When selling land or new home construction packages, it’s a good idea to be prepared to answer the most common questions asked by first-time homebuilders. Even seasoned homeowners may be unfamiliar with the process of building a new home, as it is very different from moving into an existing home. The more prepared you are with responses, the closer you will get to closing the sale, so be ready to answer these 10 frequently asked questions.
1. How Do I Finance Building a New Home?
Getting funding for building a new home is not the same as a traditional mortgage, and first-time homebuilders will likely have questions about how it works. Be ready to explain that financing a new home requires a construction loan and that not all banks offer this type of funding. Many builders offer competitive financing solutions for both the construction loan and the mortgage, so find out who in your builder network provides these types of packages.
2. How Long Does it Take to Build a New Home?
Of course the answer to this question depends on a variety of factors, but a general guideline is that the building process takes about a year. Working with a builder that offers custom home floor plans can accelerate the process because the designs are largely complete. These types of builders also have relationships with suppliers that help them keep costs low because they buy large volumes of the same materials.
3. Who Handles the Permitting Process?
Building a new home requires going through regulatory processes and securing permits. In many cases, the builder will handle the bulk of permitting, but your clients might need to participate in securing permits for site development. To prepare for this question, get familiar with your local permitting processes, and learn about which permits are required and how long the approval process typically takes.
4. What are the HOA Requirements?
If the land is in a neighborhood with a homeowners association, there might be specific requirements around what can and cannot be built. These vary significantly by subdivision or neighborhood, so make sure you have access to the covenants so you can respond to this question or provide your client with a copy of the rules.
5. What Can I Build for My Budget?
The cost of building a new home includes land, site development, and the home itself. You will know the cost of the land, but the other costs are not as easy to predict. Fostering partnerships with local builders will allow you to connect your clients with the people who can guide them through the initial budgeting process. This includes performing a site visit to estimate the cost of site development and working with the client to determine how much square footage they can get with all of the features they want. The earlier you can involve a builder in the budgeting process, the easier it will be to determine what is possible.
6. Who Should Build My New Home?
If your client doesn’t already have a builder lined up, they might ask you for recommendations. Be prepared with a list of builders you trust, and help them narrow the selections based on their budget, the style of home they’re looking for, and the availability of the builder.
7. What Features and Upgrades Should I Choose?
Your clients have a lot of choices to make when building a new home, and many people want to know what features will help increase the resale values of their investments. You know what features increase the value of homes in your area, so be prepared to share that knowledge to help your clients make smart investments and get good appraisals.
8. Can I Save Money by Doing Some Work Myself?
Clients who want to get the most for their money often want to participate in the building process. Not every builder allows this, but Adair Homes has a program specifically designed to encourage new homebuilders to generate equity throughout the building process.
9. What Is the Process for Building a New Home?
This is a difficult question to answer. The Adair Homes resource center has guides, videos, and checklists that describe the new homebuilding process. Use these free resources to educate yourself, and point clients to them so they can do their own research.
10. Should I Build or Buy?
Building a new home can feel intimidating, so many clients might still be on the fence about whether they should build or buy. There are pros and cons to each approach, but building a new home offers the flexibility of getting the features they want, a predictable timeline for completion, and the many benefits of a brand-new home. Clients don’t have to factor in renovation costs, and they know that their home will be built with modern construction techniques and materials.
If you’d like to learn more about how to answer questions from first-time homebuilders and how to get even more of these clients, check out the Adair Homes Realtor Referral Program.