Lake Homes Realty has just released the Summer 2017 update to the firm’s proprietary Lake Real Estate Market Report.
Covering nearly 400 lake real estate markets across nine states through the Southeast and Southwest United States, the report is the nation’s most comprehensive look at these markets.
This edition of the report has data from Alabama, Arkansas, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia. (Market information from additional states will be included in the Fall report).
A Must Read for Lake Home Buyers and Sellers
Lake Homes Realty’s Director of Market Engagement Brian Cauble shared, “Regardless of where they live now, anyone considering buying or selling a lake home or land in these states should find this to be ‘must read’ information.”
Cauble, along with Tom Wofford, is a co-author of the report, which includes 47 pages of rankings for market sizes, most expensive home and land markets, and most affordable home and land markets.
Previous editions of this report have been a valuable resource for lake home and land buyers and sellers. The report has also been popular with a number of local and regional news outlets.
The full report is available at no charge for lake real estate buyers and sellers, as well as media use.
Doris Phillips, Chief Operating Officer of Lake Homes Realty, was featured in the May/June 2017 edition of Realtor® Magazine.
The feature article, entitled “On Golden Ponds,” is the latest installment in a periodic series of featuring the nation’s most successful and innovative real estate brokers.
The article highlights Phillips’ growth in real estate through the years. This includes a number of years in title insurance and real estate closings. In 2004, she founded her own title insurance agency, RealSource.
The article also offers an inside look at the unique history of Lake Homes Realty and LakeHomes.com, including how the business was designed using a new brokerage business model.
A Unique Real Estate Company
Featuring licensed agents in multiple states, Lake Homes Realty provides robust agent and client support using a high-tech support center.
Lake Homes Realty COO, Doris Phillips
Instead of the overhead of multiple brick-and-mortar offices, Lake Homes Realty instead invests more heavily in better marketing for its clients and agents across the country.
In addition to COO, Doris is also National Director of Brokerage Operations. She manages all aspects of the company’s brokerage operations, including licensing, contracts and commissions.
“I’m honored that Realtor Magazine wanted to share our story,” said Phillips. “We work hard to be very meaningful to our agents, buyers and sellers. And we strive to think beyond ‘how its always been done’ to find more and more ways to serve.”
Realtor Magazine
Realtor Magazine has a print distribution that reaches more than 1 million readers nationwide as well as an active online presence.
Now that you’re moved in, you might be wondering what it’s going to cost to keep the place in tip-top shape.
You will run into several smaller, and occasionally larger, costs when maintaining your lake home. These add up, and the bottom line can catch many first-time homebuyers by surprise.
Here are some of the most common hidden costs of keeping a lake home.
Home Repairs
Lake homes are often located on gorgeous plots of land, with stunning views of the water and the natural surroundings.
Because of this, lake homes often absorb far more damage from the elements. The wind and rain, the lake itself, even the trees around your property can contribute to these hidden costs.
On average, lake homes require more frequent repairs and maintenance. Common repairs and their causes:
Damage due to wind and storms
Roof or structural damage due to falling tree limbs
Foundation issues due to fluctuating water tables
Siding replacement due to wind damage
Mildew due to high moisture content in the air
Damage due to wildfires (most common in western states)
Remember that you are responsible for the entire property you own, not just the house itself! Lawn upkeep, landscaping, tree trimming, and other costs can be a hefty responsibility.
For homes with forests or large trees nearby, tree trimming is a must.
Limbs overhanging your property or power lines could do serious damage. Spending a few hundred dollars to have a professional remove any overhanging limbs can save you tens of thousands of dollars in damage.
Don’t forget the shoreline.
If you own a waterfront property, you may be responsible for the seawall. This structure protects your property line from erosion. Repair estimates vary, but installation can cost more than $100 per linear foot.
If this is not your primary residence, you will need to hire someone to mow the lawn regularly. Your neighbors won’t appreciate having an overgrown field next door!
Many lake properties are also located on hills or steep inclines, too. Don’t assume that your push mower will always do the job.
