27 02 Pros and Cons of Building New 05 Types of New Construction 06 Do I need an agent? 07 Builder Research
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08 Model shock! 09 Inspections & warranties 10 Financing 11 Paperwork 12 New Construction Process
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13 Your Final Walk-Thru
THE PROS AND CONS OF BUILDING NEW Pro: Brand new home versus “used” home.
There’s something to be said for the desirability of moving into a home that nobody has lived in before. Everything is perfectly clean and pristine, and every detail, from the biggest appliances to the molding along the baseboards was put there specifically for your use. While it’s not a necessity (and certainly many people love the pre-owned properties that they’ve purchased), if you’re someone who likes to keep things extra clean or is worried about scary surprises from a resale home, starting from scratch is a great way to go. Con: All builders are not equal.
The experience of building new construction varies among buyers because the policies, skills, and options available vary among builders. When choosing a builder for your new construction home, look beyond the pictures on their website and seek out more information to ensure you’re making the right choice. Check out other homes they’ve completed, talk to homebuyers who have previously built with them, and make sure there are no major complaints filed against them. You shouldn’t have trouble finding a great builder for your home; you just have to do the work to make sure whoever you go with will deliver what you’re looking for. Pro: Exterior and interior customization
Nobody knows your wants and needs better than you do, and having so much control over the details that fit your home to your taste and lifestyle is quite a luxury. Buying new construction means that you get to pick out everything from the color of your siding and trim to the placement of every single light bulb and outlet. Many of the things that you get to customize are difficult ie very expensive – to put in or move after a home is constructed. If you’re someone who loves design or just someone with a lot of preferences about what makes a perfect space, you’ll really enjoy getting to make so many decisions about the different aspects that make your house a home.
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THE PROS AND CONS OF BUILDING NEW Con: Limited options
While you pick what you want, there are far from limitless options dictating your choices. You can only add/change items listed as an option. Many builders will only let you choose between a few paint colors for your interior and exterior. For things like countertops and carpeting, you’ll likely only be able to choose among the options presented by the builder for that community. Pro: Limited options
But wait – limited options is a good thing, too! Unless you’re a home design pro, it’s easy to get paralyzed by the sheer amount of choices you can make when building a home. When building a custom home through a hired contractor instead of a development company, many buyers have to hire architects and designers to help them sift through the wide array of options and make smart decisions. In that way, having, say, six kitchen faucets to choose from instead of six hundred, is actually a benefit to buying new construction, and can help ease the stress that comes from having too many options. Con: Upgrades aren’t cheap
The first price you see when choosing a new construction home is the base price of the property. This includes the structure itself (without any optional add-ons, like extra bedrooms or first floor bump outs), and may also include things like the lot the home will sit on and the landscaping that will surround it – or not. It also includes all the standard finishes, which are often not the best looking or highest quality options. To get your house looking how you want it, you’re going to have to choose some upgrades, and those will quickly make the price of your home go up. Things like wood floors instead of carpet, recessed lighting, fireplaces, and updated kitchens are all going to add on to the cost of your home in big ways. Make sure to factor in additional costs and be conscious about finding a balance between getting the things that you want and staying within your budget.
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THE PROS AND CONS OF BUILDING NEW
Pro: Energy efficiency
Newer homes across the board are taking advantage of innovations in energy efficiency, and if you build new construction, chances are you will get a home that is specifically built to use less energy. There are a lot of variables in a home that can be optimized for energy efficiency, including insulation and air sealing, heating and cooling, and appliances. When you build new construction, you have more say over the strategies used to reduce your home’s carbon footprint. Your builder likely already includes some of those options, like energy efficient windows, which can prevent the 25%-30% heat gain and loss attributed to less efficient windows. Ask about other energy saver options as well, like dual flush toilets, smart thermostats, and LED lighting. Con: Can't negotiate price
When you’re buying a resale home, the price is set by the market and by the seller, who may or may not understand the true value of their home. For that reason, negotiating is just part of the process, and in certain markets you can even expect that you’ll pay less than the price that you see on the listing, When you’re buying new construction, however, what you see is typically what you’re going to pay, plus any upgrades. Builders won't lower the base prices on homes because that alters the comps of the development and will result in more buyers looking for ways to negotiate down. They may, however, offer some discounts or financial incentives, such as free or discounted upgrades so look for those instead of expecting to convince them to lower their price. Pro: Less maintenance costs
New homes aren’t necessarily immune from needing repairs, but the chances of having to fix a leaky roof or a broken pipe are significantly lower, meaning less stress and less money spent while everything is still new. In addition, most builders include a range of warranties with their homes, which may include a short term full structure warranty and a longer term exterior warranty. It’s a big financial benefit, and a nice relief in the years following such a major purchase. |4
TYPES OF NEW CONSTRUCTION PRODUCTION HOMES Production homes are typicall in in a subdivision. These builders will offer a few different floor plans to choose from. You can then customize (at a cost) the exterior and interior features you need. These homes will usually have smaller lot sizes the homes will be closer together. These are the most cost effective option CUSTOM HOMES These homes are typically in subdivisions or on your lot construction. You can completely design your dream home. Custom builders work closely with architects to deliver the highest quality and customization options. This would be the most expensive option of building new.
