Buying Land or Buying in A SubdivisionBuying a brand new home holds special appeal to home buyers who want to create the perfect home for their needs. This dream will more likely be realized by visiting the subdivision models and choosing from one of a variety of styles than buying land, consulting an architect and hiring a builder to design and build a custom home. The reason for this is that, in many areas of the country, the availability of developable is nil and the permitting process has grown to be amazingly complicated. Some residents, by voting for restrictions on development, have contributed to the lack of raw land and land that doesn't meet zoning regulations. Land acquisition costs in some marketplace have risen so high that the average home buyer cannot pursue that route to a new home. The fees for developing a parcel have also risen dramatically. The National Association of Home Builders concluded in a recent survey that the builders' cost of meeting development fees adds more than $12,000 to the cost of a typical new home.
When land is available, buyers must take special precautions to protect the outcome of their purchase. Determine if the land is buildable by checking with the planning board. Find out what the lender will require in the way of septic designs and wells, if town water and sewer are not available. Regulations pertaining to setbacks, wetlands protection, etc. should also be taken into consideration before a purchase is made. Be sure to include a clause in the agreement that states that the sale is contingent upon getting all the necessary approvals from any and all state, local and federal agencies that might have jurisdiction over the land.
When choosing a lot in a subdivision consider the traffic flow in the development, foot traffic nearby, and abutting property (commercial, school, recreation). Plots with nice views, on quiet cul-de-sacs, or abutting conservation land may have a premium on them and the cost can be considered an item for negotiation, depending on the desirability of the subdivision and the marketplace.
Visiting Model Homes
You can shop for new construction on your own or with the help of a real estate agent. Developers may tell you that you can save money by dealing directly with them instead of using an agent but many of them prearrange to pay cooperating fees so you may do just as well by using an agent, particularly a buyer's agent who will negotiate on your behalf to save money on the price of the home or to include upgrades. If you plan on using a buyer's agent make sure you sign in under his/her name if you visit the model without him or her. It makes no sense to let agents working for the developer help you buy a home when their legal and fiduciary duties lie with the developer.
Hidden Costs
New construction home buyers will be on the lookout for unexpected costs. The base price of new construction is the beginning point. Builders will try to keep the base price as low as possible to attract the greatest number of buyers. It is important to get full specification sheets if you wish to make an apples to apples comparison between similar homes in different subdivisions. Here are some of the typical new construction costs that are extras: landscaping, walkways, garden walls, fencing, gates, driveway paving, utility connections, tile, kitchen cabinet and appliance upgrades, hardwood floors, corian and granite countertops, whirlpool baths, and various municipal fees and warranties, etc.
Amenities
Open floor plans, two story entrance foyers, whirlpool baths, spas and larger garages are among the amenities that home buyers are looking for in new homes. The more open California style has broad appeal and found its way into homes being built as afar away as New England. Buyers like open, light, bright and a contemporary flair. Windows have been more important in today's designs and provide architectural interest in many new homes.
A dramatic foyer is being featured in many new homes to add drama inside and out. Ceilings are rising to 8 or 9 feet in the main living areas in an effort to give the illusion of greater space and graciousness. Cathedral, vaulted and tray ceilings, recessed lighting, and skylights add even more impact. Libraries, media rooms, and offices are become standards in upscale homes. To meet future technology needs, cable and phone lines are being installed in all rooms of new homes.
Country kitchens with great rooms or family rooms continue to grow in size and popularity and include island or peninsulas to distinguish the working area from the eating area. The more formal living rooms are being downsized as American families have been spending more time in family rooms.
Finding A Good Builder
Judging a builder's work may be a challenge for the average home buyer but experts advise that you can look for some telltale signs of a good work. The final finishing work can be a good indicator of the overall work. Does the builder use wood doors instead of the hollow core kind? What about the flooring – is tile and hardwoods included or a cheap vinyl? Open and close doors, windows and cabinets to see how they fit.
Talk to the neighbors in a new subdivision – asked them what they liked about the builder and what they didn't like. You may find out that the builder does a great job building the home but getting the final landscaping done is a hassle. Find out how well the builder addressed problems. If you are interested in a brand new subdivision, visit the builders' last project and ask the residents there about their experience with the builder.
Experts recommend that you hire a good home inspector to check on the building at various stages – after the foundation or footings are poured, after rough framing and the final visit for a 'punch list' – but it may be useful to arrange for the home inspector to give you advice about the builder's work from visiting the development before you make an offer.
Blueprints and Specifications
Blueprints and specifications with noted changes make up the bid package for a new home. Every paper should be dated and initialed by the buyer, builder (and architect, if applicable). Most problems that arise in new construction are from lack of communication or clear communication between the parties. The blueprints tell the builder everything from layout of the floor plan to heating, plumbing and electrical service installations. Blueprints and artistic rendering of the new home make it easier for the home buyers to get a feel for the look of their new home.
