Sometimes the idea of buying something used is just not appealing. People feel that way about clothes, movies, cars and people can feel that way about homes too. Whether it’s because you don’t like the idea of putting your bare feet on the carpet that’s been walked on all over by strangers or just because you simply want a smell of a brand new house, there’s always the option available of building a house. If you chose to build a house instead, you can custom build it exactly the way you want it that will work perfect for you and your family.
The process of building a house isn’t too much more complicated than buying a “used” home, but there are a few things to consider before making the commitment. If you follow these suggestions, your time spent building a house will be smooth sailing.
Before Building A House – Hire a Real Estate Agent
First off, not all of us a re real estate experts and you should take some time to cover your bases with a real estate agent prior to building a house. Remember that builders will represent their interests first before yours so have someone there for you to make sure things go as planned. When it comes to purchase agreements, a real estate agent can help you check to make sure that there’s adequate coverage included that gives you some protection from any contingencies or unexpected developments in the transaction. You’ll want to know everything about what you’re signing, including the responsibilities for which you’ll be liable. Also, be sure to look at your rights if you should want to cancel the deal provided something does not meet your wishes or goes completely out of scope.
Hiring your own agent can save you from a lot of unnecessary hassle and can help prevent the builder from squeezing a few extra dimes out of you when building a house. When builders suggest using their own sales agents, the bottom line is that they’re wanting you to have an agent who is ultimately there to look after the builder, not you. Their top priority is to get top dollar for the builder. They may employ high-pressure tactics to try to get a pen in your hand and a contract for you to sign. Having your own agent means that they’ll give you the good news with the bad. Anything wrong or even possibly wrong with the house or the transaction has to be disclosed to the buyer. If you go with the builder’s agent, the downsides to the home in all likelihood won’t be brought to your immediate attention, causing you headaches down the line.
Looking For Land For Sale
Looking for the right lot can be difficult and can get old very quick which can make you decide not to build a house, after all why build if you can’t find perfect spot? Building a house in the cities will be more expensive because there are less lots available and prime locations have a high price tag attached to them. Decide on the location, and start looking for land for sale that will work with your home floor plans.
Do Your Homework and Research Your Builder
Builders come in all different shapes and sizes. Be sure to do your homework about a builder that you are going to work with before building a house not after. When someone had bad luck with a particular builder, it’s very easy for people to spread the word out, especially today with social media and power of internet. A lot of buyers fail to even do a simple Google search to see if there are any reviews out there. If a builder has done multiple homes in a particular area, take some time to investigate. Before you build a house, you can knock on a few doors, or make a few phone calls, to try and find out the most you can about how well the homes that were built are holding up. Do people have any complaints? Look for yourself at the homes and see if you notice anything that stands out that might concern you.
Beware of Upgrades and Allowances
Building a house can get costly if you don’t plan ahead of time. Think about any optional upgrades you’d like to have for your house. It’s important to remember that builders do make a great deal of profit from the upgrades you choose, so make sure you know market price for appliances, tile, and granite. Sometimes going with a basic construction house can save you a good deal of money. If there are after-construction additions or changes you can make on your own or through a cheaper third-party, then you may want to consider using them to save you some money. Also, be sure to check whether all of the upgrades you choose are covered by your lender. If they’re not, those will have to come from out-of-pocket cash. Also, be sure to submit your requests in time. Some builder contracts give them the authority to select upgrades for you if your requests are not returned in time. You want to make sure you get the brand new home you want not the one that builder decided to build!
Consider Sweat Equity
Are you handy? If so, see what you can do yourself. Go through the list of all the allowances and how much each allowance is and see if there is any work that you would be willing to do yourself like painting for example. You can pay yourself to paint your house instead of the builder. It might take you a weekend of painting and might save you thousands depending on the size of the house.
Check Cost of Materials
Nobody wants to overpay for materials. Your are paying builder a fee for building a house, not a spread on the tile or carpet. Its the worst feeling ever when you find out that a builder went to a local Menards or Home Depot, bought the materials and re-sold them to you for a hire price. Ask the builder where the materials are coming from and do some price checking. Don’t be naive, investigate to make sure you are not over paying and keep your builder accountable.
Find Out What Builders Fee Is
Be curious and negotiate. Don’t just take a bid from a builder and sign the paperwork. Find out what his fee is for building a house and see if you can negotiate it. A good real estate agent can help you with that.
Chose a Good Lender
In choosing a lender, you should make an informed decision about who you’d like giving you the money for your new home. It might seem convenient that a builder has a lender lined up to help you out, but blindly going down that route can get you a less-than-ideal arrangement in your financing. You might be able to find a better deal somewhere else, which, if the builder has an arrangement with the lender or even owns them, they probably won’t give you. Make sure to check with your agent, local banks or credit unions to see if they offer competitive lending rates for home buyers.
Hire a Home Inspector
When your brand new home is finished, be sure to get an accredited home inspector to take a tour of the house and ensure that everything is up to local codes and meets all the requirements. Be present when they do it, and ask questions about anything you’re unsure about. Builders are entirely capable of making mistakes, and your home inspection is the best time to discover anything that needs addressing it so that you don’t have to deal with it when you’re moved in.