Newly Built Homes Could be a Game Changer
Buying a home this spring? You’re probably navigating today’s affordability challenges and dealing with the limited number of homes for sale. But, what if there was a solution that could help with both? If you’re having a hard time finding a home you love, and mortgage rates are putting pressure on your budget, it may be time to look at newly built homes. Here’s why. New Home Construction Is an Inventory Bright Spot When looking for a home, you can choose between existing homes (those that are already built and previously owned) and newly constructed ones. While the number of existing homes for sale has increased this year, there are still fewer available than there were in more typical years in the housing market, like back in 2018 or 2019. So, if you’re looking to expand your pool of options even more, turning to newly built homes can help. As Danielle Hale, Chief Economist at Realtor.com, explains: “The shortage of existing homes For Sale has opened up the possibility of new-home construction to more buyers who may not have once considered it.” And the good news is, there are more newly built homes to pick from right now. The graphs below use data from the Census to show how new home construction is ramping up in two key areas (see most recent spike in green): Starts, or homes where builders just broke ground, have seen a big increase lately. And completions, homes that builders just finished, are also up significantly. So, if you want a new, move-in ready home or you want to get in early and customize your build along the way, you have more options right now. Builders Are Offering Incentives To Help with Affordability And to sweeten the pot, builders are offering things like mortgage rate buy-downs and other perks for homebuyers right now. This can help offset today’s affordability challenges while also getting you into your dream home. Mark Fleming, Chief Economist at First American, explains why you may find builders have more wiggle room to offer more for you than the typical homeowner: “Builders aren't rate locked-in. They would love to sell you the home because they're not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.” An article from HousingWire also says this about what builders are offering right now: ". . . the use of sales incentives still shows some momentum as 60% of respondents reported using them, up from 58% in February. " Just remember, buying from a builder is different from buying from a home seller, so it’s important to partner with a local real estate agent. Builder contracts can be complex. A trusted agent will be your advocate throughout the process. They’ll be your go-to resource for advice on construction quality and builder reputation, reviewing and negotiating contracts to get you the best deal, helping you decide on which customizations and upgrades are most worthwhile, and a whole lot more. Bottom Line If you’re struggling to find a home to buy, or with today’s affordability challenges, let’s connect to see if newly built homes could be the solution you’re looking for.
Luxury and Elegance Await at 4945 Noble DR NW, Rochester, MN 55901
Welcome to your dream home! Nestled in the The Ponds Of Highland Hills in Rochester, MN, this stunning new construction custom rambler at 4945 Noble DR NW is a masterpiece of craftsmanship and elegance. With a listing price of $779,101, this home offers luxurious features and a truly exceptional living experience. As you step inside, you'll immediately be captivated by the seamless blend of luxury and comfort. The hardwood floors throughout the open-concept living space exude warmth and sophistication. The focal point of the living room is the grand fireplace, perfect for cozying up on chilly evenings or creating a welcoming ambiance for gatherings with loved ones. Prepare to be inspired in the gourmet kitchen, which boasts custom cabinets, a large center island, and high-end appliances. The stylish design and practical layout make this space a haven for culinary creativity. Whether you're cooking for a crowd or enjoying a quiet meal at home, this kitchen will exceed your expectations. One of the highlights of this home is the covered patio off the kitchen, providing the ideal setting for al fresco dining or simply relaxing with a glass of wine. Imagine spending summer evenings enjoying the fresh air and tranquility of your outdoor oasis. The indulgence continues in the eprimary bathroom, where you can pamper yourself and unwind after a long day. Complete with heated floors and a luxurious walk-in shower, this bathroom offers a sanctuary-like experience that will leave you feeling rejuvenated and refreshed. Beyond its impeccable design and luxurious features, this home is situated in a sought-after location in Rochester, MN. With easy access to amenities, shopping, dining, and entertainment options, you'll have everything you