Home Improvements
Once you have bought your lake home, chances are you want to customize it. Plans to improve the property are often made before it’s even been selected.
If you have your heart set on any of these improvements in the first few years, be sure to calculate that into your long-term budget.
Many first-time lake home buyers neglect to include these in their budget when shopping for a lake home, even if they fully intend to install them.
Deck
Hot tub
Barbecue grill
Swimming pool
Garden
Guesthouse
Firepit
Energy-efficient windows/lighting
Be sure that any improvements are permitted by local laws and regulations, too. Many lakes require special construction permits. Also, be sure to look into how to find the right contractor for the job, if you won’t be the one completing the projects.
The average wooden boat dock lasts roughly 20-25 years.
Repairs may only cost a few hundred dollars, but replacement can cost several thousand. Factors such as climate, size, and water depth factor into this cost.
If you plan on owning your lake home long-term and have a dock, chances are it will need to be replaced eventually.
This process will accelerate if your lake freezes over in the winter, too. Freezing and thawing over several years will inevitably deteriorate any material.
Two of Everything
For people who have a lake home as their secondary residence, there is what we like to call the “two of everything” cost. For everything you keep at home, you will need at least one more set for your lake home.
Buyers rarely budget for this, but it adds up incredibly fast. Don’t fall into the trap of assuming that you’ll just ferry everything from your primary residence to the lake home every time, either.
Furniture
Appliances
Cookware and dinnerware
Sheets, linens, and towels
Decorations
Tools
Toiletries
Cleaning supplies
Children’s toys
This is also true for utilities.
Remember, owning a second home means having two power bills, two telephone bills, two water bills, etc. These can often rival a car (or mortgage) payment if you aren’t careful! Be sure to budget for this.
Many experts highly recommend a security system for any secondary residence. Houses that are not lived in full-time are especially vulnerable to break-ins.
Even if you visit every weekend, having a security system in place can give you great peace of mind.
Having a security system can give you real peace of mind, if you go weeks, or even months, without visiting your lake home.
Guests
Guests can be the most noticeable, if not the biggest, cost of owning a lake home! This can include your extended family, your neighbors, friends, coworkers… anyone you invite over to enjoy your beautiful new lake home!
Lake homes can serve as the perfect getaway for you and your loved ones.
The hidden costs of playing host can add up quickly, though. Especially for a large lake house.
For large gatherings, don’t be afraid to ask guests to chip in food, beverages or other supplies. This can help offset what would otherwise be a huge cost.
It is difficult to estimate many of these costs in advance. Still, if you spend a little time on them, they can give you a much better idea of your budget.
You will be much better prepared to not just buy your lake home, but to enjoy it for years to come.
It’s no secret that lake property typically costs more. If you are shopping for your first lake home, chances are you’re extremely aware of this! What many first-time buyers don’t know is that there are several hidden costs of buying a lake home that may lie just beneath the surface.
While you are busy falling in love with that gorgeous lake home of your dreams, keep the following factors in mind. Your budget will thank you!
Leased Lots
Even with a traditional mortgage, buying a lake home may involve leasing the land itself.
This is most common on waterfront property. The power company, the local municipality, or even the federal government may own the lake itself – and that often includes the shoreline.
When you purchase a home on a “leased lot,” you enter into a long-term lease with the owner.
These are not complicated, but it can be a significant expense. Leases typically run between $200 and $500 a month, depending on the area. Depending on the area, your lease could last anywhere from 20 to 100 years!
When on the waterfront, ask always find out who owns the shoreline. This can be a huge factor in your budget.
Property Taxes
Lake property is subject to higher property taxes as well, and if your lake home is going to be a second home, that can make tax season incredibly complicated.
These hidden costs of buying a lake home often don’t pop up until you’ve already been in the home for months.
Many lake homeowners have their primary residence in different counties or even states. Research the local laws and tax rates for your lake home. Don’t be afraid to consult with an accountant!
If you rent out your lake home, you may also be subject to income tax.
