Having been raised in a real estate family and working in Real Estate for the the last 20 years - 12 of those years in Tulsa. I have to admit there is nothing like the new home smell. I love New Construction. I love it enough to have built my first house in Jenks at the age of 26 and survived and loved the process.
I, like every buyer building a home went to the site everyday to watch the process and changed my mind about 200 times as we worked through the construction phases - slab, frame, sheetrock, finishes and paint. I ended up spending about $20k more than when I had started. Oops...
Closing day was the happiest day of my life up until that point. I built and now owned a new house, no one had ever lived there before. I picked out everything in it and to me it was perfect, but there were a few things I considered when building that later, when it came time to sell, saved me from wasted time and worse, wasted money.
A Few Things To Consider:
I figured there must be other important things to consider so I spoke to the Sales Manager for Rausch Coleman, Kyle Richison about what a buyer should know when building and he shared this incredible list.
What a Buyer Should Know When Building:
- How long has the builder been in business? Reputation is important so the longer the builder has been in business the better.
- How many lots are in the neighborhood and how many lots have sold? This is an indication of the success of the neighborhood and eventually its total size.
- Does the builder have a preferred lender? You can use which ever lender you like but a preferred lender will often have incentives available when working with the builder. Plus they know their processes and can be of great help and reassurance and may better be able to overcome any obstacles that come up.
- What incentives does the builder offer? Often times builders have incentives on finishes, financing options and even closing costs.
- What is the average home price in the community? Know the range of prices of homes in the neighborhood so that you stay competitive when having to sell.
- What is the average size home in the community? You want to avoid being the largest and most expensive to stay competitive when having to sell.
- What is the average amount of options added above the base price in the community? Every builder is different and you want to check and make sure you're getting the most for your money depending on what is important to you. Finishes or the cost of the home itself. You as the buyer might want to do counter tops or different flooring after closing.
- What kind of warranty is offered? All builders by law offer a warranty - knowing what is covered and for how long could save you a lot of money in the long run.
- Covenants and Restrictions? This is what you can and can not do in your neighborhood. Examples of covenants include the type of roof material, color of roof shingle, or if you can have a shed in your yard. Another example is what you can have parked, and where, such as an RV on your property. (I know you have vision of the Griswold's family Christmas running through your mind.) The Covenants also cover the use of any amenities available to the homeowners like neighborhood pools, splash pads, parks and trails.
- HOA DUES? This is the fee charged to homeowners to maintain common or shared areas and amenities such as pools and splash pads or park equipment and lawn service.
- Energy Efficiency? This is the type of insulation blown in or sprayed in (it is graded), the types of windows, doors and even light fixtures installed in the home to save you money on living in the home. A small investment up front will lower the cost of all utilities during your time in your home.