The luxury housing market is experiencing some exciting conditions across the country. Existing homes for sale are staying low and dynamic, and custom home builders are being employed more than any other time in recent years. Usually when new home construction is up, existing homes won’t sell as much; but this is not the case. Due to a steadily rebounding housing market and low interest rates, the market is poised for massive growth.
Sadly, unscrupulous builders are seeking to take the opportunity of this dynamic market to trick potential buyers with poorly built, inefficient models at low prices. The question becomes; when browsing the housing market, how can an inexperienced buyer tell if he or she is getting the best deal possible? We’ve prepared a breakdown of a few indicators to judge the integrity of a luxury home for sale, and the custom home builder who built it.
First of all, a clearly undercut price will seem appealing, but it should be an immediate red flag. While some are true, there ARE great deals out there on brand new homes just waiting to get picked up; mostly, homes are selling closest to their actual value, not beneath it. The reason why home buying hasn’t slowed down is because interest rates are lower than they’ve ever been on loans, making for an almost simultaneous buyers AND sellers market.
If you’ve been offered a too-good-to-be-true deal, visit the home a second time with an appraiser. Great deals do exist, but in the current market conditions an undercut may just be a cheap ploy to trick you.
The Home Builder
So much of the quality of a new home comes from the home builder themselves. If you’re unsure about a home, ask to speak to the home builder. If they’re proud of the work they did, the home builder will be happy to answer any questions you have concerning their past projects. Ask them questions and feel in your gut how they respond. Your instincts and comfort will be helpful.
If you’re hiring the custom home builder to build a home for you, make sure that everything is recorded on paper. Discuss timetables, prices, and liabilities, and organize it all onto an itemized contract. Do these before you sign anything, and take time to have a trusted lawyer go over your contract with you as well.
Nowadays environmentally friendly building is a preferred choice by many home buyers. Green building can be more expensive than building to local building codes, but these materials reduce harmful VOCs in the newly built home and have a positive environmental impact.
ENERGY Star products can save on electricity and cut energy consumption. These products are a great investment early on that can save money in the long run. New home builders that understand this investment are not only current in their industry; they are looking to support you with quality products long after you’ve purchased the home.
Past Home Buyers
The best resource for new home buyers is past customers. If you are serious about purchasing a particular custom home, then get acquainted with the community. Research the location and talk to current residents. The experiences of past customers, positive or negative, will give you insight into the work of the home builder.
Keep your eyes open, don’t be swayed by the price, and don’t be afraid to ask questions. In the current market, homes are moving fast. Make sure you have the skills and knowledge to not miss out on your dream home by following our tips for finding the best new homes for sale.