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Old 03-17-2017, 09:46 PM
 
658 posts, read 823,881 times
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What is the process to purchase a new home, I see they have a base price. Is their actual homes at that price, do you pick a lot? What is the average premium for a lot? I cannot find plot maps online to pick from on any of the builders site, seems they have very limited information compared to say like DR Horton or KB Homes in Washington etc..

I see its unlike other areas where they built and pre-set the plan and lot. Seems in Idaho you pick a lot and floorplan, not sure exactly how it works.

Do they work with contingencies, and what is the average amount to hold a house or to get it built and how long to build?

I see the builders have their own agents, could I also choose to you an outisde agent to represent us?
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Old 03-19-2017, 12:09 PM
 
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I am not a realtor, but I will give you my experience. I put a contract on a new build with a large area builder in 2014. I did use my own agent, just make sure you have your agent in place before visiting new developments.

When we visited the sales center there was a map of the development which showed the sold and available lots. Each lot had its' own lot premium. Most houses could go on any lot as long as the house would fit on the lot including setback restrictions. Each house plan had its' base price and upgraded from there. So if house plan cost 400K, the lot premium was 10K, and the upgrades were 20K, the house would be 430K. In theory you could get a house for base price, but it would be on the worst lot without any upgrades.

Most builders also seem to have some spec homes. They are listed on MLS. We bought a spec home that was still in framing, because we wanted a particular lot.
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Old 03-19-2017, 02:25 PM
 
658 posts, read 823,881 times
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Thank you, very informative. Would you happen to know if they work with contingencies?
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Old 03-26-2017, 01:48 PM
 
Location: Boise, Idaho
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I have closed brand new homes with 63 different builders here in the Boise area and there is no standardization of the process. Each builder does things similar yet different depending their volume and risk tolerance.

Some builder's base prices are for a minimum building code house (cheapest windows, roof, flooring appliances, cabinets, etc.) One builder for example even charges extra to add the "ice maker water line" to your kitchen fridge! It can be a challenge for buyers since some of the model homes are built with upgrades in place so it is hard to visualize their "base model".

Some builders want to charge you a "custom change order fee" to move a a fireplace from one wall to another. Others, will do it for no charge since they are more willing to work with a customer instead of stamp out another production home.

Some builders will only build in their communities. If you have a lot adjacent to their community, those builders still own't build on it.

Earnest money to custom build can range from 1% - 20% depending on the builders risk tolerance. Some require the buyer to get their own construction financing if the lot is outside of their communities since they don't want to take the risk of having the sale fall and then they inherit a model home that were not expecting. If the home you buy is a model home (spec home) you can typically buy it for roughly 1% of the sales price.

Contingencies will depend on the builder and if the contingency is on financing or on the sale of another home.
Builders will also factor in the competency of the Realtor you are working with. If they have worked with your Realtor before and had a good experience, that will work in your favor. If it is a brand new agent with no track record, it will be a challenge to get a contingency accepted. If you stay with fairly neutral selections, that helps too. However, if you want to put in unique colors or styles, the builders will typically want non refundable deposits in case the home doesn't close and they need to redo them back to neutral.

I highly encourage you to have your own Realtor represent you as a "buyer's agent" or possibly a "dual agent". If you buy direct from an onsite agent, they might have you sign a document that says they are working in a "non-agent" capacity for you, yet you still pay the same price for no representation. Think of human nature if something goes wrong, would the onsite agent fight for you if it upsets their "boss" and might cost them their job? If that is the only builder they represent, they typically can't afford to take that chance. Typically, most of our builders cooperate fully with outside Realtors even if they have their own on site agents since they recognize the power of marketing to the 4,000 Realtors in Ada County who can bring them future business. Pricing is typically the same if you buy with your own buyer's representative verses buying direct from the builders since the sales prices are reported in our MLS which the appraisers use to set current values for mortgages. If a builder were to discount a home they sold direct, that would impact their future sales prices negatively when they rebuild that model again!

The reason you aren't finding the level of detail on some of the builders is that KB and DR Horton are national builders that have the economies of scale to offer that level of detail on their website and they also only build in their own large communities.

Do not fall victim to "square foot for the dollar" pricing. You can pull up a number of large volume builders and see that they can vary as much as $40 a sq. ft. in their own pricing based on the architecture and style of the home. If it is a big two story box it is much cheaper to build than a sprawling single level with lots of angles and pop outs, etc.

Some builders are so busy right now, they are moving away from doing any pre-solds at all. They are just deciding what homes to build and letting buyers choose from the finish product. This eliminates all the meetings that may not bear fruit or the buyer's changing their mind taking up time for the builder who could have just built a model home knowing in this market, someone would buy it soon after it is built.

