Building a Home: Is it Right for You?
Low housing inventory can make it hard to find the right home. In these cases, some homebuyers may consider building their own dream home instead. But is building a home the right solution? Let’s take a closer look at the process of building a new home and explore whether it’s the right move for you.
Step One — Work with your Realtor® to Find the Right Builder
The first step in building your own home is to find a builder you can trust. We recommend working with a licensed real estate agent who can help you navigate this process - they can facilitate builder research and interview multiple builders to find the one that best suits your needs. When researching potential builders, pay close attention to their reputation, experience, portfolio, and customer reviews. After finding one or two builders you feel comfortable with, your agent can begin checking references and confirming proper licensing before moving forward. Can you work directly with a builder without a buyer's agent? Yes. But keep in mind that builders represent their best interest. It would be best if you went into the process with someone who has the professional experience to represent YOURS.
Step Two — Designing Your Home
Once you have chosen a builder, it’s time to start designing your new home. Depending on your budget and preferences, this could be an overwhelming process or a relatively straightforward one. If you are working with an experienced builder who knows what they are doing, they should be able to guide you through the design phase while making sure that all of your ideas come together in harmony. Make sure to ask questions if there's anything you don't understand!
Step Three — Securing Financing
Your next step will be securing financing for your new construction project. Fortunately, many lenders offer specific loan programs designed specifically for new construction projects that provide more flexibility than traditional mortgage loans. Your real estate agent should be able to help connect you with lenders offering these types of loans so that you can get approved as quickly as possible and begin construction on your dream home.
Building a home from scratch requires careful planning and consideration, but it can also be very rewarding if done correctly. If low housing inventory has made it difficult for you to find the perfect house for sale in your area, then building may be worth considering—especially if working with an experienced builder who knows what they are doing and is willing to answer all of your questions along the way. Keep in mind that having professional help from both a realtor and lender can make the entire process much easier and smoother!