Home Purchase: Build To Order?

[Ja Rhule]

That area won't be empty for a long time. I went by it yesterday and it seems like they breaking grounds all over the area for new homes. I really like that I can pick my own lot.

[Carolina Husker]

I'd wait. Got it on good authority that the economy is going to collapse when the New World White Knights Order overthrows the Notions Oppressors in the Battle for Enlightenment. That can't be good for home prices.

Or something.

[Ja Rhule]

Charlotte has one of the cheapest housing markets for big cities in the nation. Not sure how far it will dip. Interest rates dipped today. I guess the market is not as good as advertised.

[Niner National]

wait so does the builder have to build in the neighborhood or will they build anywhere?

I would never buy in one of these neighborhoods that have few homes in them or are half built. There is just too much risk that you end up with a dirt pile and overgrown land beside your house for years.

I would also never buy in a neighborhood with homes that are mostly vinyl siding. These neighborhoods look like poo in about 10 years. My friend just bought into one of these hoods in Fort Mill that is only 4 years old and the houses there are already starting to look beat...and people don't take care of their yards.

These things will all bring your house value down.

[Cat]

Yea, its one builder. Builder has 6 blue prints I can choose from. When I choose the house I want and lot I want, they will build it for me. What are my chances to get a reduced price on brand new home? They got 60 lots but so far only 8 houses were build.

I love the idea of building a new home and picking everything out. However I'd really take the time and look at exisiting homes. In this market people are absolutely desperate and you could get an amazing home for much less then you'd expect. It wouldn't hurt to atleast look at whats out there.

The house beside us was pruchased for $320k 2 years ago which was a great deal, but the newly retired couple that bought it had come down from Philly and the man developed horrible allergys. His doctor told him he needed to move away from CLT because apparently this is one of the worst places for allergies. Anyways they sold their house in 1 week because they listed it at $260,000 because they had to move and he was unretiring and going back to work at the hospital. It killed our neighborhood's value but our new neighbors got a fuging steal. Georgous all brick home, 1/2+acres, 3500 square feet, irragation in CLT for $260,000. you can't beat that.

Also building in an undevelped neighborhood is risky.

[Ja Rhule]

Just went by there today again. They got 60 lots but only 28 for sale right now. Out of 28 there are already 8 houses near completion and 10 more lots have "sold" sign on em. The lot I really like will have neighbors on all sides.

[charlotte49er]

As far as the loan goes, it depends on the builder. Normally, you get what is known as a Construction Loan. These are high interest, but short term loans. (The banks are going to get their money.) Usually they are paid out in 1/3rds. 1/3 at the beginning of the construction, 1/3 when the framing is finished and a 1/3 when the interior is finished. (Several times at the time of inspections are signed off.)

If the builder takes longer thant her terms of the Construction Loan, highly doubtful in this economy, then you have to get a Bridge Loan. This is a loan betweeen the short term Construction Loan and your long term mortgage. (Again, highly unlikely in this economy.)

Once your construction is finished, Home passes all inspections, and you are ready to close then you get your actual mortgage. and you close on that. Your low insterest 15 or 30 year mortgage loan pays off your high interest construction loan.

[thefuzz]

This is what I do for a living.

Selling new homes from floorplans in new developments.

We are selling like crazy in Wilmington.

Talk to the salesperson, tell them you are interested, and find out how to go about financing the home. If they have not already told you that, you may have a poor salesman on your hands. Either that, or you have been stonewalling.

Let me know if you have more questions, and possibly I can give you some tips.

[Ja Rhule]

We'll do. Meeting my real estate agent tomorrow. I'll keep you updated. Thank you!

[thefuzz]

We'll do. Meeting my real estate agent tomorrow. I'll keep you updated. Thank you!

Your agent is going to promise you the world, don't get discouraged if the builder comes back at the original price if you submit "an offer". The builders these days are working under the tightest of margins, and there is not much wiggle room. Not to mention they are not going to devalue the neighborhood to sell one home. They have 59 more to go.

I will help, just let me know.

[Davidson Deac II]

As far as the loan goes, it depends on the builder. Normally, you get what is known as a Construction Loan. These are high interest, but short term loans. (The banks are going to get their money.) Usually they are paid out in 1/3rds. 1/3 at the beginning of the construction, 1/3 when the framing is finished and a 1/3 when the interior is finished. (Several times at the time of inspections are signed off.)

If the builder takes longer thant her terms of the Construction Loan, highly doubtful in this economy, then you have to get a Bridge Loan. This is a loan betweeen the short term Construction Loan and your long term mortgage. (Again, highly unlikely in this economy.)

Once your construction is finished, Home passes all inspections, and you are ready to close then you get your actual mortgage. and you close on that. Your low insterest 15 or 30 year mortgage loan pays off your high interest construction loan.

Yep, this is what I did, and thats about how it went.

Might be a good idea to check the construction company though, to ensure that they are reputable and aren't in any trouble financially. Mine went out of business a few months after they built my home, and it caused some warranty issues. The Seller company eventually took care of everything, but it was a hassle for a while.

[thefuzz]

Also if it's a "strong" enough builder, he may finance it himself after you get a loan approval for the full price of the home.

Would be better for you if that's the case. But not many builders are that strong any more.

[Hairless Cat]

This is what I do for a living.

Selling new homes from floorplans in new developments.

We are selling like crazy in Wilmington.

Talk to the salesperson, tell them you are interested, and find out how to go about financing the home. If they have not already told you that, you may have a poor salesman on your hands. Either that, or you have been stonewalling.

Let me know if you have more questions, and possibly I can give you some tips.

Not really doubting what you say but a short drive away its the complete opposite- lots of zombie developments- I dont see why- take a look at these listings and all the land forclosures--just where are the people who are buying in Wilmington coming from and who are they? When I moved out of New Hanover Cty 7 years ago there was almost no land left to develop.

http://www.brunswickcountyforeclosures.com/land-foreclosures.html

[thefuzz]

Not really doubting what you say but a short drive away its the complete opposite- lots of zombie developments- I dont see why- take a look at these listings and all the land forclosures--just where are the people who are buying in Wilmington coming from and who are they? When I moved out of New Hanover Cty 7 years ago there was almost no land left to develop.

http://www.brunswick...reclosures.html

Brunswick County is all you have to say.

It's not the same. I worked in BC for the past 2.5 years, and the sledding is tough. No young folks want to live there.

The folks that are buying homes right now, are the 25-35 age group that in the past has rented for ever, or lived in very small older homes. Now with the interest rates at 3.875, and the new home prices between 160-250 even your auto mechanic/waitress family can afford a 2500 sqft home.

Not just college educated folks. If you have anything over 600 credit score, and can come up with $1,000 you can buy a home.

Had a young girl come in the other day with a 700 credit score, that made 35K per year, had no debt, and got approved for 170K.

You don't have to be a doctor or work at PPD to afford a home right now. And the banks are salivating over people with decent credit.