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To Build or Not to Build?

Recently I was asked by a Buyer Client the details of building a custom home. We have been looking at custom new construction and bank owned new construction homes in the Southern Wake area as we patiently wait for their existing home to sell. While there are some beautiful homes out there and some fantastic deals, not any one home stood out as having everything they would like in their new home.

A pre-sale (contracting with a builder to build a specific custom home for you) is a great option when:

1. There is no standing inventory that you love.

2.  You know you want to live in this home for awhile.

3.   You would like to customize your features as much as possible.

Because the builder is going to build a house just for you he will most likely require a non-refundable deposit (credit towards the purchase price at closing) because he is at a little bit of a risk if you do not end up closing on the house. The builder will also base costs on current construction prices, which may be higher or lower, than were used for existing inventory.

Banks and Mortgage companies are starting to offer Construction to Permanent loans again, which takes some risk off the builder. In this situation the Buyer applies for the construction loan and at time of completion of the home the lender converts the construction loan to a mortgage.

There are many beautiful lots available in the area, some at deep discounts and even bank owned. We have worked with many custom builders and will be happy to help you find a lot, plan, and builder to build your dream home!

Welcome Home, laura

Filed under: Tips for Buyers
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