces and labor into one convenient price.  For example, a plumber may give a price to do plumbing on a house that includes the tubs, faucets, pipes, and all labor to complete the job with a simple flat price.  It’s quick and simple (and used by many), but it does not have the detail that some Home Builders want or need.  For detail, Home Builders rely on a Material List (see definition on this page).

M

  • MATERIAL LIST – A material list is a detailed list of parts, pieces, and/or labor for a particular part of construction.  Home Builders use this to order specific windows, doors, and items like lumber or trim materials.  It takes longer to create these than Lump Sum Pricing (see definition on this page), but it provides more detail for the Home Builder.
  • MECHANICAL TRADES – Those Trade Partners (see definition on this page) who work in plumbing, HVAC (see definition on this page), and electric are typically referred to as the Mechanical Trades.  Additionally, security and audio/video Trades are associated with mechanicals, too.
  • MISSING MIDDLE HOUSING – A range of house-scale buildings with multiple units – compatible in scale and form with detached single-family homes – located in a walkable neighborhood.
  • MODEL HOME – This is a home that is built and used as a Sales Center.  It’s purpose is to show potential Home Buyers the quality of construction offered by the Home Builder – and – to highlight both Standard Features and available Options.
  • MODEL NAME – A Model is the name given to the pre-designed house that is being offered for sale – essentially the name of the Plan.  Examples:  The Lincoln, The Mulberry, and The Juniata.  Different Elevations (see definition on this page) are then added to the Model to denote changes to the Plan (Ex:  The Lincoln A).
  • MONOLITHIC SLAB FOUNDATION – This type of Foundation (see definition on this page) is created by pouring concrete to form the Footings (see definition on this page) AND the concrete slab of the lowest level of the house all at once.  The edges of the concrete (perimeter of the house) are thicker to provide more support for the walls that will be built on top of them (which will support the roof and take on more weight).  Because it’s done in one step, it’s a fast way to complete this type of foundation.

N

  • NEW HOME ORIENTATION – This is often referred to as the “Walkthrough” – and is an official meeting at the new home at the end of construction before the Homebuyer settles on the house and moves in.  It is meant to be a time when the Home Builder is showcasing the new home and educating the Home Buyer on the mechanical systems in the house, suggested tips for maintaining the house, and an introduction to the Warranty Department (and its procedures).  Often, a Punch List (see definition on this page) is created and mutually signed.

O

  • OFFSITE CONSTRUCTION – While most home builders have traditionally sent Trade Partners to the job site to construct the new home, offsite construction is a technique where components of the home are built in a controlled environment (like a factory) and shipped to the job to be assembled.
  • ON YOUR LOT HOME BUILDER – This type of home builder builds their floorplans (or custom plans) on lots owned by the Home Buyer – rather than purchasing and building on lots owned by the Home Builder.
  • OPTION – Extra items added to a house that was not figured into the original Agreement of Sale and/or Base Price of the Sales Agreement.  These are typically pre-priced (and pre-estimated) based on the type of house being built, and they are offered up in a list from which the Home Buyer can choose.  Often, these have prices (and costs) associated with them.  See also Custom Options on this page.  Also sometimes referred to as “Available Personal Choices,” “Optional Products,” or “Optional Features.”

