Builder confidence in the market for newly built single-family homes is back on the rise, according to the December 2023 National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).
“With mortgage rates down roughly 50 basis points over the past month, builders are reporting an uptick in traffic as some prospective buyers who previously felt priced out of the market are taking a second look,” said NAHB Chairman Alicia Huey, a custom home builder and developer from Birmingham, Alabama. “With the nation facing a considerable housing shortage, boosting new home production is the best way to ease the affordability crisis, expand housing inventory, and lower inflation.”
If you’re about to embark on the exciting journey of building your dream home, congratulations! It’s an adventure filled with possibilities. But before you dive into the nitty-gritty of blueprints and floor plans, here are three crucial questions to ask your builder. These will not only help you stay within budget but also ensure your new home is everything you’ve ever dreamed it could be.
1. Any extra cost for certain lots?
Picture this: you’ve found the perfect spot for your new home, and you’re ready to sign on the dotted line. But wait – have you asked the builder about any extra costs associated with specific locations? Some lots might be a bit pricier because they offer better views, more sunlight, or a prime location within the community.
Before you get too carried away with visions of your future home, make sure to have a heart-to-heart with your builder about potential additional lot costs. Understanding the pricing structure based on location will help you make an informed decision that aligns with your budget. Remember, it’s all about finding the balance between your dream location and your financial comfort zone.
2. What comes with a basic home?
As you consider moving forward with a new home build, it’s crucial to understand what’s included in the basic price of your new property. Builders often have different packages, and it’s important to know exactly what you’re getting for your investment. These days, many new homebuyers are opting for taller ceilings, more spacious rooms, and energy-efficient windows.
Take the time to explore the details of the basic home package. Does it include the features you desire, or will you need to add upgrades to meet your expectations? By clarifying this early on, you can budget more effectively and avoid any surprises down the road. Building your dream home is a big deal, so make sure it’s equipped with everything you envision (and can afford).
3. Can I change the home’s design?
Many builders (if not all builders) have their own set of rules when it comes to customization. Some are flexible, allowing you to make substantial changes to the design, while others may have more rigid guidelines. Before you get your heart set on a particular layout or style, be sure you understand your specific builder’s policy on modifications.
If you’re someone who loves the idea of putting your personal touch on your home, make sure to inquire about customization options. Whether it’s tweaking the floor plan, choosing different finishes, or making structural changes, knowing the builder’s stance on modifications will help you determine if it’s the right fit for your vision.
Interested in learning more about buying a brand new home?
We’re here to support you every step of the way. If you have more questions or want to dive deeper into the nuances of new construction loans, contact your local Homeowners Licensed Mortgage Professional today. We’re ready to help you turn your dream home into a reality!
