As the northern Colorado housing market continues to offer limited opportunities, some buyers are turning to new construction.
Where do you start?
Before visiting model homes, your first step is to meet with a lender to determine the purchase price and loan amount for which you qualify. While many builders offer allowances for closing costs or design upgrades in exchange for working with their preferred lenders, the choice of lenders is yours.
Time to shop!
It’s fun to visit model homes! Focus on new home neighborhoods that fit your approved price range and preferred location. When you visit a model home, you will be talking with a sales associate that represents the builder. Some builders require that you be accompanied by your agent to assist you in the purchase process .
Model homes are built to WOW! Upgrades add to the cost of the home so you’ll want to know what materials and fixtures are standard.
Neighborhood details vary. How large are the lots and is fencing allowed? Is there a Homeowner’s Association? What are the amenities such as walking trails or parks? What are the neighborhood schools? Are future developments planned for the surrounding area?
Who is your builder?
Learn about the builder’s qualifications. Talk to current homeowners about their experience and search online for reviews and news articles.
Write a contract!
The builder’s sales rep will complete the contract with you, which is different from the contract used for the sale of an existing home. If applicable, you will also discuss the time frame for listing and selling your present home.
Your new home may take a few months to complete, if it’s already under construction, or 6-8 months for a home that is not yet started. You will have opportunities to visit your new home while it’s built.
The finish line!
The last few weeks before closing are a busy time! Your lender will update and finalize your loan approval and determine the amount of cash you need for closing. An independent inspection of your home might be done. Before closing, you will walk through the home with the builder to review the operating systems, the home warranty, and check for any minor items that need attention.
Finally, closing documents are signed, and you have the keys to your new home! If your dream home is a custom build, that’s yet another process.
Source: Redfin, Dana Spanjer with Spanjer Homes