30 Jun How to Buy a New Construction Home in Farmington…
Homes are springing up all over Farmington and Empire Township Minnesota! New Construction areas are humming with activity and there is a smile on the face of every tradesman I encounter! It is a great time to Buy a New Construction Home!
If you are searching for a new home in 2016 in Lakeville, Apple Valley, Farmington or Rosemount and finding the inventory level of homes for sale very low, it might be time to try New Construction.
Lot prices hit rock bottom in the winter of 2011 and by early Spring 2012 builders and developers were beginning to buy homesites because they were just such a good value. During this time the level of homes on the Active Market in the Twin Cities 13 county metro area plunged to record low levels. This low level of inventory and inexpensive lots has created the Perfect Storm for area builders!
Farmington New Construction Homes are not the only good values out there, new homes are now available in Apple Valley, Rosemount, Eagan and Lakeville too. There is a mix of builders including large national chains and smaller, local builders.
New Homes are usually priced higher than a comparable existing homes, this reflects the extra value of a new home. Those extra values include brand new systems including heating, AC, roofing, plumbing, and all appliances. Another reason New Homes are priced higher than existing homes is the updated Style, Modern Colors, Trendy Features and Construction Method improvements.
I have shown many homes to buyers which were completely updated from the Seller’s perspective, but the Buyer’s still sited the home as feeling ‘dated’. How can this be? The difference which attracts so many buyers to New Construction homes is sometimes tough to perceive.
Many existing homes are nicely updated, very well constructed and beautifully maintained. Some Sellers of existing homes have replaced cabinetry, counter tops, carpeting, paint, light fixtures, furnaces, roofs, siding, landscaping, decks and more, only to be informed by their Listing Agent that Buyer’s think the home feels ‘dated’.
I believe Buyers who prefer new construction homes are reacting to some items which Sellers of existing homes cannot change or update. Ceiling heights, the amount of glass space vs. wall space, (window sizes) less interior walls dividing the living space, taller cabinets, more recessed lighting, more open staircases with windows, and larger closets are some of the items which cannot easily be changed, even in homes which are rightfully called ‘updated’.
If you prefer the Style of a New Construction Home, start now to investigate your options! Prices on lots have already risen in the past 6 months and the prices of New Homes is beginning to strengthen too.
Waiting for your current home, especially if it is an older home, to move up in value before you Buy a New Construction Home isn’t a wise financial choice. While your current home appreciates in the next few years, prices of New Homes will also be rising, likely at a faster pace than your existing home.
Stop by the New Construction Homes and see the new trends, then obtain a good market analysis of your home to see if now is the right time to act. Be sure to read the post, 4 Reasons Buyers are Purchasing New Construction Homes in Lakeville.
The new Construction Market can be tough to navigate, it’s extremely challenging to purchase a $350,000 item that does not yet exist! We must make sure the vision which is in the Buyer’s mind can be clearly defined and articulated so the Builder can create the exact product desired.
This is much easier said than done. Be sure to work with a Realtor of your choice who is experienced in helping clients build a home and is aware of the common pitfalls. New Home purchases involve so much more negotiation than a standard purchase agreement, everything from the amount of Earnest Money, where the deposit will be held, the price of upgrades, amount of landscaping included and more is open to negotiation these days.
After all the pain and destruction of the recent Real Estate market, it’s wonderful to witness so many Clients truly getting the Buy of a Lifetime in a brand new home. Call or email me for specific details about neighborhoods, available lots or new construction pricing. You can also request a quick online Market Analysis here.
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