There are lots of points that you need to consider when making the decision to buy a resale or to work with an area builder. In this two part series we will uncover some of the most important things to be aware of. There are a lot of benefits to building, but those benefits can come with some sacrifices, some of which you may not have thought of yet. I am going to put together a "considerations" list that you can use in your decision making process. I will be restating the obvious (for the sake of being thorough - bare with me here) as well as digging into some situations that I have personally experienced when working with new home clients that will hopefully provide some valuable foresight (at the expense of some others' hindsight).
On to the list...
1. Time - Obviously everyone's situation is different so you need to consider how much of a factor time will be in your process. We all know the saying "Time is money" so this should be one of your very first considerations. Within the "time" slot on this list we will bring up 3 important factors with regards to time. The first consideration is how long it will take to build your house. Some builders can finish a house (or townhouse) in as little as 90 days. Other builders take up to 6 months or more to complete a home and if you opt-in for full custom home your build time could stretch to a year and beyond. The timing brings up other things to think about like where you will live while you are building and where and how to store all your furniture during the building process. The second consideration is how much time you have to devote to making decisions about how your house will be built. This could be as little as a couple of appointments to pick out your carpet and hardwood colors and possibly some interior options such as light fixture packages and counter-tops. On the flip side you could create another full time job for yourself by building a custom home and have to make every decision down to the door stops and selecting every single light fixture in the house (trust me - I know). The third consideration is the interest rate timing. You generally cannot lock in an interest rate until 30-60 days before you close depending on the type of loan you are getting. With that being true, sometimes your budget can become a moving target based on what the rates are doing closer to your closing date. However, many lenders offer extended rate locks to give you more time to close. You may want to find out what kind of locks different mortgage companies are offering and how much they cost to help with your decision. With regards to timing, purchasing a resale is often the faster route to take, but there are many benefits to building new that could outweigh timing as you will read in the next section.
2. Selections and Warranties - As I see it there are two big advantages that new homes have versus resales. The first one is having the ability to make your own choices. When you build a home you will have the ability to choose things like what type of cabinets will be installed, the color and type of countertops you'll have, what kind of flooring will be in different rooms and more. It will all be installed and done by the time you move in. When looking at resales of course anything in the home can be changed, but it will often be done after you have already moved in which could potentially be a headache. The other big advantage is the builder's and manufacturer's warranties. Most builder's offer warranties on workmanship, mechanical items and structural items. The length of time for these will vary from builder to builder. It is important to find out the details of your builder's warranties. Additionally, there are often warranties given by the manufacturers on items such as appliances, windows, roof shingles, etc.
That's all for now. Please check back soon to learn more in Part 2 of this series. You can also become a follower on Twitter at http://www.twitter.com/StephMcCaskill where I announce updates to my blog and more. For more information about buying a home, check out my website at http://www.NewHomeProInCharlotte.com
