5 Questions To Ask Your Custom Home Builder In 2022

Getting a few answers before you begin looking for your new home can eliminate many of the options on the market. Learn more about it here.

5 Questions To Ask Your Custom Home Builder In 2022

15 February 2022
 Categories: Real Estate, Blog

Buying a home can be a stressful and confusing process, especially for first-time homebuyers. Building a new home can be even more stressful and confusing. You will have a ton of questions about the process, but be sure to address the following issues as well. 

1. Guaranteed price

Deciding to build your own home can be an exciting time. You can tour multiple model homes to get an idea of what floorplan works for you and your family while also becoming familiar with builders and their pricing. Don't take too long, however. The cost of lumber and other construction materials has been on a wild ride throughout the pandemic. In 2021, for example, lumber prices were at an all-time high in May only to plummet 40 percent in June. To counteract that volatility, builders may not be offering to guarantee their advertised pricing for more than a week or two. Ask how long the price is guaranteed.

2. Time frame

The ongoing joke in new home construction is that the project always takes three times as long and costs twice as much as you anticipated. On a serious note, you should ask how long your custom home builder expects the project to take. In addition to pent-up demand for housing nationwide there is a shortage of workers, your builder may be feeling the pinch. Discuss a realistic time frame for completion with your custom home builder. While you can always expect a hiccup or two, the builder should be able to give you a general idea. 

3. Availability 

The competition was fierce for homes in 2021. In the San Francisco market, for example, Zillow reports that almost 50 percent of all homes are sold over the asking price. Custom home builders felt the effects of the competitive market as well. Some even implemented a lottery system to help determine sales. Talk to your custom home builder to determine the availability of homes in the development for 2022. 

4. Financing specials

While interest rates are still low for home loans, your custom home builder may offer an in-house special. In other words, if you do your financing through them you could receive a bonus. The financing special could be reduced closing costs, zero homeowners association dues for the first year, or even a month or two without payments. Ask your custom home builder if they offer in-house financing. 

5. Incentives

Finally, talk to your builder or salesperson about any incentives they may be running. Winter is a slower time for builders and they may be willing to throw in an extra or two if you sign a contract. This could be a free landscaping package or an upgrade to wood floors. It never hurts to ask. 

The key to buying a house from a custom home builder is to be aware of the current market conditions and ask questions.   

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what is your perfect home?

What is the perfect home? What is perfect for one person may be too small or large for another? Do you want a home made of brick or do you want one made of wood? Do you want a condo or do you want a house on a nice big piece of land? Getting a few answers before you begin looking for your new home can eliminate many of the options on the market. This will help to decrease the time it takes for you to search for the home that you find perfect for yourself and your family's needs.