Insurance
Homeowner’s insurance is usually higher for lake homes due to their increased exposure to the elements. Having good coverage is a wise choice to begin with. Unfortunately, that choice might already be made for you.
Local laws and insurance companies often mandate a higher level of insurance coverage for lake homes, including flood insurance.
Remember that you need to get coverage for any additional structures on the property, such as your dock, guest house, or sea wall. Your homeowner’s insurance policy may not cover them automatically.
Flood insurance should always be seriously considered for lake property. After the floodwaters recede, this protection can mean the difference between a serious hassle and a financial disaster.
HVAC and Septic Systems
According to Wally Cawthon, a Lake Homes Realty agent on Jackson Lake, Georgia, “The two biggest unexpected and preventable expenses for first-time lake home buyers are repairs to HVAC systems and septic systems. If buyers take proper inspection measures, they can avoid these in almost every case.”
Many lake homes, especially in rural areas, use a septic system.
These need to inspected regularly to ensure that they don’t pollute the local water table, or the lake itself.
Never purchase a lake home with a septic system before having it professionally inspected.
This typically costs $200 to $500, and is money well spent. Replacing a seriously damaged septic system can easily cost up to $7,000.
HVAC systems should also be thoroughly inspected before buying.
A home that looks picture-perfect when the weather is mild can still house an HVAC system long past its prime.
Buy without having it inspected, and you may be in for a rude surprise (and an even more rude repair bill) when you take ownership.
Outdated HVAC systems can also churn through electricity, especially in the chilly winter months.
Depending on the specifications, a high-quality, permanent dock can cost more than $50,000. Factors such as size, water depth, climate, and other factors all contribute to this cost.
If part of your dream home involves building a dock, get a professional estimate on dock construction, then factor that cost into your budget for the new home.
On the other hand, you may have your eye on property that already has a dock.
If so, ask the selling agent if they know how old it is. Most wooden docks last 20 to 25 years. Purchasing one that is due to be replaced can be a serious hit to your wallet!
Know how your homeowner’s insurance policy covers your dock. Many policies cover the structure from incidental damage, but not damage due to flooding, freezing, or thawing.
Utilities
Many lakes are situated in pristine, secluded, rural areas. This means that power, water, cable, and other utilities often come at a premium.
Lake homes need a dedicated “land line” for the telephone. Between the rural locations and limited cellular service providers, you never want to rely entirely on a cell phone.
This may seem like a trivial concern. Lake homeowners can attest, though, that these hidden costs of buying a lake home add up quickly.
You will find this doubly true if your lake house is a second home. This is why many lake homeowners “winterize” their homes in the winter months, cutting off the power, gas, and water when it isn’t in use.
These associations often serve the same role as small-town municipalities around the lake itself. They maintain the lake, set local regulations, and preserve the natural beauty of the area.
Homeowner’s association dues usually make up a small, but mandatory, annual cost.
It’s a good idea to acquaint yourself with the association before purchasing the home. This can give you an inside look at the local culture, including your future neighbors!
Do the Research
These are the most common costs to take into consideration. When researching a lake home, factor these into your budget early on.
When you hear “lake home,” those words can conjure various images. Contrary to popular belief, not all lake homes are waterfront homes.
As a matter of fact, many people who own lake houses aren’t even close to the waterfront! Because of this, many lake homes are more affordable than you might think.
There are three major types of lake property: lakefront, lake access, and lake community. Each has its pros and cons, both functionally and financially.
Waterfront Property
Lakefront, also known as “waterfront,” property extends to the shore of the lake itself.
It offers the most prestige, the most access, and a direct line to the lake right out your door.
Lakefront property can be incredibly beautiful, and there’s nothing like looking out your back patio directly onto the calm waters of the lake in the evening.
Naturally, such prestige comes with a high price tag. Waterfront property is significantly more expensive than similar property, even a block away from the water.
It also brings with it many more responsibilities.
Waterfront property is the most vulnerable to flooding, erosion, and inclement weather. There are often special insurance requirements, and upkeep can be a significant commitment of time and money.
