If you were wondering “how to build a home?” you landed at the right place. Lange Real Estate is a unique brokerage that specializes in developments (both commercial and residential) with areas to build in West Wichita, Derby, and more.
We simplified the home building process in 8 easy steps and attached this week’s Client Corner with Logan Pote below.
Step 1: Find a buyers agent for new construction
Having an agent puts a professional in your corner to look out for your best interests, negotiate on your behalf, and help answer questions you may have throughout the process.
Step 2: Research neighborhoods
Research neighborhoods and understand the specials, taxes, HOA, and amenities to find a place that fits you best! Some have pre-determined floor plans, and others you can choose totally custom. Get with your agent to find the best area for you.
Step 3: Get Financing in Place
Financing a new construction home is similar to buying a home that’s already existing. With new builds, you will have to be more mindful of timing. Your mortgage lender won’t allow you to close on a new construction home until it is complete and you have your certificate of occupancy.
Step 4: Choose Your Builder
Once you have your team on your side (agent and lender), the next step is to find your builder. The type of builder and neighborhood you choose should depend on if you want to build custom or base your decisions on pre-determined floor plans.
Step 5: Negotiate terms and updates with your builder
When you’re ready, your agent will put together an offer for the home. With new construction, you will usually sign a builder contract instead of the standard purchase agreement. The contract outlines the terms between builder and buyer, including what will be built, how much is to be paid, and the completion date!
Usually, when you see a price advertised for a new construction property, it’s the base price with builder-grade flooring and finishes. If you want custom finishes beyond what is included in the base price, that will likely come at an extra cost.
Step 6: Start the construction process
After terms are negotiated and decided upon, it will be time to hand in your earnest money deposit and officially start the construction process. This will be broken down into several phases and you will get a chance to see the progress after each phase is complete.
Step 7: Inspections, Repairs, and Appraisal
Once construction is complete, it’s important to do your due diligence and get inspections. The inspector will check out the interior, exterior, electrical systems, outlets, fixtures, etc. If anything falls short of what it should be, your agent will review any fixes with the builder and help find a solution. An appraisal will be ordered by your lender and you will need to verify that the new home is up to local building codes.
Step 8: Closing
After inspections and appraisals are complete, you will receive your certificate of occupancy and finally head to closing! You and your agent will review all the paperwork and sign the documents. You will bring a check for closing and officially be a homeowner!
As always, visit LangeRE.com to connect with us and ask any of your real estate questions.