There’s nothing like building your own home to realize your dreams of finding the perfect living space. It might take longer than buying a resale, but many people find it is worth the wait. Here are some discussion points to review with contractors in your area.

Avoid the bidding war

This is a wild time to be a home buyer. Across the country, resale houses are getting many, many offers with prices climbing far above appraised values. You can eliminate that stress by purchasing a new home. New construction houses are sold on a first-come, first-served basis. The price is set instead of multiple buyers bidding against you. There’s no appraisal gap, meaning you don’t have to come up with more money when your lender will only fund you for the appraised value of the home. You also don’t have to waive inspections or other contingencies to get into a new build like you might with a preowned home. 

You can choose a home that fits your needs

New construction means you can personalize the house to suit your needs rather than remodeling an older home. Tall ceilings, big windows, and wide open floor plans make a house look bright and welcoming. Many developers have flexible floor plans that allow you to make changes such as enlarging closets, adding a home office, and redesigning the kitchen and bathrooms. You might want to include a private suite to make multi-generational living possible. Design your home the way you want it. 

Create your own style as you decorate

You have a clean slate going into a brand new house. Older homes may have plenty of charm, but that might also include dark, worn cabinets, shag carpeting, and outdated floral wallpaper. You can start fresh to bring in the colors and finishes that suit you. Get the gourmet kitchen of your dreams, the perfect bedroom, and a luxurious spa bathroom. Choosing everything from door knobs to backsplash tiles not only makes the home personal, it can also be fun to do!

Choose a community with great amenities

New builds are frequently in new neighborhoods with excellent amenities. You could have a swimming pool, a clubhouse suitable for parties, tennis courts, playgrounds, walking trails, or water features like a fishing lake or fountains. If you have a growing family and choose an area with good schools, you will likely find many of your neighbors are in the same stage of life. There will be plenty of playmates for your kids and new friends for you. Likewise, if you are retirees looking for an active lifestyle, there are new neighborhoods that will give you exactly what you want.

Get energy efficiency and less maintenance

A new home nearly always requires less maintenance than a resale. You can choose building materials for your new house that can reduce future problems, long-term and short-term. You also can make the new house energy efficient from the beginning. Ask your developer for the energy rating of their homes. Choose energy efficient appliances, upgrade the insulation, and more. Plan on a greener, cleaner home with lower monthly utility bills. 

You always benefit from an agent’s expertise

Many real estate agents have years of experience working with new construction homes. They can act as your advocate with the builder if something goes wrong, such as incorrect placement of a kitchen island or closet doors that aren’t the ones you originally chose. A new home purchase has many of the same requirements as an existing one. There will be the inspection, appraisal, walk-throughs, and a closing date. Your agent will help you negotiate each step, bringing value to the whole process.

There is a pride of ownership with a newly built home that is different from any other feeling. You created this special place where no one else has lived before you. It has all been customized especially for you. It just may be the choice you want to make.

Moving to a new home can be so exciting, but the move itself is a stressful, hassle-filled activity that no one enjoys. You and your family will make plans to get through the packing, moving, and unpacking as easily as possible. Everyone is in the know…except for your precious pets. They will be confused and upset by the flurry of activity with too many strange people, too many boxes, and unfamiliar surroundings. Help them make the transition to their new home by providing as many comforts as possible. 

Preparing for your move

Make sure your cat or dog has a secure and up-to-date collar with identification tags. Having your pet microchipped is always the safest choice. In the event of the worst-case scenario and your anxious pet escapes, a happy reunion is much more likely with a microchip in place.

Keep your pet’s daily routine normal in the days before the move. Bedtime, feeding times, walks, and playtime should stay the same. Introduce boxes early so they seem like a regular part of the household, but watch out for chewing puppies. They’re a bad mix with tape dispensers, bubble wrap, and boxes! 

Introduce your cat to a pet carrier early. Cats are not fond of being contained, so keep it in a quiet place with a few treats and favorite toys inside. Leave the door open so the cat can inspect it whenever she likes in the few weeks before the move. If the cat decides this is a cozy retreat, she may be more willing to stay safely inside during the bustle of moving day. Dogs are more content to stay in a small place, especially if they are already crate-trained. They, too, need familiar toys and their blanket inside the crate with them. 

Cats and dogs will be unsettled during the hectic moving day no matter where they are in the house. You will be very busy, so watching over your furry friend will be difficult. Decide if your pet would be happier in a boarding facility during packing and unpacking. Perhaps a friend would be willing to take him for the day. You can wait until after the truck is unloaded before you bring him to his new home. 