P

  • PERMANENT FINANCING – This is a loan that is secured by the Homeowner to pay for the new house.  The Loan Terms are negotiated with the Lender, and the Homeowner pays the Lender back over the course of the Amortization Period (see definition on this page).  Permanent Financing “kicks in” at the end of a Construction Loan (see definition on this page) – or – is taken out as one lump sum if the Homebuyer is paying the Home Builder at the end of construction.
  • PERMIT PACKAGE – To build a new home, Home Builders are required to get several types of building permits from local municipalities.  Applications provided by those governing bodies are filled out, and copies of the blueprints (and other reports of building performance) are submitted, reviewed, and approved by Building Officials at those governing bodies.  Once approved, payment is required to secure the building permits (which will also include a list of inspections that will need to be done as the house is built).  Permits may consist of:  Building Permit, Water/Well Permit, Sewer/Septic Permit, Driveway Permit, and Stormwater Permit (plus others).
  • PERSONAL SELECTIONS – These are the selections a Homebuyer makes to the products, fixtures and finishes of their new home to make their new home unique and specific to their tastes.  The process of selecting these finishes, etc. is known as Personalization (see below).
  • PERSONALIZATION – This is the ability Home Builders offer to their Homebuyers to make changes to plans by adding Options (See definition on this page) to their Agreement of Sale.  Personalization is a differentiator between new homes and resale homes.
  • PLOT PLAN – This is a map of the lot on which the new house is being built.  It is a graphical representation of the lot from above – showing lot dimensions, required building setbacks (see definition on this page), easements (see definition on this page), and the direction the lot (and, ultimately, the house) will be facing.
  • PLUMBING – This is a term used for the pipes that supply water and the drains that move water out of a house.  It is considered one of the Mechanical Trades.
  • PRE-APPROVED – This term is used when a homebuyer has applied for a mortgage to buy their new home AND the Lender has given a conditional commitment for the loan.  It is the next step after Pre-Qualification (see definition on this page).
  • PRE-DRYWALL WALK – This is an on-site meeting between the Home Builder and the Home Buyer to view the Rough-ins (see definition on this page) and, potentially, make any last-minute changes that will become much more difficult (and expensive) once insulation and drywall begins.
  • PRE-QUALIFIED – This term is used as when a homebuyer has provided income and expense information to a Lender, and that Lender has reviewed the information and believes the homebuyer will be able to get a loan.  It is often the first step in the homebuyers search for a mortgage and is the minimum expected before a Home Builder (or Realtor) typically starts working with a potential homeowner.  The next step in the homebuyer’s lending journey is to get Pre-Approved (see definition on this page).
  • PRODUCTION HOME BUILDER – This type of home builder sticks primarily with standard floorplans and standard options.  Their business model focuses on repeatable processes to build many homes quickly (similar to a “Henry Ford” approach where they “produce” the same homes over-and-over again).  Homes built in this type of business are typically done in residential developments on land owned by the Home Builder.
  • PROFORMA – A quick snapshot of the expected profitability of a new sale – reviewing Sales Prices and costs at that moment in time.
  • PROJECT MANAGEMENT SOFTWARE – This is a type of software that is designed to provide a single place to manage all aspects of a project.  Homebuilding-specific project management software is typically designed to handle the following:  scheduling, estimating, proposals, budgeting, job-cost tracking, change orders, documentation, and communication (between the Home Builder and Trades – and – the Home Builder and Customers).
  • PUNCH LIST – This is a term given to a list created for items to be completed on a new home.  Most of the time, it’s used at the end of construction when the Home Builder and the Homebuyer meet at the house to do the New Home Orientation (aka “Walkthrough”) a few days before Settlement occurs.  The Punch List is created and the items are mutually agreed upon – with the intent to complete those items before the Homebuyer moves in.  Punch lists can be created and used between the Home Builder and it’s Trade Partners – or – even with their own staff members.

Q

  • QUICK MOVE-IN HOMES – See SPEC Homes Definition on this page.

R

  • RADON – A gas that builds up in some soils but can’t be detected through any of the senses.  It’s been associated with cancers and other health concerns and is controlled or mitigated through the use of pipes and fans to send it outside of the house.
  • RAISED HEEL TRUSSES – This type of roof truss (see definition on this page) has additional height added to the area where the bottom of the truss meets the roof line of truss (the lower acute angles) to raise the entire roof line by a few inches.  It extends from the top of the wall on which the truss sits and elevates the truss.  This is occasionally done to allow for some more architectural items to be added to the front of the house, to get additional insulation in the ceiling, and/or to provide more room for some of the mechanical Trades.
  • REDLINES – This industry term typically refers to the “working drawings” that a Home Builder is using to build the house for the homeowners.  It comes from using a red pen to easily see changes that have occurred to the original plans (so they will show up better).  However, a red pen is not a requirement.
  • RETAINED EARNINGS – This is an accounting term found on Balance Sheets that represents the cumulative net earnings or profits that a company has after paying all other costs/expenses.  It’s a rolling number that is tracked from the time your homebuilding company starts operating as a business.
  • REVERSE GABLE – This refers to a change in the roof line whereby a triangle-shaped roof (the gable) intersects with a roof line that is running a different direction.
  • REVOLVING LINE OF CREDIT – Builders often finance construction of the homes they are building.  To do that, they obtain financing from Lenders.  Typically, the loans are “per house” (meaning a 1-to-1 relationship between loan-house).  A Revolving Line of Credit is a type of financing that is higher overall – but – allows a Home Builder to finance several homes at once (with a limit).  The balance on the Line of Credit goes up and down as the Home Builder builds and sells homes on that Line.
  • ROUGH INS – When this term is used, it refers to the work that the Mechanical Trades (see definition on this page) do after framing – but – before insulation and drywall occurs.  This entails plumbing supply and drain lines, electrical wiring and HVAC (see definition on this page) feeds and returns.  Essentially, it’s all of your mechanicals that are necessary – but – you won’t see once drywall is installed.

