5 EQUITY-KILLING MISTAKES IN NEW CONSTRUCTION
B R E T T M C I N T Y R E & B E T H S C H O O N E N B E R G J O H N G R E E N E R E A L T O R
h e l l o
Hi, We are Beth and Brett. Thank you so much for downloading our guide.
As buyers considering new construction, we know just how exciting the idea of building the custom home of your dreams can be. In order to achieve that dream, you need to find the right combination of homesite, floorplan, and homebuilder all within your budget.
Thechallenge is, just thinking about the building process can be overwhelming. Where do we build? What builder should we use? How do we stay within our budget? What plan do I choose? What design choices should I make? How long is the process going to take? The wrong choices during the building process could end up being critical mistakes down the line.
We totally get it, as new construction experts, we believe that everybody, no matter their budget, deserves the incredible experience of building a new home. That's why we are so excited that you downloaded our guide so that you can feel confident about building a new home!
Let’s get you on the path to success...
about us
If you are looking for new construction expertise, you have come to the right place. We bring loads of new construction experience combined with our 30+ years' worth of real estate experience. We are partnered with DJK Homes, a top custom builder based out of Naperville. While the average agent may represent a new construction buyer every now and then, we have had the privilege of helping hundreds of families make their dream of building a new home a reality over the past two decades.
We take great pride in providing our clients with the professional expertise they deserve, delivered in a comfortable and collaborative style.
YOU ARE GOING TO LIKE DOING BUSINESS WITH US.
BrettMcIntyre
RealEstateBroker
6302533629
brettmcintyre@johngreenerealorcom
johngreeneRealtor-Naperville
BethSchoonenberg RealEstateBroker
6306069057 bethschoonenberg@johngreenerealorcom johngreeneRealtor-Naperville
MISTAKE:
#1 UNDERESTIMATING THE PROCESS
When done right, the process of building a new home can be one of life's most rewarding adventures. Watching your vision come to life and moving into your tailor-made home is the stuff of dreams.
However, you are probably aware that the process of building a new home can be anything but the stuff of dreams.
The first mistake to avoid in building your dream home is to not underestimate the process. It can be time-consuming and complex. It’s important to do your research and plan accordingly.
While the idea of building a new home is exciting, it isn’t for everybody.
Here’s a quick quiz to determine if building new construction is right for you...
Do you have the time and patience over the course of the next year or two to commit to all the details of building a new home?
Do you have a pretty good idea of what you are looking for?
Do you know where you want to build?
Do you have a floor plan, or general layout in mind that will work for you?
Do you have a builder in mind?
Do you love the design process?
Are you detail-oriented?
How well do you deal with changes and problems?
If you answered "no" to many of the questions, that doesn’t mean you shouldn’t build a new home, but that does indicate that you have some thinking to do
Building a new home requires a lot of planning, attention to detail, and the stomach for the inevitable challenges that will arise during the process
If none of that is exciting or seemingly worth it to you great! That means you may be better suited for a resale home And if you love the idea of building new because you want an updated, lightly used, maintenance-free home, our market has plenty of those options for you.
Still interested in new construction? Then let’s keep going!
YES NO
#2
OVERLOOKING THE IMPORTANCE OF THE LAND
Overlooking the importance of a homesite is another common equity killer.
The first issue is usability.
Choosing an unsuitable or poorly situated homesite can add tens of thousands of dollars to the cost of your home. Demolition, development, infrastructure improvements, geography, flood plains, and environmental issues are all considerations when looking for a homesite. So before you buy land or start construction, make sure you have thoroughly evaluated all the potential costs and risks associated with the site.
The second issue is resale value.
We’ve all heard the real estate cliché, “location, location, location.” It’s a cliché because it’s true! When searching for the perfect homesite to build your home, keep in mind that not all land is equally desirable.
Here are some critical considerations when looking for the perfect homesite:
MISTAKE:
ADJACENT USE
Does the homesite sit next to other homes? Does it back to other homes? Is there empty space on any side of the homesite? What is that space zoned? Can it be built on in the future?
Typically, a home surrounded by other residential homes or a desirable open space, like a park, forest preserve, field, or lake will command the most attention and return on investment.
If you are budget-conscious when looking to build, a homesite is one of those areas where a considerable amount of money can be saved. Like many things when building a new home, there is a delicate balance between personalization and resale value so it pays to think about the eventual resale value of a home in that location. Even the most beautiful home located on a less desirable homesite will appeal to a smaller group of buyers, likely take longer to sell and not fetch top dollar.
LOT PREMIUM
In a neighborhood development, one where a developer or builder has multiple lots available for sale you may find that the cost of a homesite varies. Builders and developers will often apply lot premiums to certain lots they deem more desirable. This could be simply because the site is oversized, backs to open space, faces a more desirable geographic orientation, or is located in a cul-desac.
Buying a homesite with no or low additional cost could be appealing to many in order to save money on the overall build. After all, there is nothing wrong with saving money and maybe you are ok with a small homesite, any geographic orientation, or having neighbors closer by. The key is to understand the decision and realize that the homesite location will likely not net you a premium down the line when you go to sell.
#3 NOT EVALUATING BUILDER OPTIONS
Research of consumers who have recently built a new home revealed that nearly 1 out 3 (32%) would not recommend working with their builder.
So much of the fate of your new construction journey will come down to the partnership you form with your builder.
