First and foremost, consider and decide if building a home is right for you and your family
If so, make sure you have the budget to cover all the expenses and any surprises, changes, or setbacks that may occur. You also want to weigh all options regarding construction and home features and whatever you decide, leave some wiggle room. Next, it is important to have a Good Thing Realty, real estate agent representing you when buying a new construction to help you ensure that you ask all the right questions. We will be with you every step of the way from the first meeting to the closing. Building a new construction home is much different than purchasing a resale. New construction homes are a great option, but there are a lot of homebuilders out there; the key is finding the right one. The way to find the right home builder is to ask the right questions.
What kind of builder incentives are offered?
Now that home buying has slowed down a bit, many builders are offering incentives in order to sell out their developments — like covering your closing costs, or offering deals on landscaping, for example.
What changes can you make to their house plans?
If being able to customize your home’s floor plan is a priority, it’s important to ask potential homebuilders if you can make changes to their house plans and, if so, what kind of changes.
How long until you can move into one of their properties?
Some home builders have properties ready (or almost ready) for move-in, while others are years away from having a property ready for you to settle into. Before you decide on a homebuilder, ask them how soon they would be able to have your home built.
Next you need to decide what you should look for in a construction loan.
Construction loans generally cover the land, plans, permits, fees, labor, materials, closing costs, and contingency reserves. Some lenders currently have custom rates tailored to the builder’s needs and enable new builders to get the funding they need. When construction is complete, the loan is either converted to a permanent mortgage or paid in full.
Here are a couple of options for construction loans:
- Construction only—requires buyers to be qualified, approved, and pay multiple closing costs. The buyer must pay off this loan when the building is complete.
- Renovation construction—covers the cost of significant renovations wrapped into the mortgage instead of financed after closing. This loan is based on home value after repairs and renovation.
You should have a good understanding of exactly what is included in the price you are given.
Don’t forget about landscaping and your lawn. It is easy to focus on the house itself, but the outside is just as important. Will the builder put down grass seed and straw? Is laying sod an option and how much more will it cost? Does this include the entire yard or only part of it? Just make sure you are clear on what is being included in your build and what additional items may need to be added so you do not miss anything.
As you can see, there are many important questions to ask when building a new house. Building a new home can be an exciting process or your worst nightmare, depending on the builder you choose. While these are the bigger questions that you need to ask, don’t forget the basic, small details that are very important as well:
- Outlet placement and number of outlets
- Door direction; which way should they open
- The width of hallways and entryways
- Window placement to take advantage of natural light
- Skylights
- Strategy for underground pipes and utilities
- Storage (always plan a little more than you need)
- Energy efficiency
Don’t forget about your exterior details and make sure to allow for:
- Outdoor outlets and spigots
- A deck to accommodate entertaining
- Outdoor lighting,( security lights and motion sensors)
- Walkways
- Grill and furniture placement
- Pool or hot tub areas
- Designated vegetable or flower gardens
Home builders understand that not everyone knows what it takes to build a home but that they’ll want to be involved and watch it unfold. It’s your home, so it makes sense for you to want to be engaged throughout the process. There really is no place like home when you build your dream home like you want it!