before you build
New Construction Homes
There are many different avenues you can take when purchasing a New Construction home.
You can get a new home that is ready immediately, a home that is started but not complete yet, a to-be-built home that allows you to personalize all of the features you want, or a custom home built to your exact specifications.
Choose The Right Home Type For You
Immediate Delivery
An Immediate Delivery home can be made available to you in 0-30 days. At this stage, the builder is likely finished or wrapping up the final touches on the home. These homes will be move-in ready with upgrades already selected and included.
Quick Delivery
A Quick Delivery home is already well underway in the building process. Depending on the stage of construction, you may be able to select some upgrades, colors and finishes.
To-Be-Built Home
A To-Be-Built Home is a home that allows you to choose a home site, choose each structural option, and customize all of your selections. Depending on the builder, you should expect a timeline of between four and six months for completion of your new home.
Model Home Investment
A Model Home Investment is your chance to purchase the model that the builder is using to showcase their community. This home may be available for immediate purchase, but the builder will then rent it back from you so they can continue to showcase the home until the community is completed. This can be a great investment opportunity because as homes sell within the community the value often continues to increase.
Custom-Built Home
A Custom-Built Home is your opportunity to design and build a unique home with personalized floor plans and distinctive details based on your wants and needs. If you are a custom-home buyer, we will help you locate your ideal lot and work with you and the builder to create a floor plan design specific to your lifestyle. Finally, you will be able to add custom upgrades and finishes to your specifications.
Buying Land
Buying a plot of land, raw land, is not the way most people go into building their home. The normal process for a majority of home buyers is to buy a home in which the land is a part of. Many homeowners do not have an ideal of the work that the builders or developers put into acquiring the property on which their home sits.
You will find the following information valuable to your process if you are buying land to build a home. To be sure of your decision, you must know what to look for when buying land to build a home. Below are a list of items that you should be aware of in order to protect yourself. The list is not exhaustive, but it includes some key advice on purchasing land and should be a part of your home planning checklist.
Checklist For Buying Land to Build a Home
The value relative to you
The most important aspect of searching for land is to determine the value of the property to you. Let’s just forget about the appraiser for a moment and think in terms of human value. Do you like the location? Is it ideal for the type of home you plan to build? This is the value that you must first consider when buying land to build a home.
Land zoning
You must determine if the property is for residential use. It is crucial that you know this information. You wouldn’t want to be buying land to build a home and later find out that you can’t build your home because it isn’t classified as residential. Land is generally zoned as agricultural, commercial, industrial, environmental, as well as residential. This also dictates whether you can build a one-story house plan or two story house plan.
Land Restrictions
Buying land to build a home does not give you free will to do whatever you please on the property. The local city and county have restrictions by which you must adhere to. These restrictions are known as zoning ordinances. Get a copy of these ordinances before you purchase the land. You may have to pay a small fee. The ordinances will detail what you can and cannot do to the property in that particular city or county.
Property Topography
The lay of the land. Is the land conducive to your proposed home design? Consider whether you will need to add (fill) or remove (cut) significant amounts of soil.
Is there enough room for a septic tank (if needed)? You must also think about the positioning if the building with reference to home orientation for passive solar and water drainage. Determine if the property located within a 100-year flood zone? You don’t want your home subjected to the possibility of flooding. Trees are another factor to consider when buying land to build a home.
While they can produce a delightful setting, chances are that you will have to remove quite a few. Removing trees can be an expensive proposition. This is often overlooked in terms of cost for site preparation.
Condition of the soil
If you have issues dealing with the physical land itself, a soil analysis may be in order before buying land to build a home. It’s just a good ideal to have this done anyway. Sometimes the owner of the land may have already had one completed. You should invest a few hundred dollars for this if the owner hasn’t. Subtract the cost from your offer on the land. You should know the content of the soil before buying land to build a home. Does it have an abundance of rock? It can prove too expensive to remove. Is it junk soil and lack a degree of sturdiness? You may find yourself digging deep to find hard soil to support your homes foundation. Maybe the land emits radon gas. If so, you should know so you are able to properly ventilate or prevent entry into your home. The county usually requires a perk test to determine if the soil can filter if installing a septic tank. In case it doesn’t, you cannot build.
Public Sewer
Are you able to tap into the county public sewers? If access is not available for the property, you will have to install a septic tank for your sewage. In addition, the county has to determine if the land is even acceptable for a septic tank as the aforementioned soil condition explains.
Subdivisions
Looking at buying land to build a home in a neighborhood can prove tricky. If you buy a vacant lot in a neighborhood and the homes fall within a certain price range, the home your plan to build must be in that range too. If homes in the subdivision average $150,000, you are not going to get a lender to supply you a loan to build a $350,000 home. You should price your proposed home within the scope of surrounding homes.
Covenants
Check to see if there are rules that govern the use of the land. They are included in the deed or referenced in the land records. Covenants are private restrictions set by the sellers (owners such as developers or builders). Unless it is unconstitutional, it is enforceable. Some property sales do not include these private restrictions, especially when the land is not a part of a community development. You typically find them in neighborhoods where the developers have them in place.
Cost of ownership
How much will it cost you to own the land? Some areas are more expensive than others and this will be noticeable when you receive your property taxes.
The Process
Figure Out Your Lifestyle Needs
Determine your must-have needs and wants list. This will help us evaluate which areas are best suited for you.
Research Neighborhoods
Consider your lifestyle needs and determine a list of neighborhoods that would be a good fit for you.
Learn What Is Standard And What Is Extra
We will guide you through what is standard and what is an upgraded option. You may want room additions, upgrades like a gourmet kitchen with granite countertops, etc., or you might decide on a few key upgrades to make your home complete. We will help you decide what makes the most sense financially and what will add value to your new home.
Financing
A construction loan might be right for you when purchasing a new construction home. Most construction loans will offer short-term funds that can help you through the building part of your project (6-12 months). After home construction is complete, these loans convert to a long-term 15 or 30-year-loan. Construction loans are highly specialized and aren’t as readily available as standard mortgages. Please consult our page for further details.
Contract
Now that you’ve selected your floor plan, options and upgrades, the next step is writing the sales contract. Your agent will be there as a resource for you to negotiate and address any questions or concerns.