One question you didn't ask, is "How long does it take to build?" Most builders I have worked with start the clock from when they poor the foundation since they can't control how long it takes to get a building permit (days to weeks depending on city and time of year) or if the ground is to frozen or muddy to pour concrete. Once the foundation is poured, they typically quote 3-6 months for construction.

New construction homes are great for people relocating to the Boise area since they can choose the lot, home orientation, school district, budget, colors etc. I do the math backwards to determine which builders I can work with to deliver a home meeting the buyer's criteria and have the home custom built and have it ready to move in on the buyer's scheduled arrival to Boise!

I like the diversity in the new home market since it keeps my job from getting boring! Hope this helps.
Jim
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Old 04-01-2017, 06:09 PM
 
Location: South Florida, USA
164 posts, read 226,137 times
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Wow, this is really good information!
We have shied away from new construction as it is just my wife and I and we are seeking a small 3/2 under $195,000. Seems like the new construction is closer to $250K to $400K.
But who knows, are are now moving until July or August so we might have more funding then.
-Dart Humeston
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Old 04-02-2017, 08:37 PM
 
658 posts, read 823,881 times
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Great info Idaho broker, we have to toss out how new homes are sold in our local areas as Boise is very different like you said vs KB homes etc.

I saw some sites list the site premiums and the base pricing puts the house on a lot that backs to a street etc etc. Would say Hubble or CBH (I know I read the horror stories) work with a contingency, say 10% down and we pay the rest when our home sells (hopefully near completion), no mortgage hopefully if the price allows.

Of course if its a dream home (doubtful they are tract homes) then we are open to a mortgage, but not sure if we would qualify as we plan on moving first then getting a job.. LOL

We may have to go Hubble or CBH despite all the negative reviews online as we are new to the area and just to get in and build ourselves in the area, or a resale home under $300K preferable less than $275K, We are looking at Wycliff Estates, seems maybe the floorplans around or under 2,000 /sf we can just make it??
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Old 04-03-2017, 11:08 AM
 
Location: Boise, Idaho
813 posts, read 1,053,864 times
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Quote:
Originally Posted by humeston View Post
Wow, this is really good information!
We have shied away from new construction as it is just my wife and I and we are seeking a small 3/2 under $195,000. Seems like the new construction is closer to $250K to $400K.
But who knows, are are now moving until July or August so we might have more funding then.
-Dart Humeston
The least expensive I had built for a client in 2016 was $140,000 and that included the home, the lot, the lot premium and their upgrades. The home was in Caldwell, but in a great new community. We had started off talking to CBH but ended up switching to a different builder and got a bigger home on a nicer lot for less money! If that same home was in Boise/Meridian, it would have been about $165,000. There are four different builders I know of that are actively building homes in Ada County (Boise area) for under $200,000.
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Old 04-03-2017, 11:16 AM
 
Location: Boise, Idaho
813 posts, read 1,053,864 times
Reputation: 913
Quote:
Originally Posted by forzalugano View Post
Great info Idaho broker, we have to toss out how new homes are sold in our local areas as Boise is very different like you said vs KB homes etc.

I saw some sites list the site premiums and the base pricing puts the house on a lot that backs to a street etc etc. Would say Hubble or CBH (I know I read the horror stories) work with a contingency, say 10% down and we pay the rest when our home sells (hopefully near completion), no mortgage hopefully if the price allows.

Of course if its a dream home (doubtful they are tract homes) then we are open to a mortgage, but not sure if we would qualify as we plan on moving first then getting a job.. LOL

We may have to go Hubble or CBH despite all the negative reviews online as we are new to the area and just to get in and build ourselves in the area, or a resale home under $300K preferable less than $275K, We are looking at Wycliff Estates, seems maybe the floorplans around or under 2,000 /sf we can just make it??
Thank you! Yes, I have done contingency sales with both CBH and Hubble. As a matter of fact, CBH used to have a "sell to buy" program and they would refer my brokerage to help them get the home sold since they know we would get the job done for them so they could in turn buy the CBH Home. The main issue is if you get very creative on custom options, they will probably ask for some non-refundable earnest money. Both Don Hubble and Corey Barton know me personally so that helps too! I have no problem using either of them as a builder if their product is a fit for the buyer. Most of the negativity is when a buyer has unrealistic ideas and their agent isn't experienced enough to deal with the issues. Keep in mind that you typically pay the exact same price to buy direct from an onsite agent where you get zero representation verses hiring your own Realtor!
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