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How to Create a Dream Backyard Oasis
| 8-30-2024
Choosing the Right Home Builder: What You Need to Know
| 8-27-2024
5 Essential Tips for Buying a Newly Constructed Home
With limited options in the resale market, many buyers are turning to newly constructed homes. While buying a new home can be exciting, it does come with additional steps that aren't usually part of purchasing an existing property. Here are five important tips to make your new home buying experience smoother:
1. Get an Independent Home Inspection
Even though builders must meet local regulations, hiring your own home inspector ensures a thorough review of your property. New construction homes often undergo multiple inspections, including foundation, pre-drywall, and final inspections. An independent inspector may catch issues the builder overlooks, giving you peace of mind that everything is up to standard. Attending the inspections allows you to ask questions and address concerns directly with the builder.
2. Keep the Lines of Communication Open with Your Builder
Establishing clear communication with your builder from the beginning is crucial. Whether it’s a pre-construction meeting or ongoing updates, be sure to discuss how often you'll be informed about the progress. If you’re out of town, ask for regular photo updates, or agree on a schedule for site visits. Knowing when and how you’ll communicate can help prevent misunderstandings and keep the project on track.
3. Take Advantage of Builder Incentives
One perk of buying a new home is the ability to customize it. However, these upgrades can quickly inflate the overall cost. Many builders offer incentives such as free upgrades or discounted closing costs to entice buyers. Research what different builders are offering in your area, as these incentives can help you get more for your money.
4. Plan for Potential Delays
Unexpected delays are common in new construction, especially due to weather conditions. If you’re building in a season prone to rain or snow, anticipate that the timeline may be affected. While most builders account for minor setbacks, it’s wise to allow for extra time in your own plans, particularly if you’re also selling your current home. No one wants to be left without a place to live due to unforeseen delays.
5. Visit the Construction Site Regularly
Regular visits to your home’s construction site are essential to ensure everything is on track. Even if you have an inspector, you might notice details that need attention. Visiting the site frequently also helps you document the build process, which could be useful later when your home is completed. Additionally, it gives you a chance to catch any mistakes or changes early on, before it’s too late to fix them.
Bottom Line
Building a home is an exciting journey, but it requires attention to detail and careful planning. By following these tips, you can help avoid common pitfalls and ensure a smoother experience. If you're ready to sell your current home and explore new construction options, let’s connect to discuss your next steps!
| 8-23-2024
What You Need to Know If You're Thinking About Building a Home
As the housing market continues to face inventory challenges, you may be weighing the options between buying an existing home or building a new one. While both paths have their pros and cons, the current landscape of the home-building industry presents unique factors to consider. From supply chain disruptions to labor shortages, understanding these issues can help you make a more informed decision.
Supply Chain Challenges
One of the biggest obstacles facing homebuilders today is supply chain disruption. Delays and shortages of critical building materials are extending construction timelines and driving up costs. While lumber has made headlines, it’s not the only material affected. Roofing materials, windows, garage doors, siding, and drywall components like gypsum are also in short supply.
Due to high demand and limited supply, prices for these materials have surged. This means that even when materials do become available, builders are paying more for them, which can ultimately increase the cost of your new home.
Skilled Labor Shortage
In addition to supply chain issues, builders are grappling with a shortage of skilled labor. This ongoing challenge in the construction industry has persisted for over a decade, making it difficult for builders to keep up with demand. Although recent job reports show gains in construction employment, the overall number of workers still falls short of the industry’s needs. As a result, construction projects are taking longer to complete.
What This Means for You
If you’re considering building a new home, it’s essential to understand how these challenges could impact your plans. Longer construction timelines and higher costs for materials and labor might affect your budget and timeline. While building a new home offers customization and the opportunity to create a space tailored to your needs, it’s crucial to factor in potential delays and increased expenses.
Bottom Line
Deciding whether to build a new home or purchase an existing one depends on your timeline, budget, and personal preferences. By staying informed about the current market conditions, you can make the best choice for your situation. If you need more guidance, let’s connect. Together, we can navigate the complexities of the market and help you move forward with confidence.
| 8-19-2024
Considering Building a New Home? Here’s What You Should Know
If you’re looking to upgrade your living situation, you might be weighing the pros and cons of buying an existing home versus building a new one. With the current shortage of homes available for sale, exploring both options makes sense. However, it’s important to understand that building a new home comes with its own set of challenges, largely due to factors beyond the control of homebuilders.
Here’s a closer look at some of the key obstacles that could affect your decision to build and how staying informed about the industry can help you make the right choice.
Supply Chain Disruptions
One of the most significant challenges homebuilders face today is the ongoing supply chain crisis. HousingWire reports:
"Nearly every material needed in the construction process is encountering delays and price hikes."
