In many neighborhoods around New England the housing stock is old and starting to show their age. Many of these homes, which were built in the 1940s and 1950s, are smaller and increasingly no longer meet the needs of today's more modern, growing families. This has led to the tear down of older homes, and in their place, new homes are being built. If you find yourself dissatisfied with your home search you may soon be looking at newly built homes that match your family's needs, or you may even start looking into building your own dream home. Often, the time horizon of ownership of your second home is much longer than your first. Therefore, it can make sense from both a financial and space perspective to start over with a new house.
The first step in finding the right home is to understand the nuances of neighborhood regeneration. Essentially, you should find an area in which the housing stock has begun to change. Find proof that the change is already happening by pointing out the houses that developers intend to take down or locate an area where new homes have already gone up. You can find out additional information about tear downs in the area at the local building department. There they will have files on every permit pulled for new construction. Also, watch homes values. In many cases, the value of the land alone is the same as the value of the land plus the house. If you find that land values in the neighborhood are about the same cost as some homes, you'll know the neighborhood is transitioning and new homes may continue to be built there for some time to come.
Many buyers opt to buy homes pre-construction because they need time to sell their current home. Building a new home usually takes anywhere from six to twelve months. New construction can be the best way for people to go ahead and buy a home (reserving a price in the market) but also postpone their closing date (giving them time to sell their house).
One advantage of buying new or pre construction is that (if you want to) you can be involved from start to finish, ensuring that when all is said and done, you'll be living in your dream home. You get to specify the tile you want, or the cabinets you want, or any other feature of the home. Do you visualize an open floor plan with plenty of room for the kids? Or maybe your perfect home includes a spacious kitchen with all the latest appliances. You can either go with the upgrades, or you can keep the standard features in order to keep costs down.
If you are buying a home during the early phases of development, you can usually choose which floor plan you want to use and even which lot you want to build on. You also may be able to get a better price as a developer will be more willing to make a deal at the onset of construction.
Additional Advice:
Know your builder - Get as much information as you can on the company building your home before you sign on the dotted line.
Know your budget - All those special touches add up. Be sure you have a budget going into the process. And stick to it.
Know your neighborhood - Does the area have the amenities you're looking for? Whether it's nearby shopping or good schools or bike trails do your homework to make sure the neighborhood fits your style.
Know your lender - Make sure the financing for your house is in order. Construction lenders offer different incentives and loan packages than traditional home loans. Be certain that you have spoken to the right professional that can offer you the best loan package that fits your needs.
Know your home warranty - Builders are required by law to give specific minimum warranties to ensure that you don't face any major problems during the first year of living in your new home.
Questions or comments about this article? Contact the author - Mathew Roth