Tight inventory is driving Buyers to the New Construction market where they can avoid tough multiple-offer scenarios and have more choices. New-builds have some of the best home-purchase value in the market today. Let’s talk about some of the benefits of new construction and answer common questions about the process.
BENEFITS OF NEW CONSTRUCTION
- Superior Energy Efficiency – using the newest and most advanced design, construction practices and materials lower home maintenance and utility bills and improve indoor air quality.
- Builder Warranties give Buyers peace of mind.
- Special Financing and Incentives that could cover a large chunk of your closing costs.
- Allows Buyer To Personalize their new Home – you don’t have to settle for previous owner’s décor choices or poor floor plan.
- Neighboring and Area Amenities such as parks/playgrounds, pools, recreation centers, golfing, shopping.
- Homeowners Associations set a consistent standard for exterior maintenance to ensure higher resale values.
- Builders lead with fresh architectural design & color trends.
- Engineered materials improve safety/durability and reduce waste.
Can I still use a Realtor when purchasing New Construction with a Builder?
YES, absolutely, and YOU SHOULD. The builder’s construction team guides you through the process, but having an Realtor who is experienced in New Construction advocating for your best interests is truly invaluable.
Will the Builder pay my Realtor?
Yes, most reputable builders will pay all your Realtor’s fees – it’s free for you and can save you loads of time, stress and money.
How long does it take to build a new home?
The typical timeline for a “dirt start” is 9-12 months, give or take. Builders cannot provide a concrete close date until a month or so prior to completion so it’s important to understand the flexibility needed on your part when it comes to moving. You must also be aware of the Builder’s timeline requirements for Selling your current home if your purchase is contingent.
If the lengthy build-time doesn’t work for you but your still want a brand new home, many builders have lists of “quick move-in” homes that are nearly completed and ready to close!
Who are the top builders in Colorado?
Check out this Post that lists the most productive builders in Colorado.
What kind of Warranties do Builders offer?
Builder Warranties protect against defects in workmanship and materials for a limited time, typically 1-2 years. Builders also provide a Structural Warranty for the structure and foundation of the house and are often administered by a 3rd party and provide coverage for 8 – 10 years.
Will I be signing the same Contract to Buy and Sell used in resale transactions?
Builders use their own purchase contract and will not allow any changes. The contract is carefully written to protect the Builder and is heavy on Disclosures to the Buyer to release them from liability. Refunds of Earnest Money are less lenient in a Builder transaction than in resale and these funds typically go “hard” once you have loan approval.
Where do I start when considering New Construction?
Talk to your Realtor! Your Real Estate Agent will help you decide whether New Builds are a good option. We can start a search for new communities in areas you are interested or start requesting lists of “ready now” homes from various builders. You can also go straight to the New Home Source to see what Builder’s have started marketing online.
Curious about New Construction or have other questions? Connect with me to find out how to learn more about the process and whether it’s the right path for you!
Sources include Ron Meier – Education Committee Chair of the Builder Realty Council of Denver, Berkeley Homes