While lumber has been the focus of many headlines, it’s far from the only material in short supply. Builders are also struggling to obtain essential items like roofing materials, windows, garage doors, siding, and gypsum for drywall. These shortages are extending the time it takes to complete new homes as builders wait for materials. Moreover, the scarcity of supplies is driving up costs due to increased demand. HousingWire puts it succinctly:
"When supplies are low, prices inevitably rise, . . . Meanwhile, a lack of availability is causing significant delays, meaning builders are finding it difficult to stay on schedule."
The National Association of Home Builders (NAHB) echoes this sentiment:
"Builders are grappling with supply-chain issues that are extending construction times and increasing costs."
Skilled Labor Challenges
In addition to material shortages, the construction industry is also facing a shortage of skilled labor. This issue has persisted for over a decade, according to Odeta Kushi, Deputy Chief Economist at First American:
"The skilled labor shortage in the construction industry is not new – it’s been an issue for more than a decade now."
However, there is some good news. The latest jobs report indicates an increase in employment within the construction sector. Kushi comments on this positive development:
"Overall, this was a good report, . . . The supply of workers continues to fall short of demand, but the underlying momentum of the labor market recovery is strong, and falling COVID case counts provide further forward momentum."
While the labor shortage remains a challenge, there are signs of improvement that could help alleviate some of the delays in new home construction.
What This Means for You
For those considering building a new home, these supply and labor issues are crucial to factor into your decision-making process. As HousingWire notes:
"The residential construction industry is facing a crisis as builders manage the critical shortage of building materials and labor. Explosive supply and labor costs are forcing long delays. . . ."
If you’re deciding between building a new home or purchasing an existing one, consider the potential delays in construction. While building may still be a viable option, it’s important to weigh your timeline and whether you’re prepared for possible waiting periods.
Final Thoughts
Understanding the current market dynamics is essential to making an informed decision about your next move. If you’re thinking about building a new home, let’s connect. We can discuss the latest developments in our local market and help you determine the best course of action based on your priorities and timeline.
| 8-16-2024
Considering a Newly Built Home? Here’s What You Need to Know
If you’re in the market for a home, you might be leaning towards existing properties. However, with today’s limited inventory, exploring newly built homes is worth considering.
New Home Construction is Increasing
Although the current housing market has more homes available than last year, it’s still experiencing historically low inventory levels. This shortage is partly due to years of insufficient new construction to meet demand.
Recent data highlights that while the production of new homes has been relatively low over the past 14 years, it’s now on the upswing. As Mark Fleming, Chief Economist at First American, notes, this trend benefits buyers:
“While the supply of existing homes remains tight, the increasing availability of new homes presents a promising alternative. A new home at the right price can be a valuable option.”
Builder Incentives: A Key Advantage
Despite the rise in new home availability, builders are cautious, working through their existing inventory before ramping up further construction. As Logan Mohtashami, Lead Analyst at HousingWire, explains:
“Builders are managing a backlog of homes and are facing higher mortgage rates. To remain competitive, they’re offering various incentives to attract buyers.”
Many builders are currently providing incentives such as mortgage rate reductions, paying points for buyers, and price cuts. According to Fleming:
“Nearly two-thirds of builders are offering incentives, which can include mortgage rate buydowns and price reductions, making new homes even more appealing.”
Ksenia Potapov, Economist at First American, emphasizes the impact of these incentives:
“Reducing mortgage rates by one percentage point can significantly improve affordability, similar to an 11 percent drop in house prices.”
Should You Opt for a Newly Built Home?
Choosing the right home involves evaluating both new and existing options. Working with a knowledgeable real estate professional can help you navigate these choices and identify any available builder incentives.
In Summary
With a rise in new home inventory and attractive builder incentives, exploring newly built homes might be a smart move. Let’s discuss how to find the best option for you in today’s market.
| 8-14-2024
It Might Be the Perfect Moment to Consider a Newly Constructed Home
Encouraging Trends in New Home Construction
Recent data from the U.S. Census brings promising news for prospective homebuyers:
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Increase in Completed Homes: There's been a surge in newly finished homes ready for immediate occupancy, expanding your options for move-in-ready properties.
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Rise in Single-Family Home Starts: Builders have initiated construction on more single-family homes, presenting opportunities to customize these properties to your preferences.
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More Building Permits Issued: An uptick in permits for new single-family homes indicates that builders are gearing up to start even more projects in the near future.
These trends not only broaden your horizons in the housing search but also come with a host of other advantages inherent to newly constructed homes.
