Truth No. 1: You CAN afford new construction.
It’s often assumed that new construction is more expensive than purchasing an existing house. Everyone’s first thought when this topic gets thrown into a conversation is, “I can’t afford it!” But, that’s false! The price depends on so many factors: location (!!!), the type of house you wish to build, and other housing costs in the area. For example, let’s take a look at the housing market in the Twin Cities area. You could buy an existing house that needs a lot of rehab or new construction that doesn’t have a deck or finished basement – for relatively the same price. Yep, the SAME price.
Truth No. 2: You SHOULD use a real estate agent when purchasing new construction.
To us, a lot of builders portray that buyers don’t need to use a real estate agent for a new construction purchase. Builders fabricate this process because they have their best interest in mind and are trying to cut down on costs. So builder’s perspective aside, you DO need to use a real estate agent for new construction.
Our Agents Advocate:
As a buyer, you need someone who supports YOU and your best interest. Our agents can explain how things actually work as opposed to what the builder is trying to sell you on.
Our Agents Guide:
We understand new construction well, so we’re able to guide you through the process, step-by-step. For example, one of our agents would look out for you by recommending a trusted lender. On the flip side, if you went with a builder-preferred lender, that lender is going to have the builder’s best interest in mind and potentially over-charge you. Aside from financing, our agents will hold your hand – especially on overwhelming, design days. Our agents stay current with the most popular home fixtures and furnishings, so they’ll be able to point you in the right direction and help you make difficult decisions.
Lastly, our agents will be part of your transition, from start to finish, when it comes to the new construction process. They’ll be able to tell you if it’s normal what the builder is asking for all while being your go-to support system.
Truth No. 3: New construction IS a challenge, but there are MANY financing options available.
The price of new construction depends on what new construction you’re purchasing. Again, using a real estate agent who understands new construction would be in your best interest!
One option is buying into a subdivision where one builder is constructing one hundred-ish houses. This cost would be very similar to an existing house, but you’d have very limited design control (maybe only selecting the kitchen and bathroom finishes).
The next option would be choosing a smaller builder who builds houses on specs. There is slightly more design freedom here, allowing you to even select from a few different floor plans. For this type of financing, you would have to get a construction loan on behalf of the builder.
The last option would be to go fully customizable! You’re able to choose from any neighborhood and pick anything you want in the house (layout, finished, even how it sits on the land!). The design possibilities are limitless!
So what’s next?
Do your own research, evaluate your options and financial position, and reach out to us with any questions! The new construction process is very unique, so having this extra time to think and get questions answered is the best move. We can’t wait to hear from you!