New construction in Tampa is booming. As our city grows and attracts more residents, more potential homebuyers are considering building new. It’s an attractive option, especially in this market, and a great opportunity to build your dream home. However, it can also be a complicated, expensive and lengthy process, so it’s important to have an experienced real estate agent who can help navigate the journey with you.
4 things to consider:
1. Builder Reputation Matters
There are so many options when trying to decide on a builder. Try to get personal recommendations, read reviews and speak with past clients. Get a feel for a builder’s ability to meet deadlines and their communication style to make sure your expectations will be met. Understanding how they handle change orders and regularly communicate updates to you is also important.
2. Land Ownership Comes in Different Forms
Some builders will already own the land and finance the entire cost of the project while you make deposits along the way. If you already own the land, you will need to understand who will be responsible for lien filing and releases and how you will finance the building process. And if you plan to purchase a lot separately, an experienced agent can help you in this competitive market where land is sometimes sold off-market.
3. There are Multiple Financing Options
There are a number of ways to finance a build and this can vary depending on who owns the land. Three common approaches are:
- The builder finances the project and you make a large deposit at time of contract
- Finance the entire project through a bank using a construction-to-perm package
- Pay cash for the land and then pay a builder based on a draw schedule tied to achieving project milestones
4. Builder Processes Can Vary Significantly
Some builders require you to make all selections upfront and others allow you to sign off on change orders as you go. Many builders will only do spec homes (move-in-ready home), while others will allow a completely customized approach with an architect. Others allocate allowances for key areas of the build and you can make selections within that budget or pay for cost differences. It is key to understand what is included in your price and the budget allocations for all areas of the build. Make sure you feel comfortable with their partners in the construction process, such as the interior designer & subcontractors.
One size does not fit all but we have a good feel for the many options available in our marketplace and can help you find the right fit to build your own dream home. We also have contacts in the industry to help review financing options, source and evaluate land, and help with design. And remember, real estate agents are paid by the builder, not the homebuyer, so there is no cost to you for the services an agent provides.