If you plan to build or improve on waterfront property, make sure your plans fit with the local regulations. Many lakes have restrictions on docks, signage, and landscaping.
Since there is a limited amount of shoreline on each lake, property on the water’s edge often appreciates the fastest.
Waterfront is also very attractive to vacationers. This can pay dividends if you intend to rent it out.
Waterfront property is perfect for those who have their heart set on the water’s edge and have the time and money to maintain it.
Lake View Property
“Lake view” property, also known as “lake access,” is near the water but does not extend to the lake itself.
This property can be a literal stone’s throw away from the water and is often just as picturesque as the lakefront.
Prices vary from lake to lake, but lake view property is typically much less expensive than lakefront.
Lake view property isn’t as scarce, doesn’t have the same water access, and doesn’t have the convenience or prestige of being directly on the waterfront.
At the same time, a lake view can give many of the benefits of a waterfront at a fraction of the cost or the headaches.
Owners still typically have easy access to the lake without needing to maintain their own stretch of shoreline. Weatherproofing and maintenance costs aren’t as significant, either.
Most lake communities have options for those who live on the lake to enjoy its benefits. Marinas can store boats until you need it, and there are usually access points for swimming, fishing and water sports.
If you want a property close to the water’s edge but have a limited budget, a lake view property may be for you.
Lake Community
Most lakes have neighborhoods arrayed about them. Many of these homes aren’t within clear view of the water’s edge but are still very much part of the lake community.
Homes situated in a lake community a short distance from the water can cost a fraction of waterfront property.
Nicole Anderson Walters, a Lake Homes Realty agent specializing in real estate on Logan Martin Lake, Alabama, offered, “you can save money by being in a lake view or lake access neighborhood. Many have water views and community areas with boat launch.”
“Where a home may cost you $89 per square foot off the water, the same home could cost upwards of $168-$200+ per square foot directly on the water,” she added. “You can often find a much nicer home off the water with amenities in the neighborhood.”
Depending on the size of the lake, these neighborhoods can range from high-end gated communities to condos and cabins to retirement communities and everyday suburbs.
These lake communities are often a short drive to a short walk or drive to the lake itself but still have easy access to fishing, swimming, boating, and other lake activities.
As an added benefit, most avoid many of the upkeep costs and restrictions associated with lakefront property.
Many communities are also situated near state parks, landmarks, shopping centers, and other attractions. If these appeal to you more than living near the water, look for lake communities within a short distance of the lake.
Find what works for you!
Every lake is different.
In addition to those listed here, market prices can vary greatly between lakes. If you can’t find the kind of property you are looking for at one lake, look for others nearby.
If you are selling your home, chances are your real estate agent has spoken with you about an open house.
These are an excellent way to get prospective homebuyers in the door and get them talking to your selling agent.
If you are still living in your home, this can be tricky.
Here are some tips to help you work with your realtor and make your property as appealing as possible.
Clean, Clean, Clean
Now is the time to do all the spring cleaning you’ve been putting off, and then some. Vacuum, mop, clean the floors, wipe down the countertops and more.
Don’t neglect any out-of-the-way areas like the guest bedrooms, bathrooms or the garage, either. This is the time to clean the grout, tile, fixtures and appliances.
Remove the sources of any unpleasant odors. Even faint odors from a pantry, cigarette smoke or garbage disposal can often turn buyers off.
Especially if you have pets, vacuum the carpet, drapes and upholstery. Buyers with pet allergies won’t want to stay long otherwise!
If you don’t want to handle the cleaning all by yourself, consider hiring a cleaning service for a good, deep clean.
De-clutter
Buyers are attracted to properties where they can imagine themselves moving in as soon as possible.
Help this process along by removing any day-to-day clutter that might distract them from those happy thoughts.
Put away things such as laundry, dishes, bills, children’s homework or pet projects.
Make sure the dishwasher and sink are empty, and all trash cans are empty, even those in the bathrooms or garage.
When possible, you should also remove any prominent personal items. You want buyers to imagine your property as their new home.
