NEW CONSTRUCTION GUIDE
ULTIMATE
What is a new construction Home?
New construction home is a newly built " spec " home. Typically, the home is built according to a floor plan owned by a builder. Everything in the home is brand new.
What is the difference between a new build, custom home, and a "flip"?
A new build is not a custom home or a flip. A new build typically has minimal customization, especially in 2021 and 2022. Due to the extreme materials cost increase and delays due to the COVID 19 Pandemic, builders are no longer offering clients the ability to make selections. They must order all materials immediately upon planning a build. Windows, for example, require a 26 week lead time right now. A new build is also not a flip home. A flip home is a full renovation of an existing home. While many features of the home may be new, many of the building materials, electrical, and plumbing are not replaced.
How do I finance a new build?
Financing on a new build works very similarly to purchasing an existing home. You can use your VA loan, FHA, Conventional, or cash to buy a new build. On spec built, new construction homes, the builder owns the land outright and sells both the home and land to you together in one loan with one closing and one mortgage.
When do I start paying for my new build?
You do not begin mortgage payments on a newly built home until you have closed on the home. Closing occurs once the home is complete, inspections are complete, the appraisal has happened, and there is a certificate of occupancy on the home. At this time, you sign closing documents to purchase the home, your lender funds the loan, you record and are the deed owner of the home. Your mortgage then begins.
Determining if a new build is right for you can be tricky. Here are some benefits of a new build home: Everything is brand new and not in need of repairs You pay sticker price, not usually over asking builder warranty covers most things for 1-year floorplans are modern and functionally easy to heat/cool homeowner insurance benefits minimal risk of allergens and mold upon move-in blank slate you can customize. Here are some drawbacks of a new build home: Minimal "character" No "deals", builder. price to maximize profit construction site until the end of build phases. Amenities are not always complete delays. Price increases during the build process as material cost rises. Can't see finished product until complete.
Is it a new build right for me?
Ready to buy new construction? Step 1 Get Pre-Approved get set up on a search according to your timeline and budget, pick your top homes, and schedule a land/construction tour. Step 2 Offer/Acceptance, Pay Builder Deposit, Sign Addendums, and Purchase Agreement. Step 3 Build home Choose any selections allowed, Inspection/Appraisal, blue tape Walkthrough, and Final Walkthrough Close
Choose a build ready 60 days before you report (still meet 60 days VA occupancy rule if you close early) Find temporary housing and storage just in case Expect delays Delays 1. 2. 3. Most Common Roadblocks: Delays, Price Increases, and Build Changes Solutions Do not buy at the top of your budget Increases range from $10,000- 40,000 Be prepared with a "walk-away" number Price Increases 1. 2. 3. Understand the builder can make floorplan changes if needed Be willing to be flexible Most changes are due to elevation and material availability Build Changes 1. 2. 3.
WHAT IS THE TIMELINE ON A
A pre-sale home is 9-12 months out. We are seeing fewer and fewer pre-sale options as builders are struggling to price homes according to the market and building material costs. Many builders are opting not to list homes for sale until 6090 days out to decrease the chance of increasing the price. Currently, we have homes in the MLS available from now until the end of 2022 for new builds.
NEW BUILD?
Should I have a new build inspected? Yes. Is an appraisal required on a new build? Yes, if you are getting a mortgage. Will the builder compensate me if they delay? No. Not even a light fixture upgrade.
Ready to get started? Send me a message! Happy to get you started with everything from the pre-approval, to deciding on a timeline, and setting up a search for builds that fit your needs!
REPUTABLE BUILDERS AND DESIGN PROFESSIONALS
Quality builders and design professionals ensure high standards of construction and craftsmanship, as well as architectural consistency.
Attention to architectural detail and quality construction sets east beach apart from any other neighborhood in the Mid-Atlantic.
Architectural details follow historical precedents of the tidewater vernacular, designed by members of the East Beach Design Professionals Guild.
The East Beach Builders Guild, a group of quality builders, ensures high standards for construction quality and craftsmanship throughout the neighborhood.
The following companies are members of the East Beach Builders Guild:
Area Builders of Tidewater, Inc.
R.
Bill Ore, LLC Charles A. Schmitt Contractor, Inc. Crumley Group, Inc. Definitive Homes Frye Building Corp. J. M. Sykes, Inc. L.
Hill Custom Builders, Inc.
Mid Atlantic Custom Builders, Inc. North Shore Construction Richardson Homes, Inc. Schneider Custom Builders
Seaside Homes, Inc. Simpson Builders, Inc. Stephen Alexander Homes Strickland Homes
Meet Frances Robbins
Frances Robbins is a Military Residential Specialist with an extensive knowledge of VA loans and residential real estate in Virginia Beach and the surrounding areas. Raised in a military family and spouse to a husband in the military, Frances is known for her strong work ethic, credibility and talent for helping people achieve a successful transition.
Leveraging her negotiating and research skills, along with her firsthand experience with military relocations, Frances matches her clients with the perfect home and lifestyle to fit their goals. For sellers, she applies her marketing knowledge and talent for creating effective advertising campaigns to deliver short market times and high sale prices.
Frances began her career in real estate as a sales and marketing coordinator for a new home builder. In recognition of her natural talent for sales and proficiency with marketing, she was recruited by Kovach Marketing to open five new communities in Southern California. Since then Frances has worked with a number of high profile clients, including Shea Homes and Lennar.
A graduate of California State University in San Marcos, Frances leverages her diverse knowledge of real estate to provide her clients with a comprehensive array of services and a unique insight into the industry. Guided by a commitment to serve the community where she lives and works, she has volunteered extensively for the Challenged Athletes Foundation, the Boys and Girls Club of Vista, California, and the Boy Scouts of America.
Certified Military Residential Specialist, REALTOR®
Direct: 757-585-3992 Frances.Robbins@MovingToVB.com eXp Realty LLC Virginia Beach, Virginia Licensed in the Commonwealth of Virginia
