There are two types of new construction homes to consider when buying new in Lake Havasu City. One is a new build already constructed and currently for resale this could be builder inventory or a spec home being sold as resale, and the other is building a new construction home from start to finish. Purchasing a lot and choosing a builder with or without a model home.
Homes already constructed and ready to purchase can be found here and on any of the search tabs on this site. They usually go into the MLS once they are in the framing stages but since pricing is changing frequently for costs of materials, etc., I have also seen them going into MLS once they are more completed so that pricing reflects accordingly.
If you’re in the market to build a brand-new home, here are some FAQ’s to know before starting the process:
1. Do I need to hire my own agent? Some people think that they’ll be OK just hiring the on-site sales agent. However, that person works for the builder and has the builder’s best interest in mind, not yours. You deserve your own agent and by using a buyer’s agent as your fiduciary, you will be able to explore your options with different builders, not just the first model you walk into. The best part is that the agent is free to you because the builder pays our commission which would be the same as what they pay for the on-site sales agent. An agent will help you negotiate with the builder on price, upgrades, and more in order to get you the best deal, help you to oversee the project especially if you are located out of town, and consult with you on what are better features/options for resale down the road. In Lake Havasu City, if your are wanting your own agent to represent you and your best interests, you will need to make sure they accompany you to any builder sales model on your first visit to sign you in. This is a customary practice here in Lake Havasu City so discuss it first with your agent and then decide which route best works for you. Once you walk into a model home (which is really a real estate sales office) without your agent, they will not be able to represent you with that builder, only the on-site sales agent. With or without your own buyer’s agent, new construction costs do not change, just your level of representation.
2. Should I pick out a lot and then the builder or vice-versa? There are many variants to that question to which consulting with your agent is highly suggested as model homes fit on different sized lots then custom homes.
3. How do I know what builder to choose? Great question! If you are working with an agent who has been in the area for some time, they will be able to consult with you and make arrangements to meet with several builders that suit the price point you are looking to build your new construction home in. Many buyers look for different things in different builders so consulting with your agent will give you the best insight on some of those recommendations.
4. Can I rely on contract time frames for my new home to be completed? Delays always happen when building a new home. Your completion date may very well get pushed back multiple times. Your agent will be able to keep you apprised of progress throughout the construction process. In Lake Havasu City, construction completion times can sometimes range from 9 to 12 months depending on complexity. Our subconstractor pool is limited so a longer (than what you may be used to in your hometown) time frame should be expected.
5. What do I need to know about choosing a lender for my new construction home? You will need again to consult with your agent PRIOR to choosing a lender when building a new home. Not all lenders are the same when it comes to this type of lending so a regular mortgage lender that you may have worked with in the past, will not be able to help you on this new construction project as they do not handle those types of loans.
6. My new home is completed, do I need to do a walk-through? There will probably be multiple walk-throughs throughout the process. If you have a strong agent on your side who knows exactly what you want to achieve, they can be your liaison between you and the builder to help facilitate your communications to them. This is particularly helpful when you are located out of the area while your home is being built. Your agent will help assist you in taking care of any issues that might arise throughout the construction process.
If you have any questions about buying new construction or real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.