10 Feb 3 Things to know before you Build a New Home in Farmington MN
There are 3 Things to know before you Build a New Home in Farmington MN!
Building a Custom Home is a dream come true for many families. Selecting the location, lot, floor plan, finishes and special custom details makes the home truly unique and best suited to your family.
There is another reason many buyers will decide to Build a Home in Farmington, Lakeville and Rosemount this year, it’s total lack of inventory of homes for sale. The number of homes for sale in the Entire Metro area is considered balanced when we have 22,000-24,000 properties for sale in our MLS, including the 13 country metro. Today the total properties for sale in the 13 County Metro is just 10,502. For more details on the shortage of inventory, read my post, Low Inventory of Homes for Sale, What it Means for You!
Here are 3 of the things I believe you should know before you build a new home in Farmington MN:
1. Now is a great time to act! The interest rates are still so very low, with most buyers able to secure a rate of about 4.625% for a 30 year fixed mortgage. This of course changes on a near daily basis, so please understand there is no guarantee and rates can be slightly different for each buyer based on down payment and credit scores. Everything I read this year is pointing to the likelyhood of interest rates going up during 2014.
2. There are only a handful of active neighborhoods! When I query the MLS for all single family models, completed new construction or homes currently under construction in Farmington as of the date of writing this post, there are 31 properties. It’s important to note that only 14 of these properties actually exist while 17 of them are called too-be-builts, which is really still a vacant lot priced with style and size of a new home a builder is willing to build on that lot. These properties are spread out in only 5 neighborhoods. The include 23 Listings in Mystic Meadows, 3 listings in Hometown, 2 Listings in Vermillion Trail, 1 in Providence and 1 in Parkview Ponds.
Mystic Meadows is truly the happening place for New Construction Homes in Farmington for 2014!
3. Land is going fast and will likely sell out soon! Lots of Land in the Mystic Meadows Neighborhood is on ‘Hold’ from the various builders. This can easily give you, the buyer. the impression that in order to build on one of those lots, you must use the Builder who has the lot on hold. That’s not necessarily true, it is often possible for the builder you wish to use to bump a hold, obtain the lot you like and create your Dream Home! There are a few more lots that I know of, a few small cul-de-sacs and lots tucked here and there, but none of those are currently represented on the MLS and they can be tough to find.
There are 9 Different Builders in that group of 31 Houses on the MLS….
There really isn’t any other land being developed right now in Farmington, at least not on a big scale basis like the previous Parkview Ponds and Mystic Meadows. I think we’ll see a real shortage of developed lots in the next 1-2 years for building, this will put added pressure on the already low inventory and prices for New Construction will continue to rise. Read my post about the Rising Cost of New Construction Homes too.
If you would like to Build a New Home in Farmington MN this year and you still own a home or townhome and need to sell it, now is the best time to get a market analysis done, explore your financing options and tackle the nitty gritty process of selling your current property. You can click here to get a Virtual Market Analysis from me, or we can Schedule an In Home Market Analysis.
Stop by Hebert Homes in Mystic Meadows this Spring, they currently have 3 New Homes ready for purchase. The ‘Cecilia’ is a 2350 square foot 2-Story listed for $349,900, the ‘Gina’ is a 2650 squre foot 2-Story listed for $375,000 and the ‘Andrea’ is their 2650 square foot Rambler listed for $385,000 with a finished walkout basement. I’m there on Sat and Sun from 12-4pm and I’d love to meet you and share more information about the building process.
For more information feel free to give me a call at 612-889-6496 or email to [email protected], I always look forward to hearing from you!