What we did to help our client win an amazing new construction deal.
Today, we are discussing the new construction process, prompted by a significant client acquisition yesterday.
Our client secured a remarkable deal with a 5.25% interest rate for a 30-year term and a $20,000 design incentive. Essentially, the builder is contributing 6% towards closing costs, alongside the $20,000 in design center upgrades. This was a massive win for our clients, who initially didn’t believe they could afford this community.
We believe there are often missed opportunities in our market due to fears about interest rates, the new construction process, and down payments. The key is to explore these options, ask questions, and see if they align with your goals.
Step one involves exploring various builders and communities to find the right fit. Once you’ve made a selection, you’ll sit down with a sales representative to price out essential elements, such as whether you want to finish your basement, add a bonus room, or have a screened-in porch. Afterward, you’ll speak with the builder’s lender, who often offers buy-down incentives, making this a favorable time to consider new construction financially.
“The key is to explore these options, ask questions, and see if they align with your goals.”
The next step involves moving into a purchase agreement, typically requiring a down payment of $10,000 to $25,000, which often goes toward your closing costs. Any remaining down payment is usually due at closing.
Many builders allow for contingency arrangements, where you can live in your current home until your new construction is ready. The build time typically ranges from six to nine months, depending on the builder, and we’ll align everything to minimize stress.
Two to three months before your new construction is complete, we’ll prepare to list your current home for sale on the market, aiming to coordinate the closings on the same day.
We are well-versed in navigating the new construction process and can assist you in finding a suitable fit for your family. If you have questions about design incentives or different builders, please don’t hesitate to reach out. We’re here to be your real estate resource and guide you through this fantastic opportunity in our marketplace.