PBUILD ON YOUR LOT HOMES IIf you have land or would like to purchase land away from a subdivision this is an excellent choice. Some production and custom builders offer this option in almost every price point. You can put these homes any where you would like.
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DO I NEED A REALTOR FOR NEW CONSTRUCTION? The short answer is YES! You Will Want a representative, someone looking out for your best interests when buying new construction. Let's start this section off by making one thing clear: Builders pay the Agent's commission! That's right, the builder will pay your Agent to represent you and to negotiate a better deal for you. (Make sure to register with your agent before visiting the community for the first time) Finding a local real estate broker who is experienced in negotiating with builders is going to be one of the most important things you do in the new home buying process. You must make sure that your Realtor is someone who is going to work well with you. Find an agent who is transparent. because they’re going to tell you the truth whether it’s pretty, or ugly. You’re also going to want a real estate agent who is going to explain every step of the process Every Real Estate Agent is different, and it’s important that the Realtor® you’re working with one who can help you the most in the home buying process. Once you’ve selected an agent, it’s time to develop a plan. What criteria are you looking for in your next home? Your Real Estate Agent will be able to help you figure out your wants and your must have’s. Now that you have your team together, it’s time to begin researching different builders in your area. It's important to understand that looking at homes online versus in person is a completely different experience. For new construction, this article rings true because chances are the pictures you're looking at are of a home that hasn't even been built yet! IN THE SPOTLIGHT
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You want to find the very best builders BEFORE you go out shopping for homes. Researching the best new home builders and new home communities in the area is not the most fun but it's super important It's a lot easier than you think too. We recommend you start with a google search for 'best new construction builders in your area' or 'top new communities in your area'. The time and effort your spend researching the best new construction homes will pay off in the end! Look online for reviews, testimonials and any news you can find on each development you’re interested in. If you can connect with current residents online, through social media, you will have great informational resources to make an educated decision. Plus you want to learn about your potential neighbors as well! Don’t be afraid to ask the builder a lot of questions (there’s a good chance he is going to have a lot for you as well). One good question to ask is ‘what are the future plans for the new development?’ You and your Realtor® will put a list together of the top new communities, and the top new homes that you want to see.
REDLIUB RUOY HCRAESER
New home builders are facing their own special challenges during the pandemic With labor issues and material shortages and delays they cannot build fast enough to keep up with the consumer demand This can give you challenges when negotiating the best deal with your builder. That’s why it’s so important for you to ensure you’re working with a local real estate agent. They will make sure your new home is the best deal possible.
Then it’s time to go house hunting.
AMYPRICEDIXON.KW.COM |
THAT DOESN'T LOOK
ANYTHING LIKE THE MODEL HOME Typically the model home you will walk through is full of all the upgrades and amenities available, they are selling the dream! It’s important to understand what your home will come with and what it won't. Again, make sure everything is In writing.
INSPECTIONS & WARRANTIES Do I need a Home Inspection for a New Home?
What's Covered In A New Construction Home Warranty?
Yes. People make mistakes and it’s possible a mistake was made in building your new construction home. Inspectors can find many things the builder may have forgotten to do, or even potential problems that could be caused down the road. A home inspection is someone who is coming in to review the work done on your home, you’ll want to make sure they give you feedback.You are making a large financial purchase after all.
