If you’re building a new home (maybe your dream home) with a production builder, it’s easy to get excited about your structural changes and design options! There are so many design selections and upgrades to choose from at the builder’s design center. Here are some helpful when going about with your new construction home.
Be careful you don’t go overboard on selections so much that you price yourself out of the neighborhood comps, particularly if you’re financing the home purchase. Adding too many high-end features and selections could cause your contract price to be higher than the appraised market value of your home. If your new construction home appraises for lower than the contract price, you, the buyer may need to pay the difference out of pocket, OR attempt to negotiate a lower price with the builder (which maybe difficult on a personally-designed home)
A realtor that is knowledgeable and familiar with the area’s housing market, experienced in evaluating comparables and has an eye for design can help guide you, keep your selections in line, and/or help negotiate design allowances so you may avoid this problem.
With market fluctuations and interest rate changes, this is especially important.
If you are interested in getting help with your new construction home or need help in any way with your home buying experience, please feel free to reach out and schedule a call with me today!