My Tips for Buying a Lot and Building a New Home

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Are you thinking about building a new home? For many home buyers, building a new home from the ground up is appealing. Understandably so. You’re able to get what you want rather than live with choices the previous owners made. You have control over paint colors, flooring, energy-efficiency and more. In fact, you’ll be able to have a home that completely reflects your lifestyle.

First off, to ensure a great experience building your dream home. take the time to do your homework.  As a Texas REALTOR®, I want to share the following tips to save you time and money.

Determine Your Budget

Before you purchase land, it’s wise to investigate the cost of building on it. Based on my experience, a good rule of thumb is to plan to spend up to 30 percent of your budget on a lot and 70 percent on your actual home. For example, if your budget is:

  • $500K = You should spend up to $150K or less on the land.
  • $1M = You should spend $300K or less on the land.
  • $1.5M = You should spend $450K or less on the land.

The market conditions, the location of the lot and the school district are among the variables that come in to play in deciding whether a lot is right for you. It’s a good time to buy in Austin because of its current and projected growth. You can find out more about Austin here: Austin Stats

Talk to a Realtor®

Find an experienced REALTOR® that knows the area well. A good REALTOR® knows information about the type of soil you’ll find in different areas of the city, the comparable prices of other homes in the neighborhood and the current market conditions. Moreover, they can be a good resource to help you choose a reliable builder.

Vet Your Builder

People frequently get into trouble because they find out too late that the builder they hired is falling short of what was promised. Even though you may pay more, hiring a builder with a strong reputation and references is worth it. Knowing that your builder is responsive to your questions and concerns goes a long way to alleviating stress. There’s nothing more frustrating than having your calls go unanswered when you need information!

Read what happened to a couple who didn’t vet their builder. Home Building Horror Story

Manage your Expectations

Overall, it’s important to have realistic expectations. Custom homes usually take between 6 months to 18 months to build. Why? Because the lot may require additional site work that’s not apparent until the building begins or suppliers run behind or the weather isn’t cooperating. Not to mention easements, zoning laws, property line restrictions and the architecture guidelines and review processes. Moreover, if you’re building a home with your significant other, don’t understand the amount of stress (and joy) this process may create. Keep the end goal forefront in your mind.

In conclusion building a custom home is limited only by your imagination and your budget. With lots of forethought, you’ll make the process an easy one. I’d like to help! Here are my lots for sale My Lots for Sale – and I can show you many more not listed here.

 

 

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