Family photos, quirky fridge magnets, religious icons and sports memorabilia can make that difficult.
If removing framed photos leaves a big empty spot on the wall, you can temporarily replace them with a simple painting or other generic decoration.
Let the Sun Shine In
Homes look their best, and their biggest, when they are open and well-lit.
Turn on every light in the house, other than those that cause noise, such as lights wired to kitchen exhaust fans.
Clean your windows and pull back the curtains, as well. If bushes or trees obscure the view, consider trimming them back.
Open windows always make a house look larger, especially in the living room.
Don’t let Rover come over
If you have pets, try to remove them during the open house, especially dogs.
Dogs can be very anxious or excited around visitors, especially if you aren’t there. No matter how friendly they are, your furry friends might give the wrong impression.
If you simply can’t remove your pets, for whatever reason, confine them to a specific part of the property, such as the garage.
Make sure they won’t bark or scratch at the door, and that your realtor is comfortable being alone with them.
Whatever you do, do not lock pets in sought-after areas such as the master bedroom. The entire point of your open house is to give buyers an in-person look at the property!
Protect your Belongings
Ideally, you will have several strangers looking and moving through your house. Make sure your belongings and valuables are kept safe.
Your realtor can’t be everywhere at once.
Remove or secure any jewelry, medication, electronic tablets and other valuables that might “walk off.”
If you aren’t sure where to put them, simply pack them in the trunk of your car until afterwards.
After the open house, double-check your doors and windows to make sure they are still locked.
Remember the Great Outdoors
Mow, trim, weed and wash!
Your front yard is the first thing visitors will see when they pull up. Make sure your lawn is already mowed, with the grass clippings blown or swept away.
Trim any bushes and remove any low hanging tree limbs that need removal.
If your house has vinyl siding or a brick exterior, this is the perfect time to give it a pressure wash.
This is doubly true for walkways, steps, and driveways. Removing a few years of grime and mildew can make your home stand out!
Don’t neglect the back yard, either. Visitors will certainly look there!
Put away any tools, children’s toys, lawn care equipment and other clutter. Outdoor furniture is a plus, but make sure yours is clean and doesn’t have any mildew or standing water in it.
If mosquitos are a problem in your neighborhood, light a few citronella candles in discreet places so they don’t harass your guests.
Leave!
This may go against your instincts, but most buyers are far more comfortable speaking with an agent, without the homeowner present.
Even if they don’t buy the house, they can often give your agent useful feedback that they might not give you directly.
Give your selling agent a complete rundown on anything they need to know, and let them work their magic.
If your home is a lake home, a selling agent who specializes in lake property can be a huge help with the lake-specific aspects of this process. Visit the Find a Lake Agent page on Lakehomes.com to find one in your area.
And be sure to check out our lake home specific open house article for additional advice and tips.
When it’s time to sell, you’ll want your investment to impress buyers and earn top dollar.
A real estate agent can suggest ways to make the process go smoothly, but all homeowners can take some basic steps even without professional help.
Here are five important steps to take when you’re ready to sell your house.
1. Declutter
Remove knickknacks, toys and other belongings that clutter the rooms in your house to make the spaces seem larger and more open.
Buyers will also have fewer distractions as they walk through the home.
Don’t plan on shoving your clutter into closets, though, because potential buyers will open closet doors as they tour your house. If you have a lot of clutter and find it hard to get organized, consider temporarily renting storage space for some of your belongings.
2. Repair damaged items
If you have small issues, such as holes in walls or lights that don’t work, now’s the time to fix them.
To get an idea of what you need to repair, walk through your home and imagine yourself as a buyer, or walk through with a friend you can trust.
Are there defects that you’ve learned to overlook but that would catch your attention when seeing them for the first time?
You’ll also want to make sure you correct major issues that a buyer may not see immediately, such as problems with the heating and cooling system, before you put your home on the market.
A potential buyer will probably hire a home inspector before closing. If the inspector finds problems, the sale could be put on hold until they’re resolved.
