What is Involved in Building a New Home?

At an initial buyer counseling interview, I ask prospective home buyers if they would consider building a new home as they consider the spectrum of options available to them.  For some prospective home buyers, the answer is “yes”, and this introduces a different process to the home buying experience.

Two Types of New Home Builders

New construction sites are available in many localities of the Capital Region of New York.  Most of the new home communities found throughout the Capital Region are developed and built by “tract home builders” who supply a limited choice of floor plans and styles.  Changes to these plans are usually restricted and the changes that are allowed are met with a “change order” which impacts the price, naturally.

Generally, the time to build a home is relatively quick; 120-160 days and are usually less expensive to purchase compared with building a custom home. 

Working with a “tract home builder” has its advantages.  For example, having a limited supply of floor plans to choose from can be a great benefit.  Too many choices can be overwhelming to a new home buyer.  There are many details to keep in mind and address and, having a narrow set of choices can be quite welcome to a new home buyer.

 A custom home builder is one who will meet with you and explore precisely what you wish to accomplish in building a new home.  The process tends to be longer compared with working with a tract home builder.  The design of the exterior and interior, together with the seemingly endless details require time and careful consideration.     The selection of things such as colors, flooring, fixtures and appliances is unlimited.  The construction of the custom home is slow and deliberate.   There can be many change orders along the construction process, as the home buyer is better able to visualize the overall design and utility of the home.

Advantages to New Construction

• New home buyers can select all their options and finishes to their new home.
• The builder offers a new home warranty, which makes certain items and systems guaranteed for up to six years in New York State.  Be mindful, some builders have a practice of limiting their liability in a new home.  Depending upon the limit of liability, this can be fair and reasonable.  Speak with an experienced real estate professional or a competent real estate attorney for specific guidance on this point.
• A new home should have few repairs needed in the first years of ownership.  Additionally, overall general maintenance should be limited, due to the age of the structure.
• Energy efficiency is greater compared with an existing home.

Disadvantages to New Construction

• Due to the construction of the home, a longer amount of time is necessary for the home buyer to take possession of the home.
• Some home buyers need to be aware they are living in a construction zone.  The new home community may not be fully built for a period of months or years, in some cases.
• A new home buyer may have fewer neighbors, particularly if a home is purchased in the early phase of the new home community.
• There is a substantial expense incurred to the home buyer for furnishings, window treatments, etc.

Be certain to work with a real estate professional who has experience in new home construction to guide and advise you through what can be a complicated process. 

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