STEPS TO PURCHASING A NEWLY BUILT HOME
Each transaction is unique, a new home could take 3–6+ months to build, but typically it’s around 4 months. Some of the factors that determine the length of time include the permitting process, the speed of municipal inspections, the composition of the lot, and the type of financing.
1. A buyer discovers and chooses a new home plan in a subdivision that has everything they are looking for. Through our visual marketing process they will be able to see what the home will look and feel like and determine the total expense.
2. Once a buyer is pre-qualified, a meeting between the Buyer and Seller to discuss the buyers wants and needs is a good way to see if a transaction is possible.
3. Buyers and Builders will often meet on-site to choose a lot and discuss where the home will be placed.
4. Once a home style, lot and price are agreed upon, a Purchase and Sale Agreement is signed. The terms of the sale and timing of the construction are dictated in the contract.
5. If a buyer is financing a home, this will begin the bank’s due diligence period in order for a buyer to secure financing. This will include a detailed review of the contract, an appraisal, and a title search, as well as a much more in-depth look into the buyers financial situation. The result of the due diligence period is a loan commitment letter. In general, a builder will require a loan commitment and 5–10% of the total purchase price before starting construction.
6. Once financing is secure, a builder will submit for permits in order to start the construction of the home. This may include septic design, foundation, well, and driveway, depending on the municipality.
7. Foundation: 2 weeks
8. Framing roofing, siding, doors, and windows: 2–3 weeks
9. Tradesmen work — electrical, plumbing, and HVAC. Buyers can choose location of outlets, lights, phone and cable access at this point: 2–3 weeks
10. Sheetrock: 2–3 weeks
11. Flooring: 1–2 weeks
12. Painting, mill/trim work
13. Cabinetry, countertops, and fixtures: 2 weeks
14. Finishing — Exterior work, paving, lawn, and landscaping
15. New home closing day!