I recently spoke with Joey Rose, a builder representative from K. Hovnanian. We talked about the process of buying a newly constructed home, and why he believes it’s a better choice when compared with a resale. Joey let us know all the details about what to expect while waiting for your brand new home.
Advantages of new construction over a resale.
First, when you’re building new, you get to choose from several different house types the builder offers. For example, in the community where I sell, we offer six different house types to choose from, and then you can also pick your lot. With each house type, there will be options that you can modify. So you can customize the home you choose based on a list of pre-selected options. Another huge advantage of new construction is choosing your interior design details. For instance, you could choose between dark or light floors, granite or quartz countertops, or between different cabinet finishes. And, you can make your choices before we start building your house. Doing things this way, you don’t need to spend $90,000 on a renovation. With new construction, you also get a warranty, (depending on the builder.) K. Hovnanian Homes, for example, offers a five-year structural warranty, so if there are any issues with the foundation of your home, it’s covered for any repairs needed. They also offer a two-year mechanical warranty which covers your plumbing, HVAC, and electrical. Then, you also get an all-encompassing warranty for one year.
But… what if something breaks?
- Buying a used home or resale is full of unknowns.
You can, and should get a home inspection done. But, even with that, you can move in, and you’re on the hook for all repairs that may come up. Let’s say your water heater goes out. Well, that could cost you $10,000. If your heating or AC goes out, that could be thousands of dollars more. And it’s all paid out of pocket.
- Buying a new home, you’re covered.
With a new home, you get brand new appliances. And, if there are any issues with them – they’re covered.
How do I know if my home is well-built?
- With resale, you don’t know what’s inside those walls, and you don’t really know what the construction quality was like. You could have major issues behind the walls in a resale, and you’d never know until there’s a problem.
- With new construction, we invite the purchaser onto the property before the drywall is put up so you can see the build quality behind the walls. You’ll know exactly what you’re getting. And, with K. Hovnanian Homes, you don’t have to get an inspection because our construction manager is performing inspections the entire time your house is being built.
How long does it all take?
The time it will take for construction will depend on the particular house you choose. At the States of Chancellorsville where I sell now, we have well and septic to do, so things take a little bit longer, so it’s about a four and a half month build time.
What is the process like?
When you write an offer, there’s a process to follow from “contract to keys.” After you choose your house, you’ll sign the contract. You’ll also need to pay an earnest money deposit, which varies from one community to another. On average, it’s about $15,000. That money goes back towards the purchase of your house. It remains the buyer’s money. It’s not a fee – it’s credited towards either your closing costs or your down payment. It’s just a way for the buyer to say they’re serious about moving forward with the process of building a house that may be over half a million dollars. Then, you fill out the application with a preferred lender.
Next, you’ll hear from the home design gallery. That’s the fun part! It’s where you get to choose your flooring, cabinets, countertops, and some of the light fixtures. All those personal little touches that make it your house. During that process, they will submit for permits. When the permits come back, it’s time for a pre-construction meeting. That’s when everyone sits down and you’ll meet with the construction manager. We review the options you chose one final time, and then the construction of your house begins. The buyers are allowed to drive by their soon-to-be home as it’s going up. When you come by for a visit, you’ll need to let us know when you’re coming ahead of time. When you’re here, we ask that you wear a hard hat and close-toed shoes. Watching the process is exciting for everyone involved!
Towards the end of the construction, you’ll do a final walkthrough, generally about a week before closing. This is when you would point out anything you see that needs to be taken care of throughout the house. Then, on the day of closing, you come back out, walk through the house, and make sure everything you noticed was taken care of. Then, you drive to the title company, sign the paperwork, and get your keys, which is the most exciting part.
Will you paint the inside of my house?
When it comes to painting the interior of a newly constructed home, your new home will be painted with a very nice neutral color throughout the entire home. We recommend you choose your own colors and paint your new house when you move in. It’s much easier to paint before you have a lot of furniture in the house.
Are there new homes I can buy that are already built?
Yes, a quick delivery home happens when a builder knows they need to get X amount of closings each year. Here in Northern Virginia, they know that there are a lot of people in the military, a lot of VA buyers who want to buy here and will get relocated here. So quick delivery homes happen at certain times throughout the year. We also call these spec houses, and usually, the sales rep will put together a house and choose the structural options and some nice design gallery options, and it gets built.
The Give Back Team of Coldwell Banker Elite is a team of full-service realtors in Virginia, that does more than just assist clients with their home selling and buying needs. We also give back to the local community, and to the charity of our clients choice after each closing. Giving back to our community means we’re a part of something bigger, deeper, and longer-lasting. So, whether you’re a first-time homebuyer, a seasoned investor, or relocating to a new area, each client receives the individual attention they deserve. The Give Back Team of Coldwell Banker Elite is a team of like-minded people, seeing the big picture, with big hearts. We give back one closing at a time.