Typically builders will have a home warranty they can give you however it’s not uncommon for a builder to have a third party involved in a home warranty.Coverage for new construction real estate varies from builder to builder. You’ll want to ensure you have a proper understanding of what is covered by the builder or other companies that were involved in the creation of your new home. Sometimes you can negotiate the warranty in to the deal or add provisions to cover things the warranty may not normally cover.A final walkthrough is necessary before you complete the purchase, so make sure it's something you plan for, prior to closing on your new home.
AMYPRICEDIXON.KW.COM
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NEW CONSTRUCTION FINANCING
FINANCING When shopping for a new home, visions of gorgeous kitchens, sumptuous master baths and closet space galore may dance in your head, but you can’t forget the important step of financing. As you shop for your dream home, key questions to ask yourself very early in your search include: Are my credit reports up-to-date and accurate? What information will I need to gather to apply to finance my new home? What can I afford in the way of a mortgage? What are my loan options? Where do I learn more about, and ultimately shop for, a mortgage? In many respects, financing a new home is much like getting a mortgage to purchase a resale home — but there’s an important difference. In addition to shopping around for rates and terms from banks, mortgage companies, brokers, and online lenders, builders of newly-built homes may offer attractive financing packages, either directly through their own mortgage subsidiary or via an affiliate. In addition to builder financing, there are some unique tools that apply to new homes (but not to resale homes) that include bridge loans and new-construction financing. These can be used to fund the purchase and construction of a new home before the sale of your current home.
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NEW CONSTRUCTION PAPERWORK
NEW CONSTRUCTION PAPERWORK A new construction purchase and sale agreement or sales contract is similar to a resale contract but applies to a newly built home. Most builders have their specific forms They contain information such as the project's estimated closing date, the terms of the contract, who will be responsible for which expenses, and other obligations for the builder and buyer. What to Look for in a Purchase and Sale Agreement New construction purchase and sale agreements protect the builder by making sure that individual will be paid for his or her work, while also protecting the buyer against the home being sold to someone else. In addition, there are several things in the contract you should look for: The date by which you need to finalize your design requests. The date by which you need to have financing approved The price you will pay. The location where the property will be built. The deposit amount, also known as earnest money. Under a new build contract, you might have 30 to 45 days to back out of the agreement as a buyer if you have problems securing a loan. However, the builder will often attach penalties to this, such as withholding a portion of your deposit. If your loan falls through later in the building process, the builder will generally keep your earnest money.
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CONSTRUCTION PROCESS
Prepare Construction Site and Pour Foundation Apply for and Acquire Permits Construction Crew Levels Site Put Up Wooden Forms for the Temporary Foundation Footings Are Installed Inspection #1 Complete Rough Framing floors system walls and windows roof sheathing and wrap to exterior walls Complete rough plumbing, electrical, HVAC Inspections #2,#3, #4 Install Insulation Complete Drywall & Interior Fixtures Start exterior finishes drywall hung and textured Initial paint completed Finish Interior Trim, exterior concrete doors, window sills and decorative trim Installed cabinets, vanities and fireplace mantles Installed Install hard surface flooring, countertops; Complete exterior grading Finish mechanical trims, Install bathroom fixtures Install mirrors, shower doors, finish flooring, landscaping Inspection #5 final walk through closing
This is a general timeline for construction processes, your builder/state steps may vary |12
WHAT TO EXPECT ON YOUR FINAL WALK-THRU You’ve picked out all your fixtures and finishes. You’ve selected your flooring and paint colors. Now the new house you’ve been waiting for is ready! Finally, you can sign your closing paperwork and move in. Sure, there’s a final walkthrough, but with a brand new home, that’s just a formality — right? Hold on a second!! Even though it might be tempting to rush through the final walkthrough in your newly-built home, there are actually some really important things that you need to check out. Don’t assume that just because everything is clean and shiny that all is well. Finalizing the purchase of any home — even a brand-new home — requires keen attention to detail. As your agent I bring 25 years of construction experience to the table and have a comprehensive list of Items to look for In new-build walkthroughs. I highly recommend having your own home inspector coming at this time to inspect the home. However, the cosmetic details are up to you. We will take our time and examine the items carefully during your new construction walkthrough.
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THANKS FOR READING!
I hope you have a better understanding of how new construction works and whether Its a good fit for you.
If
you have questions please feel free to reach out! Anytime!
~ Amy
VISIT HERE TO FIND ME! HTTP://LINKTR.EE/AMYPRICEDIXON