If you have searched the internet or shopped with a Realtor® for a new home, you’ve likely noticed a lack of available options. Inventory of existing properties is at record lows and competition for what is for sale can be fierce. To avoid competing with other buyers, consider starting from scratch. Like anything, there are pros and cons that come with building a new home. Here are some things to consider.
- When building, you pick your lot and the model of the house to be constructed on it. Unless lots are in short supply in the particular community you want, you’ll likely avoid competition with another home buyer.
- Your home is built to the specifications you desire and you aren’t forced to accept choices made by someone else.
- It might be possible to initiate the building process before selling your existing property. This can be an attractive option if you are unable to qualify for both mortgages or you don’t want to risk having to make payments on two homes.
- Building can take six months or more from the date you sign the contract. The time it takes to get the keys depends on the builder and the municipality in which want to live, just for starters.
- Don’t get too attached to the advertised base price, which is for basic finishes (think oak cabinets). Everything, and I mean EVERYTHING, has an option for an upgrade. This can cause the starting price to increase significantly. If you are willing to make some sacrifices, however, you can get a nice home that meets all your needs.
- Lots or condos near Columbus’ core are available, but be prepared to pay a premium as most homes near the city start at $500,000. If you are open to being outside the outer belt, there are more affordable options available.
WHY WORKING WITH A REALTOR® DURING THE BUILDING PROCESS IS IMPORTANT
- The builder pays for your representation.
- The builder representative, as nice as he or she may be, works for the builder and represents their interests, not yours.
- Eventually, you will likely need to whittle down the list of upgrades to get you to the price that meets your budget. A skilled real estate agent can help you make choices that add resale value and avoid options that might cost you in the long run.
- Yes, you are buying a new home, but issues arise during the building process. A real estate agent will work with the builder to make sure problems are resolved to your satisfaction.