If you are going the route of building a home instead of purchasing a resale property, there are three things you need to keep in mind.
- Timing your move. When you buy a new construction home, your move will not be the simple 30-day or 90-day closing process you would find with resale homes. The process of building a new construction home can take between four and seven months, and sometimes even longer. So, if you’ve got a specific time frame in mind for your move, be sure to account for the time construction will take.
- Financing. There are different financing packages between resale and new construction purchases. Sometimes, new construction loans come with a slightly higher interest rate as well as a few more fees. There are bundle loans available where there is a single settlement, much like you would find with a resale purchase. But oftentimes in new construction loans, there are two settlements: one on the land and one on the total package once construction is complete. My team and I would be happy to partner you with a lender who can help.
“Whatever you choose, make sure it is right for you.”
- The construction process. This is what I find most people really struggle with. When you’re looking at building a home, there are two ways you can go about it. You can work with a full custom contractor, which will allow you to control and customize every aspect of the home, or you can work with a volume builder. Volume builders have a set number of home plans that they work with. You can choose between these plans, but you will have limited control over customization. Outside of customization, the main difference between these two options is time. With a full custom home, you have to go to vendors and pick out everything. This can be extremely time-consuming, and the longer you wait on decisions, the longer construction can be set back. Working with a volume builder will generally expedite the process. Whatever you choose, make sure it is right for you.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.