Between low costs and a robust housing market, it seems new construction homes are more popular in Alabama than ever. The market is especially crowded with first-time home buyers, many of whom are choosing to buy new construction homes rather than pre-existing homes. One reason for the interest in new construction (besides the economic advantages) is that the Millennial generation places a high value on features like customization, flexible space and energy efficiency — things all found more readily in new construction homes.
That being said, if you’ve never bought a home before, especially a new construction, you may be facing a rather steep learning curve. To help simplify your process, Lowder New Homes has created the following guide on how to buy a new construction home in Alabama.
Questions to Ask Yourself
Building or buying a new construction home takes a high level of commitment, so before going down this path, it’s important to evaluate your situation to make sure this is the right time for you to invest in a new home. Start by asking yourself the following questions:
- Is it better for me to rent or to buy? Home ownership is quite often preferable to renting, but it’s not right for everyone. If you’re only living in the area for a brief period of time, for example, it might not make economic sense to buy right now. This article on renting versus buying a home in Alabama should give you some insight.
- Am I financially ready to buy a home? Being a first-time homebuyer does come with some financial perks — for example, you may qualify for an FHA loan or other programs that help first-timers get into a home with a low down payment. But you still need to have a stable income and credit history to qualify for a loan. Check with your local lender to pre-qualify for a loan to let you know how much home you can afford.
- What is the housing market like? The housing market can change from month to month, affecting everything from home prices to interest rates to how easy it is to get a loan. Do a little research to find out what Alabama home buyers can expect [link here] in the coming year.
- Should I buy a new construction or an existing home? There are quite a few advantages first-time buyers have when buying a new construction home — for example, new home warranties, being able to personalize, getting established in a new neighborhood, etc. But some people prefer the charm of an older home, or they like “fixer-uppers” to which they can add their own personal touch. You must decide which is best for you.
Working with a Custom Home Builder
Once you’ve decided it’s to your best advantage to work with a custom builder, it’s time to get into the nuts and bolts of selecting an Alabama builder, choosing a subdivision, choosing a lot, choosing a floor plan, etc. You may also have the option of building a home from the ground up or choosing an already completed, move-in-ready new construction from the builder. Don’t be overwhelmed by the choices; a reputable builder understands the needs of first-time buyers and can guide you through the many decisions you will need to make.
Customizing Your Home
One of the biggest advantages to new construction homes is that you get to individualize it by choosing from a range of customized features and upgrades. Many of these choices will be based on a combination of your needs, preferences and budget. However, bear in mind that some upgrades can add to your home’s resale value, so talk to your builder about strategic upgrades you might want in case you ever want to sell.
Lowder New Homes has been building high-quality homes in the Montgomery, Alabama area for more than six decades. To learn more about your options for building a new construction home in Alabama, give us a call at 334-270-6789.