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Questions To Ask When Buying New Construction

Buying new construction is a different process than buying your typical pre-built home. What’s included, what’s not, and what’s hidden in that massive contract depends on the builder that you use. As with any situation where you’re moving or about to spend a lot of hard earned money, it’s important to go in prepared – and that means asking the right questions.

The first interaction you’ll have with the builder – and in fact, the first several, at least – will be with the builder’s sales representative. These early meetings are your chance to ask all of the questions you might have regarding costs, labor, and other essentials that you need to know about before jumping in. Write your questions down before you go in so that you can be sure not to forget anything important, and don’t be shy about getting the answers that you need. This is a major purchase, and you don’t want any surprises later.

Not sure exactly what you need to be asking about? These 10 questions to ask when buying a new construction home will help get you started.

Is the lot cost included?
When you’re exploring new construction options, you’ll see that each plan comes with a base cost. This is the cost of the structure itself, as well as base interior and exterior features (we’ll get into those in a little bit). What may not be included is the cost of the land, so be sure to ask if the lot cost is figured into the base.
If the lot cost is included, ask if there are premium costs for certain lots. It’s possible that the base cost does include the lot, but the remaining lots in the development all have added costs for certain features that you can’t opt out of, such as look-out windows in the basement or wider yards. If the lot cost is not included, ask what it is (and whether there are additional premium costs) and factor those into the base price for the house.

How long will building take?
It’s important to know what you’re getting into timing-wise with a new construction build, particularly if you have a house to sell first or you’re going to be renting. While the building process is prone to delays and you won’t be able to get a finite schedule for how long the build will take, you’ll be able to get a general idea of what you can expect. Be sure to also ask if the build time includes the time it takes to get the permits, since those will typically take about 30-45 days to obtain.

What warranties are provided with the house?
Just because a home is brand new doesn’t mean that no problems will arise. Fortunately, most new construction homes come with one or more warranties that protect you in the event of a mishap early on, including a short term whole-house warranty and a longer structural warranty. Ask what the warranties include and how long they last. While you can always buy your own home warranty, you should expect that the builder will cover you in some way for at least the first several years.

What are the standard finishes?
Does a base cost look too good to be true? That might be because the builder is expecting you to spend big when it comes to finishes like flooring and countertops. Ask what types of finishes are included, and better yet, go through the model unit with the sales representative and have them point out what’s standard and what is an upgrade. You likely won’t meet with the design center until after you’ve gone under contract, so it’s important to figure out early what sorts of finishes and appliances you can expect to be included in the home’s base price.

Are you allowed to purchase your own appliances or materials?
Had your heart set on butcher block countertops but the builder doesn’t offer them? It’s possible that you may be able to purchase them yourself and then have the builder install them. Alternately, some builders won’t let you purchase your own materials, but they will let you bring in your own appliances, even on items that are included in the sale, like sinks and toilets. Keep in mind that, in terms of appliances, you probably will have to make some purchases on your own, such as washers, dryers, and refrigerators.

If you can bring in your own materials or appliances, will you get credits?
Let’s say the base price of your new construction home includes a kitchen sink worth $200, but you’d like to upgrade and purchase a sink on your own that costs $400. Will you get $200 off the purchase price for not using the sink that’s included in the base? Some builders offer credits for any upgrades or self-purchased materials or appliances, while with others you’ll just have to eat the cost of the originally included item. Credits are a nice touch, but they’re not usually standard, so it’s best not to go in expecting that you’ll get money off the base cost for purchases like these. In general, builders don’t like to lower the base cost, but if they do offer credits, that’s a win for you.

Is landscaping included?
Depending on the size of your yard, landscaping, including sodding and putting in trees and plants, can set you back several thousand dollars or more. Is that a cost you’ll have to factor in on top of the home purchase? Some builders include your basic yard work, while others leave you with unfinished land that becomes your responsibility to landscape (and generally must be completed in a set amount of time, per the contract). Ask whether landscaping is included, and if so, what that entails and if there is any sort of warranty on the materials so that if your newly sodded grass dies right away or some other mishap occurs you’re not responsible for fixing it.

Does the contract include a cost escalation clause?
New builds are notorious for last minute surprises, but you don’t want to be on the hook financially if it happens. A cost escalation clause allows the builder to charge you for any unanticipated costs that arise as a result of necessary labor or materials. So if lumber prices go up before the builder has purchased the materials for your flooring, or an unexpected delay adds a few weeks onto the build, you’re on the line for those costs. If you’d rather not deal with the stress of unanticipated costs, find a builder that doesn’t include a cost escalation clause in the contract.

