23 NOVEMBER 2016 – You’ve likely thought about your dream home, and how it differs from your current residence. Perhaps your dream house is warm and cozy, with bedroom sizes that remind you of where you lived as a child. Or, maybe the house you imagine has a heated swimming pool and a wraparound porch made especially to enjoy summer evenings.
If certain bells and whistles are non-negotiables for you, then you might consider working with a builder to construct a home tailored to your family. Or, maybe you are looking at brand new homes because you’re tired of older amenities and properties in need of imminent updates. Whatever your rationale, make sure you meet the below criteria before committing yourself. Otherwise, it just might be wiser to look at one of the estimated 92 million existing homes in America as your next place to call home.
1. Have all the financial resources the new-build process requires. When the blueprints are at your fingertips, you are more likely to get everything you want. It comes with a price, though, so make sure you have the financial resources to accommodate the purchase. You should have 20 percent of the post-value of the home in cash or in compensating factors. In determining that amount, always account for building delays, change orders, sub-standard workmanship and layout mistakes.
Also, as the age-old adage goes, time is money, and purchasing a yet-to-be-constructed property involves a lot of time. At AMS, we liken it to a full-time job.
2. Be familiar with the ins and outs of buying this type of home. Research what goes into buying an existing home, and compare that process to that of a new build purchase. There are different contracts and costs associated with being the first owner of a property.
3. Line yourself up to gain an advantage. Think of your home for what it is: an investment. Smart homebuyers consider not only their wants, needs and preferences – but also those of future prospective owners. Most likely, you will one day sell this home to another buyer, so do everything you can to maximize its value. In addition to the home design, consider the location of the new build. Remember that homes in rural areas more often suffer in resale value, due to appraisal requirements and location.
Of course, there are advantages to being involved in the construction and design of such a huge asset. We encourage you to consider the above criteria in order to minimize the stress elements that inevitably come with buying any home.
Call AAFMAA Mortgage Services at 844-4-AAFMAA or email firstname.lastname@example.org for more in-depth advice and guidance.