Traveling to the new address

If you are driving across town, your pet’s anxiety won’t last as long. Your dog probably loves a car ride anyway. If your cat is not a traveler, as most aren’t, keep her in the carrier which is buckled securely with a seatbelt or wedged safely with other boxes you are transporting in the backseat. For a long trip in the car, have all the essentials with you: food, water, bowls, treats, toys, chewies, leash, blanket, and kitty litter and box if you are staying in a hotel overnight. Resist the temptation to take the cat out of the carrier on the road. There is too high a risk that  your panicky kitty could make a dash out an open door or window. As always, you can’t leave a pet in the car on a hot day when you stop for a break. If possible, take turns going inside to use the restroom, and go to restaurants with drive-up windows or curbside service for meals. Dogs need to be walked during your break times. Offer water to your pet, even though they might not be interested in it while you are on the road. If your pet hates to travel, you might want to consult your veterinarian about a mild sedative to keep them calmer on the trip. 

Finding a place in your new home

Try to minimize your dog’s or cat’s anxiety as much as possible. Some pets will want to be near you all the time. Others may be more comfortable finding a quiet corner for a while. Be patient while they learn the new rooms in your home, figuring out the new sights and smells until the place feels like their own. Like you, they need time to adjust. Don’t be surprised if you hear more barking or whining, see lots of pacing, and changes in eating or “potty” routines. Eventually, it will all get back to normal. 

If your dog is used to a doggy door, give him one at your new place. If your cat is used to outside time, stay with her while she’s outside. It will be safer if you keep the cat inside for at least two weeks, however. A cat needs to feel like the new place is home before making a solo trip outside, or she may disappear. 

If you think buying new pet supplies for the new home would be fun, wait a few weeks before making the change. Sure, you may be reluctant to take a ratty old dog bed into your wonderful new home, but your pet is going to appreciate familiar favorites. The same old shredded blankets, gnawed toys, and beat up food bowls will help your pet to feel more at home. Get the new goodies later. 

Stick to your pet’s regular routine as much as possible. The same times for feeding, walking, and sleeping will help give a sense that not everything is different. Once your pet has settled in, routine changes will be easier on her. This is the time for plenty of hugs, playtime, and attention with you. The extra affection will work to alleviate bad and nervous behaviors while your pet figures out your new place is permanent and safe. 

Your long house hunt is over, and it’s time for the next chapter in your life. You finally get the keys and move in a big truckload of your belongings. Pictures go on the wall, the beds are put together, and you start to feel settled. What’s next?

There are plenty of things to count on during your first year. It’s good to plan ahead and try to anticipate as much as possible. For example, the odds are high that something will break. Maybe it will be a simple problem like a broken window pane, or it could be much more significant. Make sure you have a basic toolbox ready to go, and try to get the name of a good handyman to call when you need one. Get yourself prepared for the expected and the unexpected. 

Your First To Do List

You should have had one or more inspection reports prepared before you finalized the sale. Some of the items on the lists may have been fixed by your home’s seller, but there are likely others that you must complete. Prioritize that list. Hopefully, you had time to clean the house thoroughly before moving in. Repainting the interior to suit your tastes will help to quickly make the house your home. If there are windows without curtains or blinds, they should be at the top of your list. Fishbowl living isn’t fun!

Be Ready for Emergencies

Don’t be caught unawares if emergencies concerning your utilities come up; they will, sooner or later. Know where the water main into the house is located and how to turn it off. Check the circuit box and know which switches or fuses are which. Label them if they aren’t already identified. Learn how to shut off the gas. If you have a sump pump, test to see if it works properly. You can find multiple videos on YouTube and other sources for keeping the sump pump in working order. If you have a septic tank, be familiar with how it works and schedule regular maintenance.

Safety & Security

As soon as the house is yours, change the locks on your doors and the codes to the garage doors and other outside entrances. Be sure to make extra keys in case one gets lost. Also, find a good outside hiding place for a key so you’ll never be locked out. Learn how to use the security system if you have one. Check that you have plenty of workable smoke detectors throughout the house. Add more if necessary and put new batteries in all of them. You also need carbon monoxide detectors with fresh batteries. There should be up-to-date fire extinguishers in the kitchen and on each floor. 

Maintenance Calendar

All of the items here need to be done routinely, some annually and others more frequently. Make a schedule and perform the tasks faithfully. 

• HVAC – Learn how and when to change filters in the HVAC system. Some are washable and reusable. 
• Water heater – Your water heater needs an annual inspection by a pro. If you have hard water, the heater will need to be routinely descaled.
• Refrigerator – Clean the condenser coils quarterly. If you have a refrigerator with insulated coils, this step won’t be necessary. Check the door gasket, and change the water filter periodically. 
• Dryer hose – Always make sure the vents and duct are clean. A collection of lint is a severe fire hazard. Also, the duct opening on the outside of the house should be screened to avoid letting birds or small critters crawl up and inside. 
• Gutters – Clean the gutters annually or more frequently if you have many trees. Gutters that are full of clutter can cause serious damage to the house, including foundation damage and mold.
• Sprinkler system – Check annually for missing or broken sprinkler heads and adjust them so they shoot at the correct angles. Change timers according to the season and the amount of sunlight on your lawn and plants. 