Are there any homeowners rules or regulations?
Even if there is no homeowners association for the development, the builder may still set some guidelines as far as what’s allowed and what’s not on your property. For example, you may not be able to use a particular type of fencing or install a shed in your backyard. It’s better to ask this question early and know what to expect than to move in and find out that you can’t bring into fruition certain plans you had for the space.

Are there any financial incentives for using the builder’s preferred lender?
Some builders offer discounts on closing costs if you obtain your mortgage through a company that they have a relationship with. Ask if these sorts of financial incentives are offered, but don’t make your final decision about where to get your mortgage based on the discounts alone – you may still be able to find a better deal through other lenders. It’s still good to know however if there are benefits to working with the builder’s preferred mortgage company.

If it’s your dream to build a new construction house, go in to the process with an open mind and a clear idea of what you can expect. The more questions you can ask in the beginning, the less surprises you’ll potentially face in the future.

And as with any home purchase, be sure to have an attorney read over your contract so that you can be sure everything is fair and equitable. Some buyers of new construction prefer to go in to sales meetings with a real estate agent as well, though in my own experience, I didn’t find that to be necessary. Be smart, ask the right questions, and at the end of the day (or fine, year) you’ll end up with a beautiful home built just for you.

5 Must-Do’s Before Buying a House

If you’re ready to begin the journey of homeownership, it is important to cross a few items off of your to-do list before hunting for the perfect house. Buying a home is a process, and you want to be as prepared as possible. Here are a few steps to take that will get you ready to buy a home.

1. Get your money straight.

A year to six months before you begin the buying process, find a lender and have them pull your credit. This will give you insight into what you expect and what you may need to mend before you can make the purchase that you want to. Your lender will be able to let you know what you qualify for based on your income at the time so that you can look for homes within your price range when the time comes.

2. Decide where you are willing to stay a while.

A home is a commitment. You can always resell, but with the transaction fees that come along with buying a home, you may end up losing equity if you try to sell your home quickly after buying it. If you don’t think the home is somewhere you can see yourself for several years, keep looking.

3. Don’t hesitate to take your time.

There is a lot more to the purchasing process than just buying a home. It is important to weigh the pros and cons of a home that you are considering buying. How is the neighborhood? Will the long commute be overwhelming in 6 months? Make sure you’ve considered the aspects of what makes up your day-to-day life and how your new home will help or hurt that process.

4. Know the difference between your dream home and a fantasy home.

Being realistic is a key part of making the home buying process easier on you. Your agent will work hard to make your deal the best it can be, but when it comes down to it, you will usually get what you pay for. Major discounts typically mean you will have work to do, and that doesn’t necessarily mean a steal for you. Be realistic during your search and keep in mind that the perfect home might not be out there, but that doesn’t mean that your dream home isn’t.

5. Find an agent for you.

Finding an agent that works for you take a major weight off of your shoulders in the home buying process. Ask your friends and family, and look into local agents that come highly recommended. When you find a trusted agent, they will be able to show you houses that you can’t find from a simple internet search and be able to negotiate for you along the way. It is their specialty – don’t waste the time or energy trying to do the job of a realtor on top of everything else you have on your plate!

Choosing The Perfect Area Rug

If you’ve ever seen a perfectly styled room, you probably noticed that the area rug was used to tie the room together. Because they come in all shapes, sizes, colors, and designs, it can be overwhelming to decide what area rug is perfect for the room you are trying to decorate. Here is a short guide to help you find the perfect fit.

1. Determine your price range.

In order to shrink your option pool, the best first step is deciding how much you want to spend. Area rugs can get expensive, and they tend to grow in price as they grow in size. Other factors, such as material type and pile (the height of your rug fibers) will impact the price too. If you set a range before you go shopping, you can save yourself the heartbreak over a rug that is way out of your budget.

2. Decide on a size.

Ultimately, the size of the rug is up to you. There are recommendations depending on the room type, but it is YOUR home so the final call is yours. For living rooms, it is recommended that you center the rug and make sure it is large enough to cover all furniture space. Low-pile rugs will last longer if you have a heavily trafficked living room. For your dining room, consider a rug that will hide stains from accidental spills and will have about 2 feet of empty rug space outside of your table – that way, dining chairs won’t scratch your floor. For bedrooms, choose a carpet that has 3 or more feet on each side of your bed. Usually high-pile rugs are best for bedrooms to add a cozy vibe.

