The Charlotte real estate market is one of the hottest markets in the country and the number of buyers exceeds the supply of existing homes available for sale. Inventory is low, while demand remains high, and the competition for homes is fierce. Charlotte area home builders are the beneficiaries of this housing shortage. Due to this severe shortage, many Charlotte area home buyers are increasingly considering new home builders in Charlotte NC area. New construction in Charlotte NC offer a great alternative to the frustration of repeatedly losing bids to competing buyers in multiple offer situations. If you are considering new housing developments in Charlotte NC, here are 11 Important Things to Know when working with Charlotte area home builders:
Differences Between Charlotte Area Home Builders
Let’s use the analogy of car manufacturers. There are distinct differences in style, workmanship and quality between a Ford and an Acura, or a Mercedes and a Buick. The same is true for home builders. Each builder has its own unique style, quality, workmanship and target markets. There are affordable home builders, luxury home builders , move-up home builders, production home builders, and custom home builders to name a few. Many have such a distinct style and quality of workmanship that a savvy real estate agent can walk into a home and immediately identify the home builder that constructed it. So do your homework and evaluate the Charlotte area home builders you’re considering.
Sample of New Construction Homes Charlotte NC
Most New Homes in Charlotte NC Are Not on Real Estate Websites
When looking for new homes online, be advised that the majority of new construction homes are facilitated from buyers contracting directly with builders for the homes they have chosen to build. Consequently, because builders already have buyers for their homes, there is no need to market them through the MLS or real estate websites like Trulia, Zillow, Realtor.com, and agent websites. There may be a few select “Quick move-in” inventory homes that a builder may build for those who want new construction without going through the building process. But you’ll generally see just a sample of the available new construction homes for sale.
Understand Agency Relationships
When visiting model homes and talking with the sales staff, understand that the in-house sales staff is employed by the builder and has a fiduciary duty to protect the interests of the builder as their employer. In some cases, the salesperson may not be a licensed agent which is not required for home builders. Be careful not to divulge personal information that could jeopardize your bargaining position with the builder. If you have a Realtor working on your behalf, be sure that the builder rep knows that. Otherwise, you may not be allowed to have a Realtor represent you when it comes time to contract with the builder. Ultimately, it is in your best interest to have your own representation when working with Charlotte area home builders. To use another analogy, it would be like going to court having no legal representation while the other side has a staff of competent attorneys representing them. It places you at a significant disadvantage with the builder.
Tips For Working With Charlotte New Home Builders
Don’t be surprised to be blown away when walking into builder model homes. That’s the builder’s intent. Many buyers will walk into a model home and say “This is exactly what I want”, but builder models are loaded with expensive upgrades, so be aware of the added costs that can add thousands of dollars to the price. When evaluating neighborhoods and starting prices, you may want to factor in $10,000 to $20,000 above the base price to estimate what your final price will be. Also recognize that many builders offer financial or product incentives if you use their preferred lenders and settlement agents. Incentives can range from closing cost assistance to appliance packages, upgrades and more. However, builders are very reluctant to negotiate much on price, which they base on the cost to construct plus their markup. They will also want to protect the values of the homes they build and the integrity of the overall valuation of their communities.
Building Charlotte NC New Construction Homes – The Process
The typical timetable for building your home will generally be a six month process. It is advisable that you and/or your agent be diligent in monitoring the construction of your home. Be sure to hold the supervising superintendent accountable. There are many checks and balances in the homebuilding process, but ultimately the success of the project is directly tied to the knowledge and expertise of the superintendent and how he manages the construction of your home.
Benefits of Working With a Realtor With New Home Construction
A knowledgeable Realtor expertly trained in new home construction is the best source of information for all Charlotte area home builders, and can be an invaluable resource in this process. From protecting your interests to researching and evaluating different builders, communities, floorplans and locations, an experienced Realtor will have full knowledge of all builders and can assess the quality and reputation of each.
Cost to Build a House in Charlotte NC
Some may wonder whether there is more or less cost to build a house in Charlotte NC than to buy an existing home. Well, it all depends. Either way, the difference is not generally significant. Much depends on timing and market conditions. With prices of resales rising due to low inventory, new build home pricing can be locked in at contract months in advance. There is no competitive pressure on pricing due to multiple bids as there is with resale homes. You’re the only “bidder” when you choose to build new home construction Charlotte NC. The extent of any competition would be limited to securing premium homesites within a community such as cul-de-sac, basement or large lots. Also, the home and all components are under warranty, saving any potential repair costs in the early years which can be an issue with resale homes.
Charlotte Custom Home Builders vs. Production Builders
Production builders are your typical national and regional builders that most people have seen and are familiar with. They develop and build several communities in each of their markets and may have communities with hundreds of homes constructed using an “assembly line” process with limited flexibility for modifying features and floorplans. Custom builders will be mostly smaller local builders and will have more of a “craftsman” construction process. A buyer will likely need to purchase a homesite separately, but many custom builders will have an inventory of lots in neighborhoods they build in. Custom construction will usually have a longer timeframe of 7 – 12 months and can offer extensive flexibility to modify floorplans and features.
New Home Communities Charlotte NC – What’s Included?
What’s included in the base price of new homes depends on a number of variables such as the builder pricing structure or the price point of the community. Builders that construct starter homes may charge extra for most any upgrade above the basic features offered. However, many upgrade features will be included in move-up and higher end homes such as hardwood floors, granite, tile and such. Builder communities will usually have some premium lots that carry an additional cost.
Upfront Money Requirements for Charlotte Area Home Builders
A typical required deposit can range from a few thousand dollars for the affordable new homes niche to 3%, 5% or up to 10% or more for higher-end and luxury home builders in Charlotte NC. These deposits can be non-refundable if a buyer decides to cancel. There will be additional upfront deposits payable for upgrades and design center selections of as much as 50% of the cost of the selections.
Inspecting Your Newly Constructed Home
Although everything will be new and under warranty, it is still smart to have an inspection service check the home during construction (pre-drywall) and again upon completion of construction, either before closing, or prior to the one-year warranty period expiring. There are hundreds of elements that go into constructing a new home. Work is performed by several subcontractors. Even though the builder will perform several internal inspections and the property is subject to local building code inspections, it’s still a good idea to have an independent inspection performed by an inspector of your choice for added peace of mind in knowing that you’re getting a well built home.
There are several advantages to working with Charlotte area home builders. Contact us for more information on the top rated home builders in Charlotte NC!
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