3. Deep clean
Go beyond your weekly cleaning routine.
Every surface a potential buyer sees is a surface that needs to be clean. Messy spaces could send the message that you don’t take care of your home, and it could make potential buyers wonder what else is wrong with the property.
A deep cleaning means shampooing carpets, washing windows and cleaning tile grout throughout the house.
Pay special attention to bathrooms; make sure fixtures are sparkling and wipe out any dirt rings or mold patches.
Keep up the cleaning routine while your home is on the market. If you’re pressed for time, consider hiring a weekly cleaning service.
4. Plan pleasing scents
You probably don’t want buyers who enter your home to catch lingering odors from last night’s dinner.
For a nicer aroma, add fragrances around the kitchen and throughout your home.
The smell of freshly baked cookies is pleasant for many buyers. If you prepare a batch just before a showing — and offer them to the buyer and real estate agent — you could make your home stand out.
There’s no need to worry if you’re not much of a baker.
A few well-placed sticks of cinnamon or citrus fruit, such as oranges, can also produce a refreshing scent.
In fact, a 2013 study published in the Journal of Retailing and reported by the Wall Street Journal determined that a simple orange aroma encouraged buyers to spend more money at a home decor store, compared with other scents.
5. Stage your home
Your decor expresses your personality, but home shoppers may have different tastes.
Consider changing the decor to appeal to a large number of buyers. This practice is known as “staging,” and it could mean you rearrange furniture, tone down dramatic wall paint with more neutral colors or even rent new pieces of furniture until the home is sold.
In a 2015 National Association of Realtors report on home staging, 52 percent of buyers agents reported that their buyers were willing to increase the amount of money offered for a staged home compared with a similar property.
You could ask your real estate agent for design suggestions and stage your home on your own. Or if you’d prefer a professional home stager, your agent may be able to suggest someone.
You can also contact the Real Estate Staging Association for names. The survey showed the median amount homeowners paid for staging services was $675.
Take note of these five steps to get your home ready to sell before you put it on the market. The effort you make repairing, cleaning and staging can pay off big when a buyer makes an attractive offer on your house.
NerdWallet is a Lake Homes Realty / LakeHomes.com content partner providing real estate news and commentary. Its content is produced independently of Lake Homes Realty and LakeHomes.com.
Lake Homes Realty is excited to announce the company is now licensed by the State of Maryland as a full-service real estate brokerage.
Maryland is the company’s tenth state for brokerage operations and the third new state to open operations this year.
Lake Homes Realty’s primary focus will be area lake real estate. This includes property and homes with lake front, lake view, lake access and lake oriented communities.
“We are excited that our rapid company growth has brought us to Maryland. This is a great market and one that we know we can help grow even more,” said Lake Homes Realty’s CEO Glenn S. Phillips.
Maryland Lake Real Estate
Deep Creek Lake in Maryland
In addition to tens of thousands of lake homes for sale across the country, the company’s website LakeHomes.com provides online property listings on several Maryland lakes.
The properties listed for sale on these Maryland lakes are automatically updated each day to ensure the most accurate information.
Additionally, this up-to-date information can be accessed by potential buyers across the country.
Since lake home buyers are rarely local, this national exposure to buyers provides an advantage to lake home owners who are selling their property.
Likewise, lake home buyers appreciate a website dedicated to lake real estate that provides comprehensive and accurate lake-focused property data.
Unlike many web-based portals, Lake Homes Realty is not an advertising company. It is a full-service real estate brokerage with its own licensed expert lake real estate agents.
Growth Plans for Maryland
Phillips shared the brokerage operations team is already in discussion with experienced real estate agents in Maryland about joining Lake Homes Realty.
However, unlike brokerages that seek as many agents as possible, Lake Homes Realty intentionally limits the number of agents per brokerage.
“We believe that a small number of service-focused, lake expert agents can serve our clients better than an army of agents,” Phillips explained. “Furthermore, we continue to make significant investments to help our agents succeed in this unique market segment. Together we can provide the most convenient expert service and marketing for lake home buyers and sellers.”
