5 Things You Should Know About New Home Construction
Brendan DeSimone | Zillow Blog | October 18, 2013 | link
It’s not ‘new news’ that the real estate market has picked up in many parts of the country. Though lots of buyers are out shopping, inventory is still low. Nobody can predict when that situation will improve, of course. But large national home builders, as well as small local ones, are buying up land, getting plans drawn up, and starting construction on new homes.
But is a new-construction home the right path for you? Here are five things you should keep in mind.
1. New homes may not be listed in your local MLS.
Unlike a regular seller who lists their home with a local real estate agent, homebuilders often have their own employees working for them on site. They do this to have more control and to cut costs.
What does this mean for you, a buyer? Mostly, it may mean the home builder isn’t a member of the local MLS. As a result, the homes may not show up in your agent’s MLS search. The builder may be more apt to advertise online, in the paper or with billboards. So if you’re interested in newly built homes, work with your agent to make sure you’ve identified all the possibilities. (Note: Zillow has listings for new construction homes. Just choose “New Homes” in the search filter.)
2. New homes are often sold before they’re built.
A builder will generally get financing lined up and map out both a construction and a sales process. This means they’ll try to sell as many homes as possible, before they’re even built. To accomplish this, they’ll build out model homes and allow buyers to go in and review floor plans, fixtures and finishes while the homes are under construction. Depending on the state, builders need to get through some of the approvals process before they can actually start signing contracts.