3. Choose a style & color.

You’ve made it to the best part! Now that you’ve slimmed down your choices with price and size, you have options based on your color and style preference. When choosing your color, keep in mind that the rug can either be the dominant color in the room or it can accent colors you already have. Designs are all about personal preference. If you want the rug to have a bright pattern, it can be the center point of your room. Otherwise, you can pick a calming rug that balances out the room if it is otherwise busy. Keep in mind that patterns will hide stains and traffic.

Choosing The Best Bathroom Tile

If it is time for your bathroom to get a renovation, you are likely already thinking of what style you have in mind for the update. One of the major parts of that design is your tile. Here is a quick guide to choosing the best tile!

1. Pick Out Your Favorite First.

When looking at tile options, you will likely find one that you immediately fall in love with. If you find yourself picturing the rest of your bathroom based off a tile, choose that tile and use it as your starting point.

2. Keep It Simple.

Depending on your bathroom, you might have floor tile, wall/accent tile, and bath tile. Try to use no more than 3 different types of tile, and do your best to keep it to 2. You will have trouble matching tiles the more you choose and tiles that differ too much in a small space can make it feel cluttered. If you ever plan to resell your home, choosing too many tile options or choosing extremely decorative tile can date your bathroom quickly and might end up costing you during the selling process.

3. Consider Maintenance.

Have you ever had a bathroom where it felt impossible to clean certain parts? Keep that in mind when choosing your tile. Consider the amount of maintenance it will require. If you prefer little to no maintenance, choose either a porcelain or ceramic option. If upkeep isn’t a big deal to you, natural stone is an option for you as well.

4. Choose!

The hardest part is choosing. Instead of doubting yourself, take that tile you first fell in love with and see if you can imagine a bathroom styled around that tile. If you can, go for it!

ADD A SPRING TOUCH TO YOUR HOME

Even if the weather isn’t cooperating quite yet – spring is here! Cheering up your home with some spring decor is the perfect way to prepare for warmer days and more sunshine. Here are some options to prepare your home for the next season!

ADD AN HERB GARDEN

While they may not last outdoors with the sporadic weather of spring, bringing potted herbs into your home and letting them soak up sunlight in a kitchen window is the perfect way to add life to your home and have access to fresh herbs while you’re cooking.

THINK SPRING 

If you are all about DIY-ing, creating simple decorations can add a pop of seasonal color to your home. Take that pair of rain boots you don’t wear anymore and turn them into planters – add bright floral arrangements and use your new decor item as an inviting piece by your front door.

POPS OF COLOR

Neutral and sleek is all the rage right now, but adding a pop of color in your normal decor can add a cheerful touch to your home. Swap out your kitchen napkins or tablecloth with something a little bit more colorful, like soft blues or pinks. Small changes can do enough to make your home feel different without being overwhelming.

FLORALS ARE ALWAYS THE ANSWER

Whether or not you already include florals in your home decor, take the time to swap out or add something new that feels like spring. While fresh flowers are a great choice, consider picking up some faux florals for the majority of your decor and saving the fresh flowers for a centerpiece. Don’t be afraid to add pops of color, specifically yellows and pinks, to create a focal point for the room.

TOUCH UP TIME

Is there a room in your home that is just feeling drab? Maybe it is dark and uninviting, or maybe it has white walls that have started to fade. While you are spring cleaning, consider adding a fresh coat of paint to a place in your home that needs a boost of light. Spring is all about being fresh and new, so your home should feel that way too!

Invest in Yourself by Owning a Home

Investing in yourself by owning a home can bring numerous benefits and opportunities. Here are some reasons why owning a home can be a wise investment:

