New Home Building. Where to Start?

[MNCYWX]

Hey CFers.

Outgrowing the starter home and looking at our next option for housing, considering a new home option as well. Stage: Blue collar city in MN, population 25k with plenty of starter housing options but lacking in the mid-tier level. Cost of homes has risen dramatically in the last five years. New home growth is slow for now with only about a new home a month built in town, but expecting that to change with the addition of a new Hy-Vee distribution center in the next few years. I'd like to get ahead of that curve if I can. City does offer a 5-year tax abatement program for new build single family dwellings.

Anyway... new homes aren't actively being built so there aren't any on the market and I'd like to look into it for a next option. I just don't really know where to start... get the ball rolling?

Thanks for the insights... dos and don'ts. Pros/cons?

 

[flynnhicks03]

Hey CFers.

Outgrowing the starter home and looking at our next option for housing, considering a new home option as well. Stage: Blue collar city in MN, population 25k with plenty of starter housing options but lacking in the mid-tier level. Cost of homes has risen dramatically in the last five years. New home growth is slow for now with only about a new home a month built in town, but expecting that to change with the addition of a new Hy-Vee distribution center in the next few years. I'd like to get ahead of that curve if I can. City does offer a 5-year tax abatement program for new build single family dwellings.

Anyway... new homes aren't actively being built so there aren't any on the market and I'd like to look into it for a next option. I just don't really know where to start... get the ball rolling?

Thanks for the insights... dos and don'ts. Pros/cons?

Contact some home builders in your area. Figure out how much you want to/can afford to spend, and see what options they have, locations they have available, etc.

 

[ArgentCy]

If your looking to make money it's highly unlikely going the new route is going to work. Unless you are the builder / contractors.

Buy a nicer house in the best area and don't overpay. If you really want a new house and don't care as much about the money then that is a different story.

 

[cowgirl836]

Hey CFers.

Outgrowing the starter home and looking at our next option for housing, considering a new home option as well. Stage: Blue collar city in MN, population 25k with plenty of starter housing options but lacking in the mid-tier level. Cost of homes has risen dramatically in the last five years. New home growth is slow for now with only about a new home a month built in town, but expecting that to change with the addition of a new Hy-Vee distribution center in the next few years. I'd like to get ahead of that curve if I can. City does offer a 5-year tax abatement program for new build single family dwellings.

Anyway... new homes aren't actively being built so there aren't any on the market and I'd like to look into it for a next option. I just don't really know where to start... get the ball rolling?

Thanks for the insights... dos and don'ts. Pros/cons?

http://www.rochesterareabuilders.com/public-events/fall-showcase/

go to that and do your research ahead of time. Check out their site to see where lots are available. If only a couple builders are even active in areas you want to live, that narrows your choices. Check out the websites of builders, noting floor plans and pictures of layouts for what you like and don't like. Pay attention to use of space. Are they being smart with the layout flow or is it disjointed and wasteful?
Set up meetings with builders you are interested in - even before you go to a Parade of Homes type thing. Ask for a typical customer sample contract and scope of work agreement. Determine what level of "custom" build you want. Do you want something where you pick from different levels or packages and it's all pre-picked for you or do you want input on every light fixture and such?
In the Scope of work agreements, check out the allowances. Now go to a flooring shop or granite place and see how your tastes line up with that. What do they allow for appliances vs. what you would like to get? It may turn out that one builder appears much more "affordable" than another because they're giving you allowances that only provide for formica countertops and laminate flooring.

When you meet with people - who are you meeting with? Are they the people you'll be in close contact with during the whole build? Or are they just a salesperson? If you get to talk with the builder/project manager, how does it go? Can you see maintaining a good working relationship and open communication? How many homes do they do a year? Do they throw up 50 a year and check on yours once a week or would they see your house most days? Do they work with particular vendors repeatedly? Try to get roundabout info on former customers you can talk to. As in, try to get names from a realtor or someone else who can put you in touch with a former customer and not the person who has the testimonial on the builder's page.

 

[MNCYWX]

If your looking to make money it's highly unlikely going the new route is going to work. Unless you are the builder / contractors.

Buy a nicer house in the best area and don't overpay. If you really want a new house and don't care as much about the money then that is a different story.

Not necessarily make money, just avoid paying more when there could be a housing shortage in a few years when a new major employer comes to the city.

I'm also looking at that next level existing housing but there just isn't a lot available... hence why I'm entertaining this option.