Dreaming of designing a new builder home with all of the options you want? We love helping buyers find Jacksonville new construction homes and sell quite a few every year. If you are considering Jacksonville new construction homes, there are some very important factors to consider and evaluate before making your decisions.
1) Build times can be long and unpredictable.
When you buy a resale you get a closing date. When you buy a to-be-constructed Jacksonville new construction home you do not get a closing date. Because of this the process leading up to closing can be quite unpredictable. Depending on the builders timelines, subcontractors, weather delays, materials shortages, etc you can experience fluctuations in build time. We find that many times when we are helping new home buyers go under contract with a builder, we can not even get a firm month in which we can expect closing to take place. Make sure you are okay with this uncertainty.
2) Binder deposits are higher.
Binder deposits, depending on the builder, are due at the time of contract and can be quite large. We have seen some builders require as little as 3%. On the other end, we have seen other builders require 10% of the contract price of the home. In addition, some builders require an additional deposit at the time options are picked out at the design center for any and all upgrades that are chosen. Depending on the price of the home, and the types of finishes you desire, this deposit can be quite large.
3) You may be waiting between six months to a year to move into your new home.
This timeframe starts after the contract is written and can vary depending on many factors. During this period of time you will need to be in a holding pattern in your financial life. This means you should not change jobs, make less money, open or close new credit accounts, buy a new car, etc. Do not do anything that changes your financial situation after you receive your pre-approval unless you have the go ahead from you loan officer that is familiar with what this will do to your financial picture. This can result in you being turned down for your loan, and depending on the sales contract, could put your binder deposit in jeopardy.
4) Where will you live until the home is ready?
If you are renting, are you prepared to go month-to-month if the home takes longer than expected. On the other end of the spectrum, are you willing to make double payments if the home is finished more quickly than anticipated? If you currently own a home, when will you try to sell it? Will you wait until a few months before your home is expected to be ready then try to time closing to coincide? This can be incredibly difficult and the dots do not always neatly connect so you have to be able to deal with some uncertainty.
Still Ready to Build with a Jacksonville Home Builder?
If you think you are willing to accept the uncertainty and get started, give us a call at 904.371.9654. We can help you through the contract and close process when you are buying a new home from a builder AT NO COST TO YOU. The house will not cost you any extra, and many times you will save time and money.