Steps to Consider when Building a New Home
Have you decided that you would prefer to build your dream home rather than buy a preexisting home? It is quite tempting to many buyers because when building you are not getting a home that has been “used” and everything can be designed by you! Below are steps that you should consider when looking into buying a new home construction.
1. Consider Hiring an Agent: Did you know that a Real Estate Agent can help you in this process like they assist in buying existing homes? They most definitely can, and you don’t need to be concerned about having to pay the Realtor! Taking this step doesn’t affect the bottom line that you’re paying for – the builders will not charge you more for the home if you use an agent to represent you. The commission a Realtor gets comes out of a separate pot of money that the builder (in this case the seller) has set aside for Realtors. There are many advantages to hiring a Realtor, but one of the most important is that they can advocate and stand up for you throughout the entire process. When you don’t work with a Realtor, you are letting the builder’s agent represent you, and they don’t always have your best interest in mind. Realtors can help you with many aspects of the process to include negotiation, contracts, design, add ons/negotiation for customization, recommending financing, overseeing inspection, and more.
2. Shop Around for Financing: Builders have their own preferred mortgage companies that can help with financing that they typically recommend, but I highly suggest that you look at all your options before you settle on someone. Often times, builders offer incentives to use their company for financing, but you want to look at all your possibilities before you commit to make sure you are getting the best terms for your mortgage! Do the research, get multiple quotes, and make sure to look at everything, not just interest rates.
3. Find the Right Lot: If you don’t already own the land that you would like to build on, a Realtor can help you find the lot that you want in the area you would like to build. Once you begin to find lots you are interested in, you will want to contact the builder and make sure that the floor plan and design of the home you are choosing will be able to be built on that lot and still stay in your price range.
4. Plan and Design: This is the fun part of the new build process- you get to make the decisions on the floor plan, designs, flooring, outdoor space, and so on! Drive around the area you are looking to build, go into spec homes/open houses, and try to get a feel for what layout and aspects of a home you love! The professionals that you hire will be able to help you in this process as well!
5. Hire Professionals: There are many different professionals that you will want to consider hiring when building your new home. First and foremost, you want to make sure you choose the right builder and architect for you. Check out many different builders in the area that you want to be in and choose the right one for you. The architect will create the blueprints that fit your wants/needs. Even though the home is a new build, I highly recommend hiring an inspector. Inspection is important when buying new builds as well as existing homes because the builders subcontract out a lot of items and are not always there when things are being completed. There could be something missed that you may not notice without an inspection.
There are many items and steps to consider when deciding that you want to build a new home. As a Real Estate Agent, I would love to discuss these things with you and represent you in the new build process. Have questions? As always, I would love to set up an appointment to discuss! Please contact me at 317.691.1875 or melissaesmith1@yahoo.com
Happy Building!
Melissa Smith