Avoid money surprises

If you’ve moved from a smaller home, expect to have an increase in utility bills. This may be much larger than you guess. If you are moving from an apartment, you probably didn’t pay for trash pickup or water. Add them to your monthly expense list. Finally, start saving for emergencies. Some will be quite expensive, like installing a new roof, fixing a leaky basement, or replacing a cracked driveway. You might not have any of these issues yet, but they are likely to come at some point in the (hopefully distant) future.

The joy of owning a house comes with a price tag of your cash and time. Be prepared so the surprises aren’t too much of a shock when they appear. Careful maintenance and planning will help you enjoy your home to the fullest for all the years you live there.

Everything happens online now, whether it’s business conferencing, entertainment, social networking, finances, or shopping. According to the National Association of REALTORS^®, about 95 percent of home buyers look for their next property online. There are numerous sites that take you to a multiple listing service (MLS), where you will find data, descriptions, and very often photos of homes for sale. The status of listings can shift quickly, so it’s important to work with a real estate agent from the beginning of your search.

Even though you have the internet at your fingertips, working with an experienced real estate agent is critical. The internet gives you a broad look at what’s currently for sale, while your agent will give you all the nuances of the property, the neighborhood, and the community. She or he can answer all of your questions about the homes you are considering, including many details that are not found on an MLS. For example, if the house has been inspected recently, the results will likely not be shown on the MLS listing. If the zoning for the neighborhood is going to be changed soon or if the streets need drastic repair, that kind of information will only come from your agent. You can browse the internet all day and night, but rely on an agent when you are ready to get serious about the house you hope will be your new home.

Keep in mind that a real estate agent is usually paid through the sale of the property, which means you are not responsible for that fee. You have nothing to lose and much to gain when you hire an agent. They can guide you through the entire home-buying process. This is one of the biggest purchases you will ever make so make sure you have a skillful agent advocating and negotiating for you until the sale is complete.

When you first begin your search, however, the internet is invaluable for getting acquainted with the market and narrowing down to your favorites. There are several things to consider when you start looking for your perfect match. First, home descriptions are written in the most glowing terms that can be applied to the property. Likewise, smart sellers make sure the accompanying photos make the place look warm, roomy and as enticing as possible. Many houses have been staged to make the rooms look their best. You may be disappointed when you walk in the door and see it for yourself instead of through the camera’s flattering lens. Videos and 3D tours are being used more and more so be sure to study them. Frequently, the home’s condition is easier to see through a video than it is in still photographs.

Check out the home’s history. How long has it been on the market and has the price changed during that time? What are the property taxes? What information about the neighborhood is pertinent to your sale? For example, have there been many foreclosures of nearby houses? Are the homes on the street well cared for? Your agent will provide you with comps for the neighborhood so you can study the prices of similar houses that have sold in recent months. You will want to know about local schools, even if you don’t have children. This information will be important if you choose to sell sometime in the future. Check on crime rates for the area. Also, learn about how long you can expect the commute to work to be, whether you drive yourself or use public transportation.

You can find plenty of information and leads online, but rely on the expertise of your real estate agent to save you time and money. Your agent has access to multiple outside search engines giving them access to literally thousands of real estate websites. When you partner with someone who understands what you want in your next home, you are well on the way to finding your dream house.

Homeowners associations, or HOAs, are governing bodies that set and enforce the rules of a neighborhood or condominium development. They maintain common areas and oversee the amenities, covenants and restrictions of the neighborhood. There are many ways a HOA can be beneficial to you, but there are also aspects that you might find restrictive. If your new home falls under the jurisdiction of a HOA, learn all you can about it so you don’t have any unpleasant surprises.

Rules of the HOA

Your real estate agent should be able to get a copy of the HOA rules for you. Review them together so you have a good understanding of what is expected since you can count on them being enforced. Some items that may be regulated by the rules include satellite dishes, pets, exterior paint colors, plant and tree choices and fences. Parking campers, boats or commercial vehicles in front of your house may be covered. Yard decorations or hanging laundry on a clothesline may be addressed. Each HOA has its own set of rules and restrictions. You need to know what you are buying into and if it suits your personal preferences.

Learn about the annual fees

What is the cost and how will it impact your budget? Find out how much the fee costs and when it is due. Check to see when the fees were last raised and what is the process for increasing them. Know what the dues cover and if there are any additional fees collected regularly. Find out the size of the reserve fund. Ask if there are any special assessments pending? Special assessments might be for unforeseen expenses, such as storm damage to a clubhouse roof. Some also may be for periodical projects, such as resurfacing a parking lot or a big landscaping plan for a common area.

