Finding the right house in the perfect location is the fundamental search criteria for every home buyer. Of course, what that means to each person will be quite different but the allure of starting from scratch is a nearly a universal consideration at some point for everybody. What better way to start out in a new lifestyle, than to start brand new? Here are some key points to consider.
How long does it take?
Consider three months as the average build time from foundation to first day in the house. Preparation for the build can take just as long more or less, depending on readiness/availability of the new lot, design time and completion of build plans. If you want a custom project, don't rush. If you need to move in fast, look for subdivisions or small developments that are building spec homes you can move into as soon as complete.
How much does it cost?
New construction is not cheap, but can be an affordable option, especially if buying on spec. Expect to pay market value for new construction, with minimal room to negotiate. Builders are in business for their margin, and as skilled trades people, they are managing materials and labor costs, marketing expenses and administrative needs, along with your expectations in the finished project. You are hiring their business, along with buying a house. Most of the cost is fixed in advance by necessity. Cost of land is in addition to build cost!
The first place to start when considering building new is financing. Approval conditions, down payments and loan structure will vary depending on who owns the lot during during construction and the phase of the project you are purchasing (custom new vs. completed or semi completed spec). Even if you are already pre-approved to purchase an existing home, your first stop when you decide to build new is your lender and/or financial advisor. Knowing your budget in advance is key to success when building new.
Location Location Location
Location for a new build requires available land. Land costs for private lots with a view in a great location are much higher than similarly ideal new homes in more regional areas. In the State of Maine as an example of prime semi-rural opportunities, small towns are growing. New subdivisions are making the opportunity to start brand new extremely attractive both for immediate quality of life and long term investment. These new neighborhoods establish community, set standards for marketability and manage the environmental impact of social growth. Building new is exciting, gratifying and a great way to go! Plan ahead, review your lending options and find the perfect spot.