Friday, 15 December 2017

Buying a Presale or a Speculative Home at an Early Stage of Construction Makes Sense!

Written by Posted On Saturday, 23 September 2017 23:15

There are many reasons why purchasing an unfinished new home is a smart way to buy. When you buy a presale home you typically get to choose your own home design, paint colors, carpet, flooring, and select upgrade features that fit your budget. These choices are generally subject to a standard builder’s allowance so home buyers usually choose only the items that they consider important.

When you purchase a speculative home at or before framing stage you can usually get the same choices as with a presale, except the home design because the speculative home would already be under construction.

Building a presale can be challenging and somewhat complicated but it does not have to be. In most cases, a presale home is usually a builder’s standard house plan that has been modified to fit the personal choices of the buyers. There are some hidden advantages when you choose a standard design that can be modified to suit your individual tastes. The hidden advantages are the home builder has probably built the design before therefore knows the costs. In addition, the builder’s subcontractors and material suppliers are familiar with the design and will usually present the builder with very competitive bids for labor or materials.

Finding your own building site is not recommended because there are many potential problems with purchasing vacant land. It is easier and safer to buy a presale home from a home builder or qualified real estate broker that are experienced in the purchase or sale of building sites. As professionals, they should be able to locate the right site for your particular home design in a location that fits your family needs.

Getting Organized to Buy a Presale or Speculative Home Early

When you are buying a house before it is started, in the case of a presale, or right after the foundation is poured, in the case of a speculative home, you need to do some homework. The homework includes getting organized by finding a qualified real estate broker you can work with. It is ideal if you can find a real estate professional who knows how to communicate with you and, also, knows how to communicate with home builders. A qualified broker can represent your interests, present you with helpful information on the builder, and any building sites available.

It is important to obtain information about the home builder you want to build your new house. Things like the builder’s history, his standard structural and finish construction details, location of model homes, photos of exterior and interior features, and a material suppliers list are just some of the items you should get.

One main reason why you need to get organized early is to be prepared for an early presale meeting with your home builder. It is common in a presale meeting for the home buyer prospects, real estate professional, and home builder to meet to communicate and finalize any details or changes prior to signing of a Purchase & Sale Agreement with supporting documentation. One point to remember is that any possible options you might want in your new house should be listed and provided to your home builder or real estate professional two weeks before your scheduled presale meeting. The reason for this is to give your home builder the necessary time to cost out your options so he can provide you with the actual cost of the change or upgrade.

Most of the time, new home buyers have a certain budget and only choose the items that they consider important. This means some possible options on your list will probably be eliminated and never added into the home.

There are many other concepts, useful tips, and low cost ways to upgrade your new house that cannot be covered in this article. A guide book of all of things to know when buying an unfinished home are included in a new book designed for home buyers, real estate brokers, home builders, and construction lenders. Title of the book is Presale Home Concepts 101 which is available online at Amazon or Barnes & Noble.

Comments or questions on this article or requests for additional information should be addressed to dunlapd@comcast.

There are many reasons why purchasing an unfinished new home is a smart way to buy. When you buy a presale home you typically get to choose your own home design, paint colors, carpet, flooring, and select upgrade features that fit your budget. These choices are generally subject to a standard builder’s allowance so home buyers usually choose only the items that they consider important.

When you purchase a speculative home at or before framing stage you can usually get the same choices as with a presale, except the home design because the speculative home would already be under construction.

Building a presale can be challenging and somewhat complicated but it does not have to be. In most cases, a presale home is usually a builder’s standard house plan that has been modified to fit the personal choices of the buyers. There are some hidden advantages when you choose a standard design that can be modified to suit your individual tastes. The hidden advantages are the home builder has probably built the design before therefore knows the costs. In addition, the builder’s subcontractors and material suppliers are familiar with the design and will usually present the builder with very competitive bids for labor or materials.

Finding your own building site is not recommended because there are many potential problems with purchasing vacant land. It is easier and safer to buy a presale home from a home builder or qualified real estate broker that are experienced in the purchase or sale of building sites. As professionals, they should be able to locate the right site for your particular home design in a location that fits your family needs.

Getting Organized to Buy a Presale or Speculative Home Early

When you are buying a house before it is started, in the case of a presale, or right after the foundation is poured, in the case of a speculative home, you need to do some homework. The homework includes getting organized by finding a qualified real estate broker you can work with. It is ideal if you can find a real estate professional who knows how to communicate with you and, also, knows how to communicate with home builders. A qualified broker can represent your interests, present you with helpful information on the builder, and any building sites available.

It is important to obtain information about the home builder you want to build your new house. Things like the builder’s history, his standard structural and finish construction details, location of model homes, photos of exterior and interior features, and a material suppliers list are just some of the items you should get.

One main reason why you need to get organized early is to be prepared for an early presale meeting with your home builder. It is common in a presale meeting for the home buyer prospects, real estate professional, and home builder to meet to communicate and finalize any details or changes prior to signing of a Purchase & Sale Agreement with supporting documentation. One point to remember is that any possible options you might want in your new house should be listed and provided to your home builder or real estate professional two weeks before your scheduled presale meeting. The reason for this is to give your home builder the necessary time to cost out your options so he can provide you with the actual cost of the change or upgrade.

Most of the time, new home buyers have a certain budget and only choose the items that they consider important. This means some possible options on your list will probably be eliminated and never added into the home.

There are many other concepts, useful tips, and low cost ways to upgrade your new house that cannot be covered in this article. A guide book of all of things to know when buying an unfinished home are included in a new book designed for home buyers, real estate brokers, home builders, and construction lenders. Title of the book is Presale Home Concepts 101 which is available online at Amazon or Barnes & Noble.

Comments or questions on this article or requests for additional information should be addressed to dunlapd@comcast.

 

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