S

  • SALES INCENTIVES – These are discounts, “free Options” and other ways to assist Salespeople with selling new homes.
  • SCATTERED LOT HOME BUILDER – This type of home builder purchases random lots and builds homes on them for its Home Owners.  Some are done as SPEC homes (see definition on this page).  Others are built from the beginning with Home Buyers.
  • SEMI-CUSTOM HOME BUILDER – This type of home builder starts with a standard offering of floorplans (and many standard Options).  However, the Home Builder offers the Home Buyer the ability to customize the standard floorplans in ways not predetermined.
  • SITE DEVELOPMENT – This refers to the work that is done to take a raw piece of ground and turn it into a residential development, community, and/or simply to get a single lot into “buildable” shape.
  • SITE VISIT – When a homeowner visits their new home under construction, they are performing a Site Visit.  Often, this is a scheduled meeting with representatives from the Home Builder’s company to educate the homeowners on the process, to review any issues/concerns, and to answer any questions.  It is encouraged to do this during working hours with a Representative for safety and insurance concerns.
  • SITE WORK – To understand this term, think of all the things that are needed to be done on that involves work outside the structure of the house itself.  This work includes:  Excavation (digging the hole for the foundation, backfilling (see definition on this page), trenches to bring utilities into the house, spreading topsoil around the house), Landscaping, Driveways, Sidewalks, Well, and Septic Systems.
  • SKYLIGHT – This is a window installed in the roof.  It’s often used to bring natural light into an interior room – or – to bring more natural light into an room on the exterior of a house.
  • SPEC HOME – A SPEC home is simply a new home that the Home Builder has financed and started to build without a Home Buyer.  He/She hopes that a Home Buyer will purchase the home before finished – hence “speculating” on a sale (and a profit).  Other names used interchangeably for SPEC homes include:  Inventory Homes and/or Quick Move-In Homes.
  • STEM WALL FOUNDATION – This type of foundation (see definition on this page) entails pouring a Footing (see definition on this page) and adding a few rows of block (or poured wall) before pouring a concrete slab on top of those blocks.  This is done if a lot lays low and a concrete slab is desired on which to build the rest of the house.
  • STORMWATER REGULATIONS – Water caused by rain and storms needs to be controlled, and governing bodies pass regulations on how this needs to be done.  Developers and Home Builders are required to plan the appropriate flow of this water – ensuring it does not dump onto a neighbor’s property and/or effectively is managed either ON the lot or in planned stormwater drains of the Development.
  • STUCCO – This is a fine plaster decorative finish used primarily on exterior walls as a finish.  It’s a multi-layer process that is applied over a few days and includes a means of drainage behind it (to allow moisture to stay away from the house).
  • STUD – This is simply a structural element (usually of wood and/or of steel) that is used to build walls in a house.  When an entire wall of studs is installed, it looks like the skeleton of the house.
  • SUBCONTRACTOR – See TRADE PARTNER definition on this page.
  • SWALE – This is a planned low area of a lot that is used to control storm water.  It is often found along a property line (either ON the property – or – shared between neighboring lots).