Talk to the neighbors

Chatting with a few people who live in the neighborhood can give you a good idea of what the HOA is like. Ask if it is overmanaged or if they find it difficult to deal with board members. Is the money well managed so that bills are paid efficiently? Are conflicts settled reasonably? You want to live with a HOA that does a good job taking care of the neighborhood regulations, but is not overbearing and intrusive. If you have concerns, attend a meeting before you close on your new home. You can depend on your real estate agent to provide specifics about the HOA as well.

Outstanding violations can delay a home sale

If the seller of your new home owes money for HOA violations, they need to take care of the issue and the accompanying fee before you take possession. Common violations often concern exterior maintenance, such as painting or landscaping issues. To guarantee that problems have been corrected, the title company will request an estoppel certificate from the HOA indicating the status of the violation. If the issue has not been addressed prior to closing, the closing date could be delayed. Another option is for the sellers to put money into an escrow account to cover the problem. They will get the money back once the fix is completed within an agreed time period.

There are benefits to a HOA

HOAs promote financial stability of the neighborhood and protect property values. They help residents get to know each other through community work days, social events and activities. This helps the neighborhood feel more secure and comfortable. Common areas are kept neat and amenities, such as pools, walking trails and tennis courts, are funded through fees collected from all the residents. Architectural rules keep home painting or remodeling within the original design of the neighborhood. Many HOAs pay for trash collection, pest control and snow removal.

There can be disadvantages to a HOA

You need to know the details of your neighborhood’s HOA rules to determine if they are too restrictive for you and your family. Many HOAs limit the number of vehicles allowed at each residence; if children’s backyard playset may be installed; and how mailboxes must be placed. They may dictate what exterior colors you can paint your house, whether banners or flags may be displayed, or even if holiday decorations are allowed. They may require pre-approval of exterior building plans such as storage sheds or new decks.

Be aware before you buy

Living with a HOA is usually not a problem and will enhance your neighborhood and home value. However, they are not for everybody. Educate yourself well before buying within a HOA community and decide if it’s right for you.

The old adage “cash is king” can certainly hold true when it comes to home buying. However, your investment might be safer and more productive if you take out a mortgage instead. You need to decide which way will give you the biggest bang for your buck.

Paying Cash for Your Home

• Paying with cash can put you in a better negotiating position, especially in a seller’s market. If you are up against competing buyers for the same property, your cash offer could be very appealing to the seller. Risks to the seller are far lower in accepting your offer and closing is much quicker when you don’t have to wait for a lender to approve a loan.
• Your cash purchase will eliminate some requirements that come with a mortgage, such as title insurance, appraisal fees, and closing costs.  It alleviates the seller’s concern that a buyer’s loan application could be denied. In that case, the buyer is forced to start all over with the sale — every seller’s nightmare.
• In addition to benefits for the seller, a cash purchase may also create a discount for you. The seller may be open to reducing the price a bit in exchange for the speed of a cash sale. They understand that the quicker the sale, the faster they can invest or use their money elsewhere.
• If you have a low credit score, that won’t stop you from buying a home with cash. You can avoid the hassle of providing the multiple documents required by a lender, which can slow down the process.
• You can avoid sleepless nights worrying about a big monthly mortgage payment hanging over you for years to come. Your monthly household expenses will reduce dramatically when your housing budget only needs to cover insurance, taxes, and maintenance.
• Achieving financial peace of mind is especially true if you are nearing retirement age. Although many Americans retire with years left on their mortgage, it is a bonus if you can stop working without that debt.

What Are the Drawbacks to a Cash Sale

• Tying up all your money in your home reduces your liquidity. You need to have cash available for unexpected expenses, whether it’s a cracked foundation or a medical emergency. If you should lose your income, you need enough cash to keep you afloat for a few months while looking for a new job.
• Mortgage rates are very low currently, making a mortgage loan a cheap investment. If you can put 20 percent down, you will have more room to maneuver financially and pay less than four percent in interest.
• Your money will likely perform better for you if you choose to help it grow by diversifying. Putting all your funds in one place, including your home, is a big risk. The stock market, mutual funds, or other investments are ways to grow your wealth beyond just building equity in your home. Although you may think you will save if you eliminate mortgage interest, the money might actually earn more if you put the cash to work elsewhere.
• Mortgage interest is one of the few remaining tax breaks. The higher your tax bracket, the more valuable this deduction will be for you.

As you probably expect, only a minority of housing purchases in the U.S. are made with cash. Yes, there are advantages, but do you want to have so much of your liquid assets tied up in your home? Your real estate agent and your financial advisors are excellent counselors to help you make your decision.