It is critical that you get this part of the process right.
The good news?
When it comes to builders in our market, you have options. Evaluating those options will go a long way to ensuring you make the best decision when building your new home.
There are a few types of builders to consider:
MISTAKE:
PRODUCTION BUILDERS
builders.
CUSTOM BUILDERS
Custom builders are more flexible in where they will build. They will often buy lots in developments or even purchase existing homes in highly desirable locations with the intent of tearing them down.
A big advantage of custom builders is that they offer much more flexibility than production builders. When working with a custom builder, you will have the ability to design and build whatever you are looking for.
#4
MISTAKE:
GETTING TOO PERSONAL
It's important to personalize your new home, after all that’s why you likely want to build your own home. But it's also important to be objective. It's the perfect balance that will make your home building experience enjoyable and successful. Don't be afraid to get creative and make the process your own. But, also remember to keep an open mind and consider all of your options.
The critical mistake we see buyers make when selecting options is...
Being too design forward
Having a home that is on trend is amazing, but as we all know, trends change quickly. We think of the countless times we are touring homes with our buyers that have been built in the last several decades that have features that were state-of-the-art at the time, and now are completely undesirable for buyers.
Our best advice is to truly understand your design style and also think about how long you will likely live in the home.
Understanding your time horizon is critical. If you are very confident you will be in this home for decades to come, then go crazy! Design to your heart’s content.
If you are a little more fluid, say it’s likely you could be job transferred, then consider finding those opportunities to personalize your home and be on-trend while generally selecting design options that are more timeless.
#5 CHOOSING STYLE OVER SUBSTANCE
Whenitcomestonewconstruction,many peoplegetcaughtupinthestyleofthe homeratherthanthefeaturesthatwill makeitacomfortableandfunctionalplace tolive It'simportanttorememberthat substanceshouldcomebeforestyle Here areafewthingstokeepinmindwhen choosingyournewhome:
1 DON'TSACRIFICE FUNCTIONALITYFORSTYLE
Ahomeshouldbebothbeautifuland functional,andit'simportantnotto sacrificeonefortheother.Whileit's importanttohaveastylishhome,don't forgetthatyou'llbelivinginit!Makesure thelayoutworksforyourlifestyleandthat thefeaturesyouneedareincluded.
MISTAKE:
2 CONSIDERYOURNEEDSANDBUDGET
Don'toverspendonfeaturesyoudon'tneedorwon'tuse.Similarly,don't skimponfeaturesthatareimportanttoyou Berealisticaboutwhatyou canaffordandwhatwillbemostusefultoyou
3.THINKLONGTERM
Whenchoosingyourhome,thinkabouthowitwillgrowandchangewith yourfamily Willitbeabletoaccommodatefutureneedslikeahomeoffice oranextrabedroom?Orwillyouneedtoupdateitlateron?Chooseastyle andfeaturesthatwillbeversatileandadaptable
4.THINKABOUTPERMANENCE
Whenbuildinganewhome,Itiseasytogetwrappedupinthedesign processofthehomeandputalotofemphasisoncosmeticfinishes.But oneofthebiggestregretsofmosthomebuyersisnotplacingenough emphasisonarchitecturalfeaturesduringthebuildprocessandputting toomuchemphasisondesignselections.Ingeneral,it’seasier,and
Here is a smart list of cost-effective options you, and the next buyer, will be glad you included:
ADDITIONAL HEIGHT BASEMENT
Many builders will have different size foundation walls they can pour. While a standard wall pour will be more cost-effective, that additional height, even one foot, will come in real handy down the line should you want to finish the basement.
BASEMENT ROUGH-IN PLUMBING
Staying on the basement trend. Rouging in plumbing for a future bathroom comes at a significant value during the building process versus having to retroactively add it.
FULL BASEMENT
In order to achieve more cost-effective price points, builders will often offer slab, crawl space, and partial basement options. Incredibly costly or impossible to do later, the extra money spent on a full basement will go a long way.
ADDITIONAL GARAGE SPACE
Cheaper to do during the build than after. Any type of additional garage space is one of the highest return on investment decisions you can make.
FLOOR OUTLETS
Especially on floors with a concrete slab or in large modern rooms, a wellplaced floor outlet is a great option.
DUAL VANITY SINKS
Dual vanity sinks add minimal cost and are highly desirable.
CEILING PRE-WIRES
Even if you don’t have plans for an overhead light or ceiling fan in a room, making the upfront investment is wise.
WINDOWS
No buyer has ever told us, this home has too much light. If you are on the fence, add the window.
STORAGE SPACE
Storage space is always at a premium. We have seen many cost-effective, creative ways to add storage space to a home and it is always appreciated by future buyers.
THE SUCCESSFUL HOMEBUILDING CHECKLIST
Initial Consultation with New Construction Expert
Get Pre-Approved
Meet With Builders
Select A Builder
Homesite Search
Select A Homesite
Purchase Homesite
Build Consultation
Select Floor Plan
Select Options
Design Consultation
Finalize interior options
Build Process
Development Foundation
Framing
Rough Drywall
Trim
Final Walk-thru
Close
THANK YOU Brett McIntyre Real Estate Broker 630 253 3629 brettmcintyre@johngreenerealor com Beth Schoonenberg Real Estate Broker 630 606 9057 bethschoonenberg@johngreenerealor com PLEASE CONTACT US WITH ANY QUESTIONS!
