Is purchasing new home construction from a new home builder a good fit for you and your family? My name is Patrick Dewlen, and I am a realtor at RE/MAX Cinco Ranch. I grew up in the great city of Katy, and Katy is a great place to call home! Let us get to the big question. Would you and your family like to purchase a resell home or new construction home? I worked for two of the leading home builders in the United States for approximately eight years. Both companies built an outstanding product, and provided my client’s /friends with a good warranty program and excellent customer service. I could wake up every morning proud of the homes my client’s / friends purchased. Now with that being said, there were several things I learned about new construction over the years, and I wanted to pass along some information to you the consumer. The first step in any real estate transaction is to find the right realtor for you and your family. The first blog will contain information about the pro’s and con’s about purchasing new construction.
Would you like a home that no one has ever lived in? Nothing is better than being the first person to live in their newly constructed home. Everything is shiny and new. The new home smell always caught my attention as well.
Would you like to pick your street and the lot of your future home? Do you want a home facing East or West? Would you like a cul de sac or a large oversized lot? Would you like to pick out the brick, upgrades, and flooring? I will go into further details about this in a future blog, or you can contact me.
Would you like the latest or the best selling floor plans? Most floor plans today tend to have a more open concept especially with the kitchen overlooking the family room. Resell homes built in the 60’s, 70’s, 80’s, 90’s tend to have each room sectioned off in each area of the home. Would you like to take on the project of remodeling a resell home to meet your needs or wants?
New home warranty should be a positive, if you purchase from a good new home builder. I worked for two home building companies that stood behind their product / homes. Do your research!
Do you want the latest energy efficiency on you home? The new home builders can build homes that meet the highest standards for energy efficiency, combustion safety, comfort and durability—ensuring your dream home is also a sound investment. Each builder will be able to discuss the energy efficiency products in the new home. Several builders will be signed up with certain programs like Energy Star and Environments for living. A resell home without updated energy products can have higher utility bills.
New home builders often times have incentives for the buyer to purchase a newly constructed home or to build a newly constructed home. The builder can give a price reduction, offer free upgrades (tile, granite, washer, dryer, or a refrigerator) or assist with closing costs. The leading builders can advertise big selling events with several of these incentives combined. Remember some of the new home builders are on the stock exchange. They have projections to meet to satisfy the stock holders. They will cut prices like any industry to move the product (homes), and start more newly constructed homes. Getting a great deal on a newly constructed home is a great feeling. The new home builders often times own a mortgage company and title company as well. They can offer to pay closing costs and owners title policy, if you choose to use their lender. We will discuss this more in detail on another blog about incentives and negotiating with a new home builder.
Location, Location, Location – One of the first rules I learned in real estate is how location determines the price. People tend to like to be close to work, schools, church and family and friends. Do you like having the modern conveniences of super markets, retail stores, and restaurants in a close proximity? New home construction often times will be in communities that have not been fully developed yet. Schools are proposed to be built, and super markets will be coming soon. Can you and your family be patient with the growth of the community?
Mature trees are more prevalent in established neighborhoods. The landscape and trees provided by the builders will not compete with the amazing blessings of mature trees in established neighborhoods.
New home builders can be more expensive than a resell home. The cost of building a home goes up every year, and the home prices seem to be right in line with the data.
New home construction can be messy and noisy. The builder will probably be building new homes next door, across the street, and behind your home. You could be hearing a saw or hammering early in the morning. The builders should be pretty good about cleaning the street and the area around the new homes being constructed. I had several tires repaired, because of slow leaks from nails. Discount tire was very good to me over the years. Remember to always check to see what is going to be built around your home. Is there commercial property behind your home?
How long are going to live in the newly constructed home? Find out from the new home builder about how long they project to finish the community? It can be very hard to compete against a new home builder when you are trying to list / sell your home on the market. Remember the pro’s section about builder’s incentives and margins.
Please click on the links below for newly constructed homes in the Katy area.
I hope the information about the pro’s and con’s of purchasing from a new home builder was helpful. I will be breaking down several parts of the new home process in future blogs. Please contact me with any questions, and have a wonderful day!
RE/MAX Cinco Ranch