T

  • TEMPERED GLASS – This is a specially-treated type of glass used in windows in certain parts of the house (bathrooms especially) whereby – if broken – will break into small pieces less likely to harm the person who fell through.
  • “THE HOUSE THAT SHE BUILT” MOVEMENT – Based on the best selling book of the same name by Mollie Elkman, this is a proactive movement to get young girls and boys interested in home building careers through reading, education, and activities.  The book features women in the varied roles of the home building process.
  • THERMAL BREAK/GAP –  This is a physical gap in thermal conductivity, placed in an assembly (like a wall), to reduce or prevent the flow of thermal energy between the inside and outside of a building.
  • TRADE PARTNER – A Trade Partner is any one of the people or companies that are hired by the Home Builder to supply labor and/or materials to help construct the new home.  Alternate terms:  Trade Contractor, Subcontractor.
  • TROLL – An individual who publicly posts and/or comments online to deliberately upset others (like Home Builders) when he/she is unhappy about an experience.
  • TRUSSES – Trusses are pre-built parts of the house pre-built in a factory (see Off-Site Construction on this page) that form either the flooring structure and/or the skeleton of the roof.  They are delivered to the site and set into place by the crews (and/or crane).  Roof trusses are often triangle-shaped and engineered to take the weight of mother nature.  Floor trusses can span across larger distances, and often are “webbed” or have access points built into them for the Trades to run plumbing, HVAC and/or electric wiring through them.
  • TURNKEY CONSTRUCTION – This is a term that indicates all work is done by either a Trade Partner to the Home Builder (ex/ the Plumber provides all labor and material for the entire job) or the Home Builder to the Homebuyer (ex/ the Home Builder provides everything to deliver the new home to the Homebuyer – and – they give the key to the Buyer (who can just go to the front door and “turn” the key to get in)). When related to the Trade Partner’s work, it’s sometimes referred to as “Lump Sum” pricing.

U

  • UNDERGROUND UTILITIES – These are the electric, cable TV, telephone and internet wires that run underground from the street to the house for power, cable, phone and internet.  Often included in this term are the water lines into the house, the sewer lines out of the house and the natural gas lines – all serving the needs of the homeowners.

V

  • VALUE ADD CONSTRUCTION – This type of construction renovates an existing building to “add value” to it.
  • VALUE ENGINEERING – In homebuilding, this is a process whereby all processes and products of a house are reviewed to make the build and costs as efficient as possible to improve quality.  It is not – as some believe – just “cheapening up the product.”
  • VALVE – This is a device used to turn on/off utilities – like water, gas, etc.
  • VANITY – This is a common term for the cabinets in a bathroom.
  • VAPOR BARRIER – To keep moisture out of the finished parts of homes, a Vapor Barrier is installed.  This can be paper-based (on the backside of insulation) or plastic based (used under concrete).
  • VARIABLE INTEREST RATE – Referring to the interest rate on loans for building a new home, a Variable Interest Rate (as its name suggests) varies based on some type of benchmark (e.g. the Federal Interest Rate).
  • VARIANCES – In homebuilding, variances are anything not planned during the regular course of construction.  Variances can be positive or negative, and they are a metric used by Home Builders to measure their home building and purchasing efficiencies.
  • VENEER – A veneer in construction is a thin sheet of finished material that can be found on different parts of the house.  One often hears of veneer being applied to wood products; however, it is also often referred to for the application of stone or brick.
  • VINYL FLOORING – This is a type of flooring that is sold in 6′ or 12′ widths and installed using an adhesive over underlayment – mostly in “wet” areas like the Kitchen, Laundry Room, or Bathrooms.  It is a soft material that is easily damaged – but – is cost-effective and more economical than ceramic tile.
  • VPO’s – This acronym stands for Variance Purchase Orders – which are the written orders (positive or negative) to Trades/Suppliers for Variances (see above) that occur on the jobsite.
  • VOC’S – This acronym stands for Volatile Organic Compounds and – in home building – is often referred to in products like paint.  For healthier living, Home Builders can choose low-VOC paints for their homes.
  • VOLTAGE – This measures the amount of pressure being pushed through an electrical system.  The higher the voltage (pressure), the more powerful (and dangerous) it is.

W

  • WALKTHROUGH – See New Home Orientation on this page.
  • WORK-IN-PROCESS – This is an accounting term that references all of the costs associated with building homes.  This is a calculation of all of your ongoing work.

X

  • XERISCAPE – This is a type of landscaping design that requires little or no water (and I needed a word that started with X).

Y

  • YIELD – This is the income expected (or realized) after deducting costs and expenses.  This can also often be referred to as the Net Income.

Z

  • ZIP SYSTEM – This is a name brand (owned by Huber Engineered Woods) of a series of products installed on the exterior of the framing of a house.  It can be identified by the unique green color of the sheathing – and – the ZIP branded tape needed for installation.  This is an alternative to simply installing bare sheathing on a house AND installing a type of housewrap on top.
  • ZONING – This has to do with regulations in a municipality, city, town, and/or county.  Zoning regulates the types (and quantities) of construction that can be done.  Home Builders always look to zoning to understand what can or can’t be built on a piece of ground.