7 Things To Consider When Building A New Home
With the flurry of new construction in Sarasota and Lakewood Ranch you have a great opportunity to build your dream home. We compiled this quick list of tips to ensure you are confident in your decision!
1. Have someone on your side- There are a lot of buyers who will purchase a home without representation. You need someone in your corner who represents you and your best interests. Most builders have agents who are great at what they do... but in the end represent the builder and whats best for the builder. Bringing in an experienced real estate agent can save you time and money when building your new home.
2. Research the builder- Do your homework, builders come in various shapes and sizes. Does your builder have a track record of quality in the community? How are there online reviews? Where else have they built homes? Knowing these things can save you headaches in the years to come.
3. Go see what a spec home looks like- The builder builds model homes for one reason, to showcase there skills and show you what there home can be when its done to the 9's. Some people will fall in love with the model home and sign without ever seeing a spec home. You have to remember the builder put a ton of extra time and money into this home to make it a real showcase. When you build all of those things will be extra, so you need to go check out a home that is plain with tan tile and carpet to see if it's really what you like.
4. What are the current incentives- Builders sell a product, so they usually have an enticing offer to help move there product. Make sure you ask what the current incentive programs are, you will want to know the breakdown of those incentives as well. A builder may offer free upgrades, cover closing costs, have discounted lots. You will really have to compare and contrast the different incentives to see which one works best in your individual case.
5. Ask to see the inventory homes- People can be impatient, to counter that the builder will usually have a few homes already built. These homes will come with the basic standard features and a small list of upgrades that they feel will help the home sell. If these homes have been sitting for a long time though they can offer a substantial savings over a new build.
6. What are the upfront costs- Since builders come in all shapes and sizes so do there bank accounts. Some of the larger national builders will only require a 5 to 10% deposit to begin construction on your new home. You will then take out a traditional mortgage when the home is finished. The smaller builders and usually custom builders as well will require a construction loan. This will usually require you to purchase the land first and then take out the construction loan. A construction loan will work on a draw system, every 6 to 8 weeks the builder will request a draw to move further in the construction process. Speak with you agent to figure out what will work best for your scenario.
7. Can you buy the model home- Builders will eventually have to sell there model homes. Some builders will do this right away however and you can usually get a great deal on a home with all of the bells and whistles. If the builder is willing to sell you there model home they will probably ask for a "leaseback". A leaseback is when the builder will sell you the home and then continue to use it as there model home while paying you a monthly rent. This can be a great thing if you are not planning on moving for a while.