  1. Building equity: When you own a home, you are building equity as you pay down your mortgage. Equity is the difference between the value of your home and the amount you owe on your mortgage. Over time, as your home’s value appreciates and you continue to make mortgage payments, your equity increases. This can provide financial stability and serve as a long-term asset.
  2. Potential for appreciation: Historically, real estate has shown a tendency to appreciate in value over time. While there are no guarantees, owning a home can offer the potential for your property to increase in value. This can result in significant returns on your investment if you decide to sell in the future.
  3. Tax advantages: Homeownership often comes with tax benefits. In many countries, homeowners can deduct mortgage interest, property taxes, and certain closing costs from their taxable income. These deductions can help reduce your overall tax liability and potentially save you money.
  4. Stability and control: Owning a home provides stability and a sense of control over your living situation. Unlike renting, where landlords can increase rent or decide not to renew your lease, owning a home gives you the freedom to create a living space that suits your needs. You have the power to make improvements, decorate, and personalize your home to your liking.
  5. Forced savings: Paying a mortgage is a form of forced savings. Each monthly payment goes toward building equity and paying off your loan balance. This can be an effective way to accumulate wealth over time, as opposed to renting where your monthly payments go solely towards your landlord’s income.
  6. Potential rental income: Homeownership can also present opportunities for generating rental income. If you have extra space or decide to move but want to hold onto your property, you can rent it out and earn passive income. This can be a valuable source of additional cash flow and a way to diversify your investment portfolio.

It’s important to note that homeownership also comes with responsibilities, including maintenance costs and potential market fluctuations. It’s crucial to carefully consider your financial situation, long-term goals, and the real estate market in your area before deciding to invest in a home. Consulting with a real estate professional or financial advisor can help you make an informed decision.

Gen Z: The Next Generation Is Making Moves in the Housing Market

Generation Z, born between the mid-1990s and early 2010s, is starting to make its mark in the housing market. Here are some ways this upcoming generation is influencing the real estate industry:

  • Homeownership Aspirations: Despite being younger, many Gen Z individuals already have aspirations of homeownership. They understand the value of investing in real estate and building equity over time.
  • Tech-Savvy Approach: Gen Z is the first generation to grow up with technology at their fingertips. They are comfortable using online resources, mobile apps, and social media platforms to search for homes, connect with real estate agents, and gather information about the market.
  • Sustainable and Energy-Efficient Homes: Gen Z places a strong emphasis on sustainability and environmental consciousness. They are more likely to prioritize energy-efficient features and eco-friendly materials when buying or renting a home. Builders and developers are taking note of this trend and incorporating green features into their projects.
  • Urban Lifestyle Preferences: Gen Z tends to lean towards urban living, valuing walkability, access to amenities, and proximity to work and entertainment. They are more likely to choose properties in urban areas or mixed-use developments that offer a live-work-play environment.
  • Demand for Affordable Housing: Affordability is a significant concern for Gen Z, given the financial challenges they face, including student loan debt. As they enter the housing market, they are seeking affordable options, such as starter homes, co-living arrangements, or homes in up-and-coming neighborhoods.
  • Flexible Living Spaces: Gen Z values flexibility and adaptability in their living spaces. They prefer open floor plans that can be easily customized to suit their needs and changing lifestyles. Homebuilders are responding by offering versatile floor plans that can accommodate various uses.
  • Virtual and Remote Homebuying: The COVID-19 pandemic has accelerated the adoption of virtual homebuying tools and remote transactions. Gen Z, being digital natives, is comfortable with these technologies and is likely to embrace virtual tours, online mortgage applications, and remote closings.

Real estate professionals should pay attention to the preferences and needs of Gen Z as they become an increasingly influential force in the housing market. Adapting marketing strategies to reach this generation, leveraging technology, and understanding their unique preferences can help real estate agents connect with and serve Gen Z buyers and renters effectively.

Your Pipes Are Gross, but That’s OK

Plumbers do the dirtiest of work, but somehow the profession has garnered a reputation for rip-offs. But where would you be without them? Where would your bathroom be?

And let’s be honest. We don’t schedule plumbing appointments months in advance. Plumbers are the ones we frantically call at 2 a.m., with water pooling up around our ankles and stolen hotel monogrammed towels strewed across the floor. We call plumbers mid meltdown, and somehow they have to explain the inner workings of our pumps and valves in plain English and jump to action before more damage is done.

Just because it’s a dirty job doesn’t mean its practitioners don’t deserve our respect—or our understanding. Here are nine things plumbers wish you, their clients, knew to clear the air—or the drains, so to speak.

Your drains are dirty. Really dirty. But that doesn’t mean you are.

People have no concept of what they’re flushing down the toilet. You probably assumed that it’s pretty gross down there, but if you’ve never watched someone snake your toilet or shower, it may surprise you just how gross it is. But that’s normal. The amount of muck pulled out of your drains isn’t a reflection of your cleanliness—or of your plumber’s skill. The least helpful thing you can do is remark on how appalling the bathroom looks mid renovation. They know, and it will get better. There’s nothing sexy about sewer lines, but when they don’t work, you sure notice it.

