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Hi! I'm interested in hearing about experiences with purchasing new construction in a development in NH. I like the idea and the possibilities for some customization and better energy efficiency although I also worry, especially being a first time homeowner. My big concerns are cost... first, it seems that the cost per square foot is higher than in even some fairly new homes and I can't figure out why. Secondly I worry that the price may end up being higher with even minor upgrades or other issues. (I've heard developers don't want to negotiate list price?) What has been your experience- good, bad, and ugly? Basically trying to do some research to see if it is an option we should consider or not. FYI budget is MAX $400k and looking in Manchester area (but not Manchester proper). Thanks.
Cost per square foot is higher partially because costs for materials, labor and even town permitting/inspection fees are constantly rising, and costs even within the same subdivision can be very much different from the first phase to the final phase. You will want to look carefully at the standard feaures and compare it to what you would prefer. For example, many builders feature hardwood flooring in certain areas of the home, but carpet elsewhere. Or granite countertops, but vinyl flooring. The beauty of new construction is that you buy exactly what you want, and if you would prefer to upgrade yourself sometime in the future, you can do that as well. Upgrades for flooring, cabinets, etc is usually done directly through the vendor, not the builder, and while the cost is added on to the cost of house, you can see for yourself the cost of each upgrade. Other upgrades (such as adding a fireplace, or framing changes like adding/moving a window can be done directly with the builder. Structural changes to an approved plan may involve charges for engineering/architectural approval (for weight distribution, etc) and any changes AFTER framing has been completed can get very expensive.
Thatability to buy EXACTLY what one wants in regard to floor and color choices, better building codes, and the ability to chose from many different styles of home, and much more energy-efficient than homes built just a decade or two ago (still considered 'newer' construction when compared to the multitude homes build pre-1978 that could contain lead paint, and poor energy efficiency) is exactly why many folks chose new construction. Knowing also that the appliances, heating systems, etc. will have very few hours on them, and have full warranty is another attractive feature.
However, I would warn you to tread very carefully if you are considering new construction. As an agent that works new construction on a regular basis (as the developer's representative) as well as being an Accredited Buyer's Representative, I would strongly advise that you have a buyer's agent that is looking out for you, especially as a first time buyer. If you start going out to look at new construction sites, let them know that you DO have an agent the FIRST time that you visit, or they may not be responsible to pay a cooperative fee, even if this is listed in MLS (by listing in the Multiple Listing Service, the Seller's Agecy is required to pay the Buyer's Agency a portion of the sale. This is true of both new homes and resale. Your agent should be with you every step of the way.
Purchasing a resale home requires a 5-page Purchase and Sale contract, that is approved by state regulations and is a boiler-plate form that includes many contingencies-very consumer-friendly. Most builders have their own Purchase and Sale form, legal documents that have been drawn up by their legal team, and is much less consumer-friendly. NEVER enter into a contract with a builder until you have read through every word of every page, and understand fully what you are signing. This is true of the standard purchase and sale as well, but moreso, because your deposit could be less likely to be refundable with new construction.
I don't want to scare you away from new construction, because many folks are delighted with the finished product, and they are our very best source of referrals. However, when something goes wrong, you really want somebody on your side who isn't afraid to stand up to the builder. I'm hoping to see more responses here soon, to help you out.
Last edited by Valerie C; 12-14-2014 at 01:49 PM..
Reason: thought of something else...
I was going to build on some land I own (fully paid for), but after getting several bids I've found out that you pay a significant premium for building new. Apparently builders are busy again and their prices have gone up. On the other hand, existing houses haven't rebounded fully and there are lots of bargains to be had, making new construction less attractive.
I'd much rather buy a 10-20 year old house and fix it up myself for energy efficiency and aesthetics, and save a ton of money in the process. I couldn't really stomach any of the bids I got. Also, Barrington wants me to pay a $4,320 "school impact fee" before I pay them $2,000 to get my building permit. I get it, because I'm adding a house to the town that could provide additional kids to the school system, but I can't help but imagine what I could do with $4,320 in an existing house (central air, wood stove, kitchen renovation, basement finish, etc.). If Barrington wants to stop growth, they've got an excellent plan in place. That fee, combined with the high bids and the uncertainty of new construction (will I get water the first time they drill, is my contractor an idiot, cost overruns, hitting ledge, bad well water, etc.), I just don't want the headache.
I am very handy and enjoy home improvement projects, so an existing house is a blank palette for me to do whatever I want. Also, most of the people I talk to that have had a house built have told me that it's one of the most stressful experiences of their lives, with horrible contractors cutting corners or coming in way over budget, and many would never do it again. I don't need that kind of stress in my life.
Thatability to buy EXACTLY what one wants in regard to floor and color choices, better building codes, and the ability to chose from many different styles of home, and much more energy-efficient than homes built just a decade or two ago (still considered 'newer' construction when compared to the multitude homes build pre-1978 that could contain lead paint, and poor energy efficiency) is exactly why many folks chose new construction.
I specifically limited my search to post-1980 houses, in part to avoid lead paint, aluminum wire, and asbestos insulation.
Similarly, I avoided more recent construction in big dense developments, in part because I didn't want to deal with restrictive covenants or a HOA, and also because I wanted more than a fraction of an acre.
Quote:
Originally Posted by someday73
Basically trying to do some research to see if it is an option we should consider or not. FYI budget is MAX $400k and looking in Manchester area (but not Manchester proper).
I would consider new stock, but put most effort looking at houses built before the "bubble".
I just went through the entire experience of building a new home, in the Manchester area, with the same budget you have. You are definitely valid with your concerns about cost overruns with new construction. In the end, we are very happy with our new house, although if I had to do it over again there are some things I would do differently. If you have specific questions, send me a private message...I'd be happy to share my thoughts with you.
Thanks everyone for your helpful guidance. I think new construction is not the best choice for us right now for a variety of reasons. This was helpful!
Have you considered a modular or sectional home? The designs available and quality of construction are the equivalent of or better than stick built with considerable savings. And you can order your new home and move in 2 or 3 months.
Dale's Homes in White River Junction, VT is the NH agent for Ritz Craft homes. See below.
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