What You Should Know Before Pricing a New Home

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What You Should Know Before Pricing a New Home

couple with clip board and coffeeWhen purchasing a new computer, you want to confirm some details first. Do I want a desktop or laptop? Is the monitor included in the price and what size is it? What about speakers?

I found it very helpful to get a quote not only on the cost of the computer but the options as well so I had confidence in knowing the total cost before buying.

When requesting a price on a home from the website, you will receive the base price of the home. Additional cost would include options you want to add but we cannot provide pricing on these until we know what options you have interest in.

To know and understand the total cost of building a home you will want the builder to provide an estimate. The estimate should be free with no obligation on your part and in writing so you have documentation to reference later.

The estimate would include the base price of the selected home design and any options you want to add.

Site development cost will vary based on your land. While the exact cost will not be known until the work is done, a budget can be included to cover the projected cost if you want to include the site development cost in the financing. 

The estimate can be viewed as a worksheet and revised as you make decisions on which home designs and options meet your needs and budget. It will be helpful to have an itemized price for each item on your wish list and then pare the list down to stay within the desired price range.

The purchase of a home is normally the largest investment you will make and should not be rushed into. Thoughtful consideration is important not only of current needs but anticipated lifestyle changes in the foreseeable future.

While a detailed specification sheet is available, many of the features are listed on the estimate serving as a reminder of what is included in the base price.

To get the best value in a new home, you need to know what the price does or does not include. Without this, shopping only by price could end up costing you.

Typically the estimate can be provided at the first meeting with a Housing Consultant. This is possible with a published base price for each home design and a price book that includes popular options.

Some plan customizations may require additional time to calculate pricing.

Once you have finalized the estimate for the home, a Purchase Agreement is created. With a deposit, this will hold the price and is used to apply for financing.

I believe it is assuring to note that a Purchase Agreement and deposit is contingent on obtaining financing and permits and the sale of my present home if that applies.