Planning to Buy a New Construction Home? Follow These Tips for Success
Building a new construction is no easy undertaking, but it can be a worthwhile venture when done right. There are many aspects to consider, from where the home will be built to who will be building it. It can seem overwhelming, but with a lot of forethought, planning, and a good team by the buyer's side, the process of a new home build can be eased and result in optimal satisfaction. Follow these essential steps to ensure the home construction process runs smoothly.
Find the Right Community with Lifestyle in Mind
If moving to a new community is a possibility or already decided, take time to research specific cities and communities. Break down each neighborhood option to determine whether a pre-fabricated home in a master-planned community meets the household's needs best or if a custom home feels right.
Should the home be in the city, suburbs, city outskirts, or downtown? Is a short commute to work or school important? Consider the proximity to frequented places such as grocers, parks, gyms, friends, dining, shopping, and other entertainments. Choose a location convenient and desirable to buy or build a dream home.
Evaluate Finances: How Much Home Is In the Budget?
The average buyer of a brand-new home will need a construction loan and a mortgage lender to assist with finances during and post-completion. It's essential to use a mortgage calculator online or consult with a broker to get an idea of what's affordable.
Visit with a bank or financial institution to discuss realistic options for getting a loan. Additional expenses beyond the construction itself will likely include costs associated with:
- Builders and contractors
- Land or lots
- Construction materials
- Site management
- Custom features
This is a great time to get pre-qualified for a loan if possible.
Select a Home Lot
A home needs a place to stand, and while finding a lot in a master-planned community might be simple, finding one more independent of neighborhoods might take more time and consideration. An excellent place to start with lot hunting is with a local real estate professional who has a good idea of land costs in the area. Agents can guide buyers to places that meet their needs, budget, and lifestyle. They can also help find experts to evaluate other potential issues such as zoning, soil condition, drainage, potential natural hazards, and meeting regional building codes.
Select the Perfect House Plan
There are many lovely new home construction plans already laid out, and these are often noticeable amid planned communities. Visiting these communities can give a buyer an idea of what's possible and whether they like it. Many builders can make changes to the existing plans for buyers or design a complete custom floor plan with architects and designers. Be sure to inquire with building experts and a real estate agent to ensure any plans you're considering are even possible according to codes and neighborhood restrictions.
Choose a Home Builder and an Experienced Team
All of the team members mentioned above to include in the budget will need to be narrowed down to final choices after financing, the lot, and a home plan is selected. Just like choosing a lot, it's essential to research before choosing a builder. Make sure to ask the builders any lingering questions, like if they offer a warranty program, and consider driving past homes they've built for reference. Some builders will hire their own team or can make recommendations to clients for top choices. Some buyers prefer to hire independently to have more control over the process rather than total builder control.
Remember, a local professional real estate professional guides buyers through the entire process and is a key ingredient to any successful build!