The Advantages of Choosing a New Build
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Personalization at Its Best
Opting for a home that's still under construction allows you to infuse your personal style and requirements right from the start. As highlighted by Bankrate:
"Building offers the chance to customize... Instead of dreaming about a particular flooring type, a sunroom, or other special features, you can design the property to match your exact desires."
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Everything is Brand New
There's a unique satisfaction in knowing that every facet of your home, from the appliances to the fixtures, is untouched and exclusively yours from the very first day.
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Reduced Maintenance Concerns
New homes typically come with the advantage of minimal repair needs. Plus, as Realtor.com points out:
"... if any issues arise with your new home, it's likely covered by manufacturer warranties, and many builders also provide additional home warranties..."
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Enhanced Energy Efficiency
Building a new home gives you the opportunity to integrate the latest energy-efficient technologies and materials. This not only contributes to a greener environment but can also lead to significant savings on utility bills over time, a boon especially when facing rising living costs.
In Conclusion
If your hunt for the perfect home has hit a wall, exploring newly built homes could be the solution you need. Reach out today, and together we can navigate the opportunities available in our local market, ensuring you find a home that truly fits your vision.
| 8-12-2024
Where Will You Go After You Sell Your Home?
Selling your home can be an exciting adventure, but it often raises the big question: Where will you go next? For many homeowners looking to sell and move, the prospect of finding the right new home might seem daunting due to the well-known shortage of available options. However, the landscape is shifting. This year, many markets have seen an increase in the number of homes for sale, and that includes both existing homes and newly constructed ones.
So, which path should you take? Should you invest in a charming existing home, or go for a shiny, brand-new one? The decision is yours, and it hinges on what matters most to you in your next home.
Benefits of Buying a Newly Built Home
If you're considering purchasing a newly built home, here are some compelling advantages to keep in mind:
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Brand New Everything: Enjoy the luxury of being the first to use brand-new appliances, materials, and finishes in your home.
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Energy Efficiency: New homes often come with modern, energy-efficient options that can help you save on utility bills while reducing your carbon footprint.
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Minimal Repairs: With everything being new, you’ll face fewer maintenance issues and enjoy peace of mind with builder warranties.
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Builder Incentives: Builders are currently eager to sell their existing inventory and are often willing to offer concessions and negotiate deals to make sales happen. This can make buying a new home more affordable.
Interestingly, the trend towards building smaller, more affordable homes means that the median price of newly built homes is often lower than that of existing homes. Ralph McLaughlin, Senior Economist at Realtor.com, notes:
"Homebuyers who are looking for that 'new-home smell' may find a friendlier market now, as new homes are often more competitively priced compared to existing ones."
Curious about what new homes are available in your area? Your real estate agent can provide valuable insights into local builders, new communities, and the ins and outs of builder contracts.
Advantages of Purchasing an Existing Home
On the flip side, there are many appealing reasons to consider an existing home:
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Established Neighborhoods: Buying an existing home often means moving into a well-established neighborhood, giving you a sense of community and familiarity before you even settle in.
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Variety of Styles: Existing homes offer a wide array of architectural styles and floor plans, allowing you to find something truly unique and suited to your taste.
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Lived-in Charm: Older homes come with character and charm that newer homes might lack, from intricate woodwork to vintage fixtures.
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Mature Landscaping: Many existing homes boast mature trees and landscaping that offer privacy and curb appeal, something that can take years to cultivate in a new home.
Beyond these lifestyle benefits, existing homes offer strategic advantages. You can always update and personalize an older home with modern features, merging the charm of the past with contemporary trends. Such upgrades not only enhance your living experience but can also increase the resale value of your home. As an article from LendingTree highlights:
“. . . they can personalize it and possibly increase its potential resale value with cosmetic upgrades . . . Plus, if a home comes with physical details or stories that add charm, in some cases, these elements are attractive enough to add to a home’s resale value . . .”
If you're interested in exploring existing homes, your real estate agent is your best ally, providing access to a comprehensive list of available homes that meet your criteria.
Conclusion
Deciding whether to buy an existing home or a newly built one after selling your current property involves careful consideration of various factors. Understanding the unique opportunities each option presents is crucial in today's market. Let’s connect so you have expert guidance to explore the available choices in our area, helping you find the perfect place to call home.
| 8-9-2024
The Top 2 Reasons To Consider a Newly Built Home
The Top 2 Reasons To Consider a Newly Built Home
When you’re planning a move, it’s normal to wonder where you’ll end up and what your future home is going to look like. Maybe you’ve got a specific picture of that house in your mind. But unless you came into this process knowing you want to buy a newly built home, you may not have pictured new home construction.
A trusted real estate agent can help walk you through these two reasons you may want to reconsider that.
