3 Things You Need to Know About Building a Home
January 24th, 2008 categories: Real Estate Buying, Relocation
Trying to make a major home buying decision? Do you buy a used home or build a new home?
You have been house hunting for awhile and the thought of moving into a “used home” is turning you off? Your house hunting efforts may have turned to new construction. There is something so intriguing about being the first to live
in a home- it’s new, it’s clean and hopefully, all the colors match your furnishings.
Whether you are building a multi million dollar palace or contracting to build in a local subdivision, there are 3 things you need to know:
1. Know your builder
2. Know if your personality is suited to building
3. Know your budget
Check out the builder, don’t hesitate to ask for references, check with the Better Business Bureau and drive around the neighborhood and talk to the neighbors. Many (but not all) require substantial down-payments and you need to do your research prior to signing on the dotted line. You are probably wondering why I would even suggest “due diligence” since it is so obvious-yet you would be amazed at how many buyers sign first and discover problems later.
Is you builder a member of the Home Builders Association? If yes, they have agreed to abide to a set of industry standards for construction and repairs.
Not everybody is suited to building a new home. Delays, construction issues, changing plans as the home progresses, cabinets not quite the shade you ordered often leaves some buyers regretting they ever began the project. On the other hand, if you can handle a moment or two (or three or four)of stress, building a home can be worth the effort. We have built twice and I would build again in a heartbeat. (and yes we did encounter some stressful moments)
Budgeting is critical, even if you have signed to build a home in a subdivision. The normal buyer is usually not happy with the either the light fixtures, the carpet or the appliances. These add-ons can significantly increase the final cost. Take a close look at the fixtures, carpet/padding, appliances, furnace capacity and so on. Make sure you spend your building dollars on items that are very expensive to upgrade later. You can always upgrade carpet or light fixtures after a few years, it is much more difficult to add a few feet to the family room or additional space to the garage.
Using common sense, doing your research and having patience are all part of building a new home. If you have some questions or concerns, give me a call or send an email.
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Hello Kathy,
Great Blog on New Construction. Budgeting certainly is critical and checking the Sub division restrictions is also a great thing to do. Keep up the great Blog.
David