Have you been thinking about building a new home? Are you worried that you may not know enough about home construction? If so, you should consider hiring a licensed home builder. You do not need to use an agent to purchase new home construction personally; however, you may. And when you go to a new home construction showroom or meet a home builder at a model house, you are more likely to come across a professional salesperson who the developer has hired to sell homes in that particular community.
Homebuilders that offer sales and/or financing for new homes include many of the same builders that provide remodeling services, such as New Construction Homes in CT. The builders are well-known for their high standards, and they are also known for providing a wide variety of designs for new homes. Some are family builders that have been in business for over one hundred years. Other new subdivisions may still be under the jurisdiction of a builder with which they are associated. Still, other builders offer only new home construction.
There are many new home construction differences from remodeling or renovation, although there are some common elements. New homes tend to be larger than older construction. They are generally placed on plots of land with an average floor area of 90 square feet. (The square footage does not need to be the total floor area, as the average floor area is used in determining prices.)
Most new home construction involves builders who own lots of lands and use lots of materials. They are referred to as parcel builders. Many lenders require builders to submit building permits for most of their projects, though they may not be required to obtain financing. The lenders are the ones who usually make the final decisions about the type of materials used, the number of bedrooms, bathrooms, and kitchen spaces, the size of the Lot, the number of driveways and garages, and other specifications.
Most new builders will begin by submitting plans for the construction phase, including elevations, exterior finishes, doors and windows, carpeting, fixtures, upgrades to mechanical systems, and a ground-work inspection. After the plans are approved by the lender, the contractors, sub-contractors, masons, workers, and subcontractors will start working. Many builders will add new floors, ceilings, walls, doors, and windows. Upgrades and additions to the building include heating, plumbing, electrical, roofing, landscaping, painting, flooring, cabinets, furniture, cabinets, countertops, appliances, vents, siding, crown moldings, doors, fences, and porches. Sometimes the builder will add additions later at additional costs.
When a new home construction project is initiated, the lender or builder must obtain pre-approval from the appropriate regional authority to complete the new construction. This pre-approval process helps to protect the lender in terms of obtaining the loan and guarantee that the new construction conforms to local and state codes. This step also helps the builder obtain needed permits and inspections from the local Building Inspection Department. All permits for new construction must be obtained from the city, county, and state unless the specific requirements have already been met.
Once all the permits and inspections have been obtained, the builders then approach the lender for a loan commitment. Most lenders require a deposit to cover all costs and financing as well as the down payment. Some lenders allow only a down payment, while others require full payment to complete the new home. Once construction has begun and the foundation is finished, the lender will review the progress and any future repairs that will need to be made. If any major repairs require outside assistance, the contractor will be brought in to handle this part of the job.
Once the new construction is completed and the lender approves the construction, the builder may then approach the seller to begin the selling process. In many cases, builders will offer the new home for sale at a discount to recoup their investment and allow additional room or upgrades to be included in the final price. Commonly, builders will offer significant discounts to buyers who purchase homes below their true market value. New home builders are known to offer these discounts to buyers that qualify for loan modifications or to buyers with good credit.