When you are deciding on your next home, many home buyers find huge appeal with starting over and building their dream home. While building a home is exciting, it can be an overwhelming process if it is your first time.
Is building a new home for you? Should you stick with existing homes? Here are a few things to consider before you make your final decision.
New Builds Aren’t Usually Listed On the MLS
Shopping for a newly built home is not the same as shopping for existing homes. Most of the time new building sites and homes won’t be listed on the MLS.
So how do you find builders?
There’s usually a model home in the area with a knowledgeable salesperson available for all of your questions. You may also want to watch for online ads, signs posted locally, or search local builders and track down their website for more information.
Being First In Line For A New Build May Be An Advantage
Often, the first homebuyers in a new community benefit from early incentives. The builder is trying to drive interest and bring in more business which gives you an opportunity to negotiate price. Builders often want to have a certain amount of builds under way so they can report good news to their lenders.
Being Late To The Game Isn’t Bad Either
As a builder nears the end of selling the lots available, sometimes the builder is more willing to negotiate upgrades. Tacking on a few thousand dollars in upgrades won’t be tracked after the sale is final, but the sales price will be public record. The builder likely won’t budge on the price, but you may find yourself with some beautifully upgraded kitchen cabinets.
New Homes Are Often Sold Before They Are Built
If you are hoping to walk into your brand new home immediately, you may need to reconsider building. Often, the builder will sell lots and floor plans of a home that doesn’t exist quite yet. The builder will typically have a model home available for you to walk through so you can get an idea of what the final build could look like.
If you determine that building is right for you, you’ll want to be prepared to put down a deposit to get started. It could be anywhere from a few thousand dollars to 10 percent of the final price.
Also be aware that many builders don’t release all possible lots for sale at the beginning of building a new community. Most release only a few at a time. If the community has 100 total lots, it is common for a builder to only sell 5 or 10 lots at a time. As the phases sell, if the market is right, the builder may raise prices for future phases. It’s often a benefit to be one of the first in the community.
It’s a Numbers Game
As opposed to buying an existing home where you might run into issues with the seller, a builder is only doing their job. Their job is to build homes and sell them, so no need to worry about issues like homeowners who have a lot of sentimental value wrapped up in the home, or losing out to another buyer.
You can feel confident that once the process is started, the home you are building will be yours.
There are many pros and cons to building a home. For the best outcome, hiring a realtor is in your best interest. A real estate agent will help you navigate all the complexities of building a home and it’s always a plus to have someone on your side.