Buying New Construction

There are many choices a buyer has when searching through the many homes for sale. Depending on your personal list of “must haves” in any home, and after defining what is worth your consideration, your Realtor may suggest that you look at options for new construction. Sometimes building a home to meet your needs and desires can be the best way to meet everything on your “must have” list.

Your Realtor can provide you a list of new construction homes for sale, which means that the homes are already or nearly completed, typically listed by the builder or developer of the property. Then there are listings of “to-be-built” homes that typically require you working with a specific new home builder who owns the parcel or parcels of land being developed or perhaps is contracted by the developer.

The price range of these new construction options can range to fit a variety of budgets and can include listings for economical modular homes all the way up to the best of the best in luxury homes for sale. Typically if your home will be part of a development of new homes, there is already a plan in place that dictates what will be a general range of home size and value that the builder will adhere to. This means that a luxury home development will probably not allow for a buyer who wants to build a small, modest ranch-style home. In the same respect, you probably don't want to build an expansive luxury home in a development of smaller, modular construction homes.

What to consider when deciding to build

• Location, neighborhood, and style: Your real estate agent will guide you to the options you have in choosing either land for sale (where you then will find a builder who will best complete your project), or you will be shown some to-be-built listings-either on a separate parcel of land that a builder is trying to develop or within a planned neighborhood development or cul-de-sac. You will also need to choose the style of home and general square footage of the home you wish to build.
• The cost of the new home: Typically, if a builder has a general plan to build, for example, a 2,000 square foot colonial on the lot, for $265,000 you can then sit down with him and modify the plans, within reason, to best fit what you wish to build. It might be adding a garage or a great room (for added cost) or it might be scaling it down to 1,500 square feet of space (to trim the budget). This is where you narrow down exactly what you are looking for and learn what the builder is willing to do and what it will cost you.
• The details have a cost too: Your builder probably has listed the to-be-built at a certain price or price range; depending on the buyer’s choices. They usually have a list of what comes standard with this construction plan and price tag. This may mean Formica counter tops, while you want granite throughout. So this is where it is important to know what you want, go over these details with the builder, and get the final quote to include any and all upgrades.
• Obtaining the financing for new construction. As with any loan, it requires lots of documentation of your earnings, credit status, and the design plans of the home and building costs. Sometimes a buyer must revise their original plans with the builder in order to get lender approval. Patience and flexibility are helpful throughout the loan process.
• Finally it is on to construction: This may be the most rewarding period as you see your dreams being brought to reality. Changes in design or product choices should be kept to a minimum for the consideration of time, cost, and everyone’s sanity. But in the end you will get the keys to exactly what you pictured in your new home.