Home builders want to make a deal with you. There has not been a better time to build the new home of your dreams than right now. This article will be the most important one you read before deciding to build a new home.
The first thing you need to do is find out what the value of homes are in your local real estate market before you even consider building a new home. Why is this important? Your financing is based on what the resale value of your new home will be. No lender is going to approve a loan to build a home if its value is higher than the local market values.
Unless you have a lot of cash on hand and intend on staying in your new home a long time, you should build no more than the current value of homes in the neighborhood. Housing markets have changed dramatically in the last couple years and you need to do your homework. If you don?t, you will not even get financing to build.
How do you find out what is happening to your local real estate market?
Open houses are the best place to start. Local new home builders will have model homes open daily that you can take a tour through. Bring a tape measure to find out room sizes so you can figure out if your furniture will fit and whether it suits the size of your family. A laser tape is less conspicuous and you don?t need 2 people to operate it.
You?ll find out what these homes are selling for and will pick up decorating tips which will kill two birds with one stone. You?ll see what the latest trends are in appliances, light fixtures and plumbing fixtures so you?ll get some ideas of what you might like.
Internet websites that are specifically designed to show real estate prices and list homes for sale are another place to go to without having to get in your car and drive. This option isn?t as good as actually seeing the real thing, but it can give you a good idea of what local prices are doing. Check out websites like realtor.com or zillow.com.
Find a local realtor who is a New Home Specialist. They have a lot of information available on what the local real estate market trends are doing. They can also give you insights to neighborhoods that will suit your needs. Their websites are usually a wealth of information on the local markets.
Most new home specialists will oversee the building processes so you don?t need to be going to the building site all the time. This is very convenient for out of state and local new home purchasers. New home specialists will also email pictures of each phase of the building process so the buyers can feel like they are part of the process. Purchasers can contact their specialist if they see something they have concerns with after they have gone over the pictures.
What else should you consider?
Location is very important and does affect the value of homes in the neighborhood. Schools, hospitals, and shopping amenities all add to home values. Industrial parks or major highways facing the backyard will devaluate home values.
Information Gathering
Keep a binder or folder for all the information you have gathered. If you keep it organized, it will be easy to make a decision of where to build and what is the maximum amount you should spend.
Your information binder can also be used as supporting documentation for financing. If your lender is skeptical about approving the loan, you can show them that you have done your research. Once they see that you understand what you are doing, they will likely be more willing to work with you.
About the Author
Derek Hartman is a Realtor for Atera Real Estate Services in Sarasota, Florida. He is a ?New Home Specialist? in Sarasota and surrounding areas. Derek has received many awards throughout the years for excellence in his profession. He was named as one of the Top Hot 100 Real Estate Professionals in Sarasota, Florida for 3 of the last 5 years. Derek is a Multi Million Dollar Producer which shows how hard he works and has true dedication to his clients. He is also a member of the National Association of Realtors (NAR) and the Florida Association of Realtors (FAR). To find out more about Derek and receive some free reports, visit his website at New Homes Adventures [http://newhomesadventures.com].
(c) Copyright Derek Hartman All Rights Reserved Worldwide
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