I’m often asked many questions about buying a new home and home building. So I’ve decided to compile the top 5 questions about buying a new home to share with you.
#1 Questions About Buying a New Home: How much will it cost?
The average cost per square foot in the USA is between $70 and $125 varying by location. In general the south averages are lowest and in the northern states and west coast prices are highest. This cost does not include the price of the lot, improvements to the lot, or any thing extravagant so add your extras, like hot tubs, pools and extra plumbing fixtures to this price.
#2 Questions About Buying a New Home: What should I know before I visit a home builder or contractor or real estate agent?
• Know exactly what you want!
• Know all you can learn about building materials building techniques, what to expect from the contractor, and how to build a house.
• Know what you are looking at when you look under the crawl space or into the attic to inspect the construction of new homes you look at.
• Know what kind of building materials you want.
• Be familiar with grades of building materials, and the terms often used in construction.
• Know about energy efficiency ratings.
• Know about green construction, energy saving construction, and insulation.
• Know approximately what your new home should cost.
#3 Questions About Buying a New Home: What should I be looking for in a mortgage loan?
First of all your home construction loan should be arranged so that the rate is locked in on your mortgage now, rather than when construction is completed, because of the low rates at the current time.
• Go for a 15 year loan, to save around a $100K or more in interest over the course of the loan.
• Find out about FHA Loans, especially if you don’t have a large down payment.
• Clean up your credit before applying for a loan.
• Lock in a low rate as soon as possible.
• You will not owe full payments until construction is complete. Until then you will pay interest only, and only after that money is used in construction.
#4 Questions About Buying a New Home: What is the best way to keep up with all the decisions, choices and ideas involved in designing a custom home, or shopping for your dream home?
Build and keep a home building scrapbook, either on your computer or in hard copy, but preferably both. Collect ideas, pictures, drawings, floor plans, materials samples, color swatches, names and numbers of different materials selections, price quotes, names and phone numbers of contractors and all the other information in one easy resource. Write it all down, save it on your computer, print it out and keep it all together so that you have an up to date version of your home’s status.
If you are buying a home, build a wish book before you start looking, of things you want in a home. As you shop include photos of homes you look at, and prices, and information on the home. Keep a record of stats such as square footage, number of bedrooms, etc.
Six months is about average, but it could take up to one year. Weather is a factor, as is the amount of stone work, tile work, and other decorative building materials used. The home should be under roof at least in the first three or four months.
So how long will it take to close on the sale of an existing new home? One to Six months depending on a number of factors, but it usually takes two or three months.
These are just the top five questions about buying a new home. It is important to formulate and answer a lot of questions before you make any irrevocable decisions. Your questions about buying a new home or having a custom home built should be answered completely before you sign a contract.