They’ll clean up after themselves—but not after you.

Even though the process might be messy, good plumbers will leave your home exactly as they found it. They want it to look just like it did when they got there. But that doesn’t mean they’ll clean up your messes. If they walk into a bathroom and there’s already sewage all over the bathroom, they will get the clog undone, but they don’t carry a full line of janitorial supplies on the truck. Most plumbers try to go above and beyond, but sometimes it’s gonna take a coat of paint and new flooring, not just cleaning to fix the space.

Don’t feel bad for calling late at night.

Plumbing is a 24-hour-a-day job, so no reputable plumber will be miffed by a midnight emergency. Call and they’ll answer. They don’t get mad. Sometimes they get the better jobs that way because you  couldn’t get anybody else.

Don’t overestimate your DIY abilities.

Unless you’re seriously handy, leave plumbing to professionals. Know your limits. Some people  don’t need a plumber. Some get the wrong tool, taking a small problem and making it a big problem because you shouldn’t have pried. That turns what could have been a quick fix and an easy job into a strenuous ordeal that could involve pulling up floorboards or tearing into your walls. Yes, sometimes you can save money. But wouldn’t you rather spend a small amount of money now than a huge amount later? Plumbers may have to deal with waste, but that doesn’t mean they like wastefulness. If your mechanical abilities are low, leave it alone.

Stick around or leave during the job—it doesn’t matter to them.

Don’t feel bad about hanging around while your plumber is working. Unless you are really grumpy, they don’t mind you watching. In fact, many plumbers prefer it if you stay—that way you can answer questions about the home in case an emergency arises.

Maintain your appliances.

Your home does not take care of itself, even if it’s new. Most water heaters require yearly maintenance, like flushing them out and checking the anode rod for corrosion. You should regularly check your water shut-off valve for corrosion, too. Some retail stores will perform that for you, but if yours doesn’t, don’t ignore your duties. Instructions are in the owner’s manual, but a lot of people don’t maintain the plumbing in their home. That can cut down its lifespan and cause issues down the line.

Don’t wait for a crisis.

Hear a faucet dripping or a toilet running? Got a small leak in the basement? Call your plumber now, before it becomes a major emergency and your basement floods—or something equally tragic happens. If proper maintenance occurs or full attention is paid, the problem won’t rise to that level. Be aware. Fixing a small problem is far easier on your wallet—and won’t require a major renovation.

Know your home.

Quick: Where’s your shut-off valve? If you don’t know, go find out now—you’ll save your plumber precious time if something goes wrong (and save your house from further water damage). That way, if there’s a leak, or you notice water spraying or not turning off, you have the ability to turn it off at the source.

Plumbing can be expensive.

But just because it’s expensive doesn’t mean it’s a rip-off. People don’t realize how expensive plumbing can be. It requires time, expertise, training, and materials to bring things up to code. While you should always get several estimates, don’t dismiss one just because it’s expensive. When you hire cheap plumbers, chances are good you’ll get what you pay for—and they won’t provide the same guaranteed service as pricier plumbers.

Not that price alone determines quality. Check reviews online and even the Better Business Bureau to make sure the plumber you’re hiring has the integrity and the ability to handle a situation if it escalates. In particular, make sure the plumber is licensed and insured. If uninsured plumbers were injured on your property they may be able to sue you for damages—and if they destroy your pipes while working on them, they could just skip town, leaving you to pay for yet another plumber to do the repairs.

Still Saving Your Tax Refund? Here’s How To Use It!

If you’ve started researching the home buying process, or you’ve already purchased a home in the past, you probably know one of the first things you need to consider is the size of the downpayment you are going to need to cover on the home you discover. While that down payment can vary depending on what type of financing you qualify for, it is never a bad idea to start saving as much possible, as soon as possible.

If you have tax refund money tucked away into savings – this would be the perfect opportunity to use that cash. With the average refund for this year around $3000, there is a good chance your tax refund, potentially paired with a additional savings, can put a major dent in your down payment.

With a competitive market that doesn’t seem to be cooling off anytime soon, now is the time to buy. Ensuring you have the proper funds to cover that downpayment once you find ‘the one’ can save you heartache in the future. Give me a call today and we can get you set up with a lender so you can get pre-approved and find out just how much you need to have saved!