Could a New Construction Home Be a
Home Buying Option For You?
(Lincoln-Way - Chicagoland Area)
These days, it's not uncommon to hear my Borrowers express frustration regarding the market's current housing inventory and the challenges it presents ...
Many of my clients have found themselves facing multiple-offer situations on homes they've viewed and wished to buy. They've eventually lost out to another Buyer's bid on those homes. That's a tough situation to be in.
Because of this, I'm seeing new construction homes enter into my Borrower's consideration increasingly often ...
Every housing market has its own prime buying/selling season. Here in Chicagoland and the Midwest, weather can influence sales activity ... and weather dictates that spring through fall is the most active season for new construction.
Right now, favorable weather has many contractors breaking ground on new homes within the "Lincoln-Way Area", (Manhattan, New Lenox, Mokena, Frankfort) and elsewhere across Will County. New homes are popping up everywhere again.
This renewed construction activity has added to the current inventory of homes and broadened the housing search for many of my newest home buying clients. That's good news.
Besides increasing availability, other positive factors of this new construction are:
- These homes can often be "semi-customized"
- Spec Homes are once again included in the housing market and being offered via Builders
- These homes offer the latest home features, floor layouts, energy efficiency, safety features, and technology
- New homes demand fewer repairs and maintenance
- Warranties accompany new construction (typically one-year)
- These homes are often located in subdivisions offering community amenities (pools, walking/biking trails, clubhouses, parks, schools, etc.)
Why? The process of buying a new construction home is different from buying an older existing home.
In order to secure the best home and deal for themselves, Buyers need to be aware ... and educate themselves to ... the new construction process. They need to do their homework before signing any Contract to buy.
First and foremost: Buyers need an advocate working on their behalf when purchasing a new construction home. Choosing a Buyer's Agent.
Buyers should remember these 5 important facts when seeking and choosing a Buyer's Agent:
- The Buyer's Agent chosen should be experienced and knowledgeable in the new construction process
- The Buyer's Agent should know the local housing market in which the purchase will be made
- Buyer's Agent should accompany their Buyers during any new construction home viewings and negotiations
- In today's construction environment: Most building sites in the Will County - Chicagoland area, are created and owned by Developers/Builders. They market and sell their products from Model Homes. The Sales Representative found within the builder's model works for the Builder. They assist Buyers with building choices, etc., but at the end of the day, their loyalty (and paycheck) is paid for by the Builder.
- A Buyer does NOT pay the commission of the Buyer's Agent. Sellers/Builders pay commission fees.
An experienced Buyer's Agent can guide and assist regarding:
- Choice of Builder
- Housing Market (Lot, location, neighborhood, etc.)
- Down Payment - Earnest Money needed
- Contract and negotiations with the Builder (Purchase Price, Building Options, Upgrades, Modifications to the home)
- Educate Buyers regarding future Tax Bills
- Financing options available/Lender comparisons
- Securing a favorable Closing Date
- Any disputes that may arise with the Builder
The Homeowner/Buyer must secure (and provide proof of) traditional Mortgage financing, according to the agreed-upon Sales Price. (That is where I come in and assist in the process.)
When the home is completed, the Final Occupancy Permit is executed. The Builder sells the home outright to the Buyer and the Closing is performed.
New construction can be a good viable choice for Buyers looking to buy in a low inventory housing market. It can also be a very exciting home buying option.
But don't let excitement and emotions blind you ...
Take the time to ask questions. Seek experienced knowledgeable professionals (agent and Lender) to assist you. Educate yourself thoroughly.
It is well worth it. You'll have a great home in a great location that will bring you joy and serve you well for years to come ...
Hoping to Buy an existing or new construction home in New Lenox or elsewhere in the Chicagoland area? Refinance? Contact me! I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
I'm easily found at:
Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI License #216987
American Portfolio Mortgage Corp.
Cell or Text: 708.921.6331
Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:
Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago
and the greater Chicagoland region, including:
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena,
Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook,
Romeoville, Naperville, etc.), DuPage County, the City of Chicago,
Cook County, and elsewhere within IL & WI.
Referrals are Welcomed!