Is New Construction Right for You?

Deciding on New Construction

I LOVE helping my clients build their dream home from the ground up. However, it’s important to make sure that building your home rather than buying an existing one is the right choice for you.⁣ ⁣ So, here are some questions I recommend asking yourself: ⁣

1) How soon do you need to move into a new home?⁣ If your answer is “ASAP!”, new construction may not be a great option for you. New construction can take anywhere from 3-12 months to complete, or more depending on the project. ⁣If your answer is that you’re flexible with time – it could be a good option.

2) Do you like to work on home projects and do-it-yourself?⁣ If your answer is “no way!”, new construction may be a good fit. With everything brand new, all of your customizations chosen, and a home warranty you won’t need to do any fixing up for a while.⁣ If you love a good DIY project, you won’t have much to repair or change once the home is built – so keep that in mind.

3) Are you looking for something specific?⁣ If your answer is yes, new construction could be a great option. You’d be able to build something that fits your needs and desires. Plus, if you can find land in your desired location, your dream home awaits!⁣ If you love something that already exists, maybe continue searching for a pre-owned home.

I have a pros and cons list in my New Construction Guide that’s available to download at the end.

Choosing Your Builder

There are three types of new construction: spec (short for speculation) homes, tract (or production) homes, and custom homes.

Spec Homes: Homes “built on spec” means the builder has purchased a single lot and built a home on it not knowing who will purchase the home. Typically, the builder will list the home with a real estate agent to market and sell. Since the home is usually finished, or almost finished, when it goes on the market, the buyer does not have the opportunity to make changes in features.

Tract Homes: Tract homes are homes built in a development where all the homes are built around the same time, or in phases, by the same builder. The builder has selected floor plans and uses the same features in each model. Often buyers can purchase a tract home prior to completion, in which case they may be able to make changes in the features within the builder’s budget or for an upgrade fee.

Custom Homes: When the buyer purchases their land and then contracts a builder to build a home of their choosing, they are building a custom home. The buyer chooses their floor plan, or has an architect draw one for them, and chooses all of the features, sometimes with assistance from the builder or an interior designer.

Here are some things you need to consider on choosing the neighborhood or development where you build include: · Who is the builder(s) for a planned development? · What are the builder’s deed restrictions, and how many years are those in effect? · Is there, or will there be, an HOA? · Are there, or will there be any community amenities? If you are looking at a planned development, find out if there is one builder or if the developer allows you to bring in your own builder. If you are looking at building on a lot that is not restricted to a particular builder, it’s important to research builders in your area to find one that is reputable and stands by their work. Unfortunately, some builders fail to deliver on their promises, cutting corners on materials, or even failing to finish certain details. Meet with different builders before you make your selection. It’s important that they are organized and communicate well. Make sure the builder has someone that is communicating with you through every step of the build so you know when your choices must be made and when each phase will be completed.

Find out if there are any complaints registered against them and ask for references from other homeowners. Find out if you can tour a model or a recently completed home and bring someone who can judge the quality of the workmanship. In my New Construction Guide I’ve compiled a list of questions to ask your potential builders before hiring them!

Selecting Your Options

Once you’ve selected your builder, you will submit a pre-approval or proof of funds from the bank and a sign a contract with them. I will help you review the contract and make sure you get the best deal possible.

Next, the real fun begins: you’ll start selecting your options. If you’re doing a custom build you will have to select everything. For a planned development, there is not as much flexibility as you usually have different option levels to choose from. Some examples of your choices could be: The color schemes, flooring, cabinetry, light fixtures, door and window hardware, countertops, tile, etc.

There will be a lot of decisions to be made throughout your build. Being prepared with your choices at each stage will help keep the build on schedule. Most builders have someone who will work with you to let you know what stage they are on and which decisions are coming due and when they need to be made. It’s important to know what rooms and features are your priority. It could be helpful to make a needs vs. wants list for this, or to fill out the chart on my New Construction Guide.

Prepare to Close

As the closing day starts getting closer on your new construction home, you’re going to need to schedule multiple walkthroughs. You will need to check on every phase of construction to double-check that everything is done according to plan. Even the best builders have miscommunications, mix-ups on orders, or problems with installations. Plan on visiting the home daily once it gets dried-in.

Another thing to consider is getting an inspection. Even though your home is brand-new, you might still want to have a home inspection done. Sometimes an inspector will catch something that slipped past the contractor and code enforcement.

And lastly, let’s talk about closing day. Closing day on new construction differs slightly from a pre-owned home in that there is often a “punch list” of items the builder is responsible for finishing up either on closing day or shortly afterwards. This may include cleaning, touch-up painting, installing landscaping, or changing out locks.

You should have the opportunity to go through the house with the builder shortly before closing to add items you notice to the punch list. Don’t forget that one of the great things about new construction is that you typically get a home warranty, which usually covers all of the major structural items and mechanical systems. Appliances are typically not covered in this warranty, but they should come with a manufacturer’s warranty.

Damage from weather, shrinkage or expansion of the home or foundation, and anything resulting from the homeowner’s failure to provide maintenance or from work done on the home after construction is not covered. So once you close, you don’t have to worry about being left on your own if anything goes wrong.

Thank you so much for visiting my blog! If you have any questions please reach out to me directly, you can call, text, or email me!

Download my New Construction Guide here.