Here’s our best advice if you want to build a new-construction home.
Today I’m with my team member Junior to ask him to share his advice on new builds. Here’s how our conversation went:
Donald A. Payne: Junior, you have a client getting ready to do their second new build. Talk to me a little bit about what kind of advice you gave them and what kind of advice you’ll give the public.
Don Payne Jr.: Absolutely. So we were working on their new build in the Pickerington area, and it was just a beautiful home and opportunity for them. It’s the second one that we’ve done together. The builders build the neighborhood very quickly, but it is taking a year because of how many new builds they have to make. I told the buyers who walked through the property that they were seeing a few things that we both didn’t like, and that we needed to get the inspector there.
They asked if I could do that, and I said, “Absolutely!” You want to get on a payment plan with your inspector and get them out there every two weeks to monitor the process and make sure things are being done properly. That way, after you take possession of the home, you’re not having all kinds of issues because they didn’t build everything perfectly.
“New builds currently require a 6% to 8% deposit when you go under contract.”
I’m not trying to throw any particular builder under the bus. It’s just the fact that they’re moving quickly, and you just want to check every situation. Also, to anybody looking for a new build, it’s a great option if you want to upgrade and get the things that you want because they’re beautiful, and you can design them the way you want.
Currently, new builds require a 6% to 8% deposit when you go under contract. That can be quite hefty on a $400,000 to $600,000 new build, but at the end of the day, we can also get that money from selling your current residence.
I actually have another client who’s selling their current residence. They’re under contract for a new build by borrowing the money from their retirement account. They’ll pay it back once we sell the house. They’re renting for a year, and then they’ll move into their new build. We structured a plan to make it work. If there’s a will, there’s a way. For this particular client, their family has expanded. They just got married, and they want to get a bigger home for their new family.
For many buyers out there, new builds are a great option. Some existing builds are either too expensive or need work, while a new build is absolutely new and beautiful. However, always make sure you have the checks and balances.
As always, if you have questions about this topic or anything real estate related, don’t hesitate to call or email me. I’m here to help!