About Lake Homes Realty
Lake Homes Realty is a full-service, multi-state real estate company focusing on lake homes and land.
Headquartered in Birmingham, Alabama, the firm is one of the fastest growing real estate companies in the country.
Currently, Lake Homes Realty is a licensed real estate brokerage in ten states, including its home state of Alabama. The business is growing rapidly, with additional state brokerages coming soon.
The company was recently recognized by the Birmingham Business Journal as the 8th fastest growing company in Birmingham. This is the second year in a row to achieve this ranking. For more information, visit http://www.lakehomes.com/
Buying a home in some markets is like being in a gladiator ring. Multiple rounds of showings and getting into — and losing — bidding wars can leave you feeling defeated.
If you’re growing weary of wading through an increasingly shrinking inventory of resales, there’s another possibility worth considering: buying new construction.
Although the pace of new construction has lagged demand in recent years, total housing starts are projected to increase by 6.1 percent in 2016 compared with 2015, says Stephen Melman, director of economic services for the National Association of Home Builders.
Much of that gain is likely to come from the single-family sector, which is expected to grow 11.3 percent. Also, new single-family home sales are forecast to rise 13.6 percent this year to 571,000, Melman says.
Tired of sitting on the sidelines when it comes to buying a home? Here are four smart reasons to invest in new construction:
1. You get to customize your home
Not all of us are blessed with an interior designer’s touch.
With a new home, you pick from expert-selected features, floor plan, housing lot, community and more, so you don’t have to agonize over an extensive remodel to get the house of your dreams.
Margaret Garry and her husband, Stephen Hawkins, recently built a new home on Austin’s bustling east side.
They decided the upfront investment made more sense than spending excess time and money to constantly fix an older home, Garry says. To stay within budget, though, they avoided unnecessary upgrades that would have added thousands to their final price tag.
“When we tried to determine what options to include in our house, we started off by listing everything we wanted, and we came in about $20,000 over budget,” Garry says.
To save money, they ultimately pared down extras that they didn’t need, such as an optional living room fireplace and a utility sink in the laundry room.
2. You might get builder incentives
Believe it or not, there’s a bit of flexibility in the negotiation process with a builder.
Although some things won’t change, such as lot premiums or the price of adding certain designer upgrades, builders will sweeten the deal with money-saving incentives to close a sale, Melman says.
For instance, some builders offer to pay closing costs or loan fees, absorb financing points, or provide options or upgrades for free or reduced cost, he says.
If you don’t see incentives advertised, ask about them. Don’t assume that they’re not available.
3. You likely will get a builder warranty
Most new homes typically come with a builder warranty to cover common post-construction issues that the builder is responsible for correcting, so you don’t have to pay out of your pocket for those fixes, says Craig LeMessurier, senior director of corporate communications at KB Home, one of the nation’s largest homebuilders.
“Resales don’t come with a warranty,” says LeMessurier, whose company offers a 10-year building warranty on new homes.
When you talk to sales associates at new-home communities, ask what that builder’s warranty does and doesn’t cover so there are no surprises later, LeMessurier says.
4. You can finance through the builder — or any lender you choose
Some builders provide a one-stop shop for you to build and finance through them directly or via a preferred lender.
For instance, Garry and her husband chose the latter route because the affiliated lender offered them significant closing-cost assistance that other lenders couldn’t match.
A few things to keep in mind about new-construction financing: Some lenders offering new-home loans might also require higher down payments, an excellent credit score and consistent payment history.
Additionally, if you get outside financing, your lender will check your builder’s credit and background to assess its level of risk in case the builder bails on the contract.
This article was written by NerdWallet and was originally published by Redfin.
NerdWallet is a Lake Homes Realty / LakeHomes.com content partner providing real estate news and commentary. Its content is produced independently of Lake Homes Realty and LakeHomes.com.
Lake Homes Realty has just released the Summer 2017 update to the firm’s proprietary Lake Real Estate Market Report.
