Unlike buying a new car, new homes don't loose their value as soon as you buy them. In fact, they can be a better investment than a used home if you choose the right builder and have your home built in the right location. New homes have come along way over the years and if you want the latest and greatest in your next home, new construction is the only way to go. Finding the right location, however, can be a bit hard if you don't know what you're looking for.
New Construction Homes have all of the latest energy efficient and smart home functionality. Getting a new home warranty is another benefit when buying a new construction home. While you can buy a home warranty with a used home, it normally only covers the appliances and minor coverage on the systems of the home like electric, plumbing and HVAC. The State of Mississippi mandates that all new home builders must warrant their home's build quality and systems for 1 year and structural for 6 years. Check out the Mississippi Home Warranty Act for more information.
There are many pitfalls in building a new home, so we decided to go over a few of them here. All agents at NextHome E-Realty have worked for multiple builders and have vast knowledge in new home building along the Mississippi Gulf Coast. While many builders try to take care of their customers, many do the minimum to get to the end. There are really two types of builders you will be dealing with in single family residential homes. The first is a Production Home Builder which builds you a home with hardly any changes that you can make. The second type is a Custom Home Builder which is just the opposite. They do mainly what their name suggests... build you a custom home that fits you exactly down to the door knobs and plumbing fixtures. Let's take a closer look at both types.
Essentially, production home builders build the same homes over and over and they've gotten very good at it. The more efficient they get at it, the more they can bring down their cost of the home and pass that saving along to you. Production builders also build on their own lots in their own subdivisions that they sometimes have developed. The main three production builders on the Mississippi Gulf Coast are Adams Homes, DR Horton and DSLD Homes. All offer to pay closing costs as long as you use one of their preferred lenders. While value seems to be the biggest focus for production builders, they don't give you the ability to make changes to their plans. This means that you will most likely have to compromise on your home's design.
If production home builders offer the best value, custom home builders offer you the best design... at a price. So if you need some specifics in your next home, custom home builders offer you the best peace of mind because ultimately, you'll be the one having to live in the home. There's nothing more annoying than to be reminded daily you should have chosen to build your home differently after you move in. Having a home builder that asks the right questions eliminates this way up front. You need to discuss how you live in the home, not just how many bedrooms and bathrooms you need. The most well known custom home builders along the Mississippi Gulf Coast are Elliott Homes, Fritz Homes, Shepard Homes and Sapphire Homes.
While all builders have to build your new home to the local municipal building codes, some builders stand out over others in areas that benefit the buyer beyond build quality. What you really want in a builder is one who gives you a custom home at a production price... or as close to a production price as possible. How you ask? You need to find a house plan that a custom builder has already built more than once. The reason custom homes cost more is that the builder has not built it before and they have to add a "fudge factor" to cover issues that will come up. I'm not saying some issues may come up... they will come up and the builder has to calculate these in to their cost. The issues are mainly unknown because the builder is building it for the first time and the house plans, while look perfect, never are perfect.
The reason you want to meet with a custom home builder is to see the house plans they have built before. From there you can make changes to these house plans and not start from scratch. The builder already has hard numbers on his previous builds and has already worked out the corrections to make the build more efficient... which means lower cost to you. One of the custom home builders that stands out from the rest is Elliott Homes. Not only will they make changes to their previous builds, which means a lower cost to you over a true custom home build, they will also purchase the lot of your choice and sell you the home and lot as a package. You may not think this is a big deal, but they are the only home builder on the Mississippi Gulf Coast to do so.
Let's take a closer look at what this custom home and lot package by Elliott Homes really means. If you want to build outside of the builder's subdivisions, you will need a lot or acreage to build on. Normally, custom home builders require you to purchase the lot on your own and then apply for a construction loan with a local bank. Banks will require 20% down to gain approval... then you hire the custom home builder to build your home. As the builder builds, they get paid in stages called "draws" which normally are broken up into 5 phases. As the builder gets paid from the bank, you make payments to the bank on the money released. Yes, you make loan payments on a home you can't live in... it's just part of the custom home build process. Now, lets look at what Elliott Homes provides....
1.) You pick the location (lot or acreage) within reason.
2.) You pick one of their plans and make some changes if needed.
3.) You sign their contract and put down earnest money.
4.) They build your home at your location.
5.) You go to closing to purchase the custom home and lot package as one.
No payments are made while your home is being built because Elliott Homes also provides the construction financing. This saves you a lot of headache dealing with the banks if you are not familiar with the new home construction process and language. So, if you're ready to have the best of both worlds, give us a call at (228) 697-4636 to get started. We can also meet with you to discuss which new construction home builder is right for your needs and your budget. You can also take a look at some of the new construction homes for sale in the Biloxi, Gulfport, Ocean Springs and other areas by clicking on the Home Builder links below.
The next step is to give us a call at (228) 697-4636 to start the design process. It normally doesn't take very long... getting to know you and what you are looking for in your new home will be fun. We'll be looking at house plans and narrowing down how your next home build will be a positive one.
Building a new home can be very rewarding if done properly. We spend a good deal of time "sharpening the axe". The more time we spend in the beginning, the better the build will go in the end.
Remember to contact us here at NextHome E-Realty first before contacting any new home builder. They have their own sales staff representing the builder's interest and we will be representing your interest. The great part about having Smart Design Properties on your side is that it cost you absolutely nothing. We get paid by the builder, but as the state mandates... we represent you! If you have already visited the home builder's model home, it's okay! We can still represent you as long as you have not signed their construction agreement yet. So, contact us now to get started!