Frequently Asked Questions
So, you're considering building your dream home or buying an existing newly constructed home. What's next? Find an agent. To assist you with finding the agent to partner with, here are some questions and answers to know concerning the process of buying a new construction home!
Frequently Asked New Construction Questions
Does the builder provide a warranty?
In most instances the builder will provide a one year warranty on the construction of the home. This warranty is like a car warranty that is bumper to bumper. The home may settle a little in the coming year, so the builder often asks that if you get some minor cracks or nail pops in the drywall or plaster that you wait for 10 or 11 months and have the builder return before the warranty expires.
What is the dollar per square foot cost to build a new home?
There is no exact price per square foot. There are so many variables that affect the price per square foot (i.e. floor coverings, fixtures, cabinets, 2 x 4 vs. 2 x 6, cathedral or tray ceilings, number of baths, price of the lot, etc.). It does typically cost more to build a ranch than a 2 story for the same square footage because there is more foundation and roofing with the wider floor plan.
Is the price negotiable?
The price is negotiable unless the house is a presold. When doing a presold, the builder will price the home according to the bids he gets from the subcontractors. If, at that time, the price is a little higher than you thought, we can work with the builder to find ways of cutting costs to get the price where you thought it would be. You may be able to add some options down the road or visit with your loan officer to see if doing all your upgrading while the house is being built is worth the monthly payment as opposed to paying for some of your upgrades out of pocket later. It can be very beneficial and affordable to do the upgrades at the time the home is being built, especially with the current interest rates. Also, the options or upgrades will likely be more expensive if you wait a couple of years instead of doing them now.
How long will it take to build a home?
The length of time it takes to build a home depends on the size of the home and the time of year that the construction starts. Many factors play a role on the estimated time of completion, and some of these factors are beyond our control. These factors can include availability of materials, the buyer's decisions, making timelines, and the weather, to name a few.
What lots do you have available?
Lot availability depends on the price range that you are looking to stay within. Lot price can be a very large factor in the final price of the home and location can also be a large factor in the price of the home. Different subdivisions may require square footage requirements for different styles of homes. This will dictate the entry level of a home in that subdivision.
What is the best time of year to start building a new home?
You can start a home any time of year even the dead of winter. As long as the temp is 16 degrees and rising the concrete doesn't need any additives. Spring may be the least desirable time because of spring showers. Rain can put construction behind faster than any other element.
Who carries the construction loan?
In most areas, the builder carries the construction loan.
Can we visit the construction site any time? Can we visit without our REALTOR®?
Depending on the builder, most builders do not have an objection. Some builders like your real estate agent to be present with you on the site.
When will my property taxes go up?
It depends on when the house construction was started and when it's completed. You should start seeing full taxation within a year and a half after completion of the home.
What differentiates some builders from others?
This is a difficult question because each builder has their own unique style. The attention to detail and the process of building your home is important as well as the quality of tradesmen the builder uses. Make sure the builder designs and builds your home to fit your lifestyle and your budget.Back to Top