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Buyers shopping for a newly built home? Act quickly

WASHINGTON – Nov. 10, 2015 – A homebuyer has decided on new-home construction, but if they’re dragging their feet, it could cost them money.
“Fall and winter are a great time to start working with a builder and do much of the upfront planning and legwork that goes into a new-construction home,” says Brian Brunhofer, president of Meritus Homes. “Plus, there are some definite advantages to beginning that process before the end of the year that buyers might not be aware of.”
Builder online recently highlighted some of those advantages, including:
1. Low interest rates: The 30-year fixed-rate mortgage is still under a 4 percent average, according to Freddie Mac. But most economists predict that interest rates will soon rise; and when rates do rise, it will deflate buyers’ purchasing power.
2. Buffering in more time: Many buyers fail to take account for the time it takes for permitting and approval before actual construction begins.
“The reality is that after a buyer signs a contract with us, it takes anywhere from 60 to 90 days to get architectural plans submitted and permits approved before we actually start construction,” Brunhofer says. “Buyers who begin that process in the fall or winter can relax knowing they have plenty of time to get all those details taken care of and be 100 percent ready to roll when the early spring construction season starts.”
3. Financial benefits: Before the end of the calendar year, builders have already secured 2016 contract prices for labor and building materials. As such, they’ll adjust their home prices to reflect any increased costs. Buyers who decide to sign a contract with a builder this fall rather than waiting until next spring may see some cost savings by taking advantage of 2015 pricing.
4. Timing the market: Many families prefer to move into their new home prior to the beginning of a school year. Buyers who work with builders in the fall and winter will likely be ready to move into their new home by next summer.
“Buyers should expect anywhere from five to six months of actual construction time,” Brunhofer says. “That means if we get all the upfront approvals and permitting taken care of during the fall and early winter, we’ll start work the minute the ground thaws and we’ll be wrapped up in time for a summer move-in date.”
Also, for buyers with an existing home to sell, they will be able to sell their current home during the spring, which is traditionally a busier housing market.
Source: “Give Customers Four Reasons to Buy Now,” BUILDER (Sept. 30, 2015)
© Copyright 2015 INFORMATION, INC. Bethesda, MD (301) 215-4688
 
Source: Florida Realtors Feed

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