1. Including Newly Built Homes Could Expand Your Choices
There are two main types of homes available on the market: new and existing. A newly built home refers to a house that has just been constructed or is still in the process of being built. An existing home is one that a previous homeowner has already lived in. Currently, the inventory of existing homes is tight, but there may be more options for you among newly constructed homes.
According to data from the Census Bureau and the National Association of Realtors (NAR), newly built homes now represent a larger portion of today's housing inventory than usual:
Between 1983 and 2019 (considered the last normal year in the market), newly built homes accounted for only 13% of the total homes for sale. But today, that figure has climbed to over 33%.
After more than a decade of underbuilding, builders today are not overextending. Even with the increase in new construction, there remains a significant housing shortage. However, for you, the rise in new builds can be transformative, providing you with more options in your search.
2. Newly Built Homes May Be More Affordable Than Expected
You might still be asking if a new build is genuinely within your reach. If you’ve previously dismissed them, thinking they would exceed your budget, it might be time to reassess. The price gap between newly built homes and existing houses is narrowing. Here's why.
Builders focus on what’s in demand, and they understand that people need more options now, especially smaller and potentially more affordable ones. That's why they’re constructing smaller homes at lower price points. The gap between the prices of new and existing homes is shrinking as a result:
As LendingTree notes:
“In the past, newly built homes have been much more expensive than existing homes — but that gap has been getting smaller recently. In some places today, you may find that the cost to build versus buy is roughly the same.”
Similarly, CNBC reports:
“While new builds are still sold for slightly more than existing homes, the price gap has significantly narrowed . . .”
Additionally, some builders are offering incentives such as price cuts and mortgage rate buy-downs to sweeten the deal. Today, there are plenty of reasons why new builds may be worth considering. Other buyers certainly seem to think so. As Freddie Mac states:
“As the supply of existing homes for sale remains low and home prices continue to rise, more buyers are choosing to purchase new homes than in previous years.”
However, it's essential to understand that buying a newly built home isn't the same as buying an existing one. Builder contracts have unique clauses and considerations. Therefore, partnering with a local agent who understands the market, builder reputations, and contract specifics can ensure you have an expert by your side to help you explore this option.
Bottom Line
If you're curious about what builders are doing in our area, let’s connect and explore the options together. And if you're open to casting a wider net to expand your choices even more, we can discuss broadening your search to include nearby towns.
| 8-7-2024
Maximizing Your Space: How to Use Shelves at Home Part 1
Perhaps you want to show off some of your child’s trophies he or she has been winning all summer long. Or maybe even pics of the wedding or family photos. Either way, shelves are right for you. They are one of the most versatile and functional pieces of furniture you can incorporate into your Montano home. Whether you're looking to enhance your décor, organize clutter, or maximize space, shelves offer a practical solution. Here's how to effectively use shelves in different areas of your home.
1. Living Room
Showcase Décor:
- Use floating shelves to display art, photographs, and decorative objects. Group items in odd numbers for a balanced look and vary the heights to create visual interest.
Entertainment Center:
- Incorporate shelves around your TV to store electronics, DVDs, and gaming consoles. This not only keeps everything organized but also creates a stylish entertainment hub.
Book Display:
- Create a cozy reading nook by using shelves to store and display your book collection. Combine books with decorative items like plants or candles for an inviting atmosphere.
2. Kitchen
Open Shelving:
- Replace upper cabinets with open shelves to create a more open and airy kitchen. Use these shelves to store everyday dishes, glassware, and cooking essentials within easy reach.
Spice Organization:
- Install narrow shelves near your cooking area to keep spices and condiments organized and accessible. Label jars for easy identification and a neat appearance.
Pantry Storage:
- Use adjustable shelving units in your pantry to maximize storage space. Group similar items together, and use baskets or bins to keep small items organized.
3. Bedroom
Bedside Storage:
- Install small shelves beside your bed to replace bulky nightstands. These shelves can hold essentials like a lamp, books, and a glass of water without taking up much space.
Closet Organization:
- Add shelves to your closet to create extra storage for shoes, bags, and folded clothes. Use shelf dividers to keep everything tidy and easily accessible.
Display Personal Items:
- Use shelves to showcase personal items like jewelry, perfumes, or memorabilia. This adds a personal touch to your bedroom and keeps your favorite items on display.
- . Use appropriate brackets or supports for heavier loads.
We can go on and on about the benefits of shelves in different areas of your Montano home and how to use them; and we will, but in next month’s blog. We have already seen how shelves can be used in your living room, kitchen and bedroom. Next, we’ll explain how to use them in your home office, bathroom and entryway. But we’ll shelf this post for now, pun intended, and pick it up next week. Stay tuned!
By Montano Homes Staff | 8-1-2024
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