The NAHB (National Association of Home Builders) published an article titled “How to Chose a Builder” and we thought it would be a great topic to blog about. The article covers a couple of key points with suggestions that will hopefully lead you to chose a builder that is the correct fit for you.
The article reminds consumers that it is important to shop for your builder just as carefully as you plan to shop for the home you plan to build. It gives three steps and then explains each of them: make a list, do your homework and shop for quality and value.
Make a List: this is important because it gives you a starting place. If you’re unfamiliar with builders in your area or if you’re moving to a new area a great way to obtain information on builders is through the local builder’s association. CSBA (Central Susquehanna Builders Association) is the local chapter for us. If you’re interested in checking them out their website is www.csbapa.org. Another way to become familiar with builders is to look at the real estate section of local newspapers. Sometimes you will find articles about builders and/or advertisements that will lead you to see which builders are active and what types of homes they build. The article states that by doing this you may find which builders built in your price point, however, custom builders don’t typically state prices in their advertisements. Make sure you use your resources, contact real estate agents, friends and family. They may have dealt with some local builders or know of someone who has. This will let you know if they have had a good experience.
Do Your Homework: since you’ve compiled a list it is important to try to find out the reputations and quality of the builders on your list. One of the best ways to learn about how a builder builds is to visit existing homes. Builders may be able to provide you with a list of addresses of homes that they built which allows a person the drive the home and see the finished product. Also, if homeowners are outside it may provide you with a chance to introduce yourself and ask them questions about their home and their builder. Remember to talk to several people to get a more honest opinion about a builder. Don’t forget a notebook and pen – take notes when talking to builders and homeowners. This will allow you to write down opinions and look over them later when you’re comparing builders. Make sure you ask homeowners if they had any problems and if so did they report them and were they handled in a professional and timely manner.
Shop for Quality and Value: Go to open houses and model homes. Make sure you look closely at each home. Look at the trim; touch the woodwork and doors. Examine the little details. Often people get swept away by the beauty when the first walk into a new home, however, upon closer examination however you may seem gaps in trim work, unfinished paint jobs, damaged or crooked switch plates, etc. Look at the cabinetry, carpeting, trim work and paint – make sure it’s of a quality you would expect in your home, not just something you could live with.
Most importantly ask questions, we understand that most people haven’t spent their lives in this industry and we’ll do what we can to make it a fun and educational experience. We’d love to build your home, so talk to us.
Friday, January 23, 2009
NAHB's Guide to Chosing a Home Builder
Wednesday, January 21, 2009
Home Buyer's Dictionary
While visiting the National Association of Home Builders (NAHB) website today we came across a home buyer's dictionary that we thought might be beneficial. We've included some of the terms in a list below. To view the list in its entirety or to locate other articles visit www.nahb.org
Appraisal - An evaluation to determine what a piece of property would sell for in the marketplace.
Appreciation- The increase in the value of a property
Buydown - A subsidy (usually paid by a builder or developer) to reduce the monthly payments on a mortgage loan.
Cap - A limit to the amount an interest rate or a monthly payment can increase for an adjustable rate loan either during an adjustment period or over the life of the loan.
Certificate of Occupancy (CO) - A document from an official agency stating that the property meets the requirements of local codes, ordinances, and regulations.
Closing - A meeting to sign documents which transfer property from a seller to a buyer. (Also called settlement)
Closing Costs - Charges paid at settlement for obtaining a mortgage loan and transferring real estate title.
Conditions, Covenants, and Restrictions (CC and Rs) - The standards that define how a property may be used and the protections the developer has made for the benefit of all owners in a subdivision.
Credit Rating - A report ordered by a lender from a credit bureau to determine if the borrower is a good credit risk.
Density - The number of homes built on a particular acre of land. Allowable densities are usually determined by local jurisdictions.
Downpayment - The difference between the sales price and the mortgage amount on a home. The downpayment is usually paid at closing.
Earnest Money - A sum paid to the seller to show that a potential purchaser is serious about buying.
Equity - The difference between the value of a home and what is owed on it.
Escrow - The handling of funds or documents by a third party on behalf of the buyer and/or seller
Fixed Rate Mortgage - A mortgage whose interest rate remains constant over the life of the loan. The payments are not necessarily level.
Interest - The cost paid to a lender for the use of borrowed money
Mortgage Broker - A broker who represents numerous lenders and helps consumers find affordable mortgages; the broker charges a fee only if the consumer fins a loan.
Mortgage Commitment - A formal written communication by a lender, agreeing to make a mortgage loan on a specific property, specifying the loan amount, length of time and conditions.
Mortgage Company (Mortgage Banker) - A company that borrows money from a bank, lends it to consumers who want to buy homes, then sells the loans to investors.
Mortgagee - The lender who makes a mortgage loan.
Mortgage Loan - A contract in which the borrower’s property is pledged a s collateral and which can be repaid in installments over a long period. The mortgagor (buyer) promises to repay principal and interest, to keep the home insured, to pay all taxes, and to keep the property in good condition.
Mortgage Origination Fee - A charge by a lender for the work involved in preparing and servicing a mortgage application (usually 1 percent of the loan amount).
PITI - Principal, interest, taxes, and insurance (the 4 major components of monthly housing payments).
Point - A charge of 1 percent of the mortgage amount. Points are a one-time charge assessed by the lender at closing to increase the interest yield on a mortgage loan.
Principal - The amount borrowed in a loan, excluding interest and other charges
R-Value - The resistance of insulation material (including windows) to heat passing through it. The higher the number, the greater the insulating value.
Sales Contract - A contract between a buyer and seller which should explain, in detail, exactly what the purchase includes, what guarantees there are, when the buyer can move in, what the closing costs are, and what recourse the parties have if the contract is not fulfilled or if the buyer cannot get a mortgage commitment at the agreed-upon terms.
Title - Evidence (usually in the form of a certificate or deed) of a person’s legal right to ownership of a property.
Transfer Taxes - Taxes levied on the transfer of property or on real estate loans by state and/or local jurisdictions
Walk-Through - A final inspection of a home before settlement to search for problems that need to be corrected before ownership changes hands.
Warranty - A promise, either written or implied, that the material and workmanship of a product is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes are either backed by insurance companies or by the builders themselves.
Zoning - Regulations established by local governments regarding the location, height, and use for any given piece of property within a specific area.
Tuesday, January 20, 2009
A Special Thank You
We just wanted to take the time to thank all our vendors and everyone that attended our green expo this weekend. We believe it was a huge success! If you're interested in learning about other aspects of the building and/or remodeling industry let us know and we'll see what we can do!
Friday, January 9, 2009
An update on the green expo
Tuesday, January 6, 2009
Spend a day learning, with us
We're hosting a Green Expo at our showcase home in the RiverHill Development, Riverside on Saturday, January 17 from 12 p.m. to 3 p.m. Several of our vendors will be on hand to discuss different products they offer to make a home more environmentally friendly. They will also be giving away some of their great products. We'll make sure to update this blog as the event gets closer. If you're looking for more information, call our office: 570-275-4444.
Monday, January 5, 2009
We hope you've enjoyed the holiday season
We spent the weekend taking down our holiday decoration and getting ready to welcome everyone in the new year. We're looking forward to spending this new year with you and will continue to update you. We'll be updating the blog layout and some posts, so please feel free to check back in a couple of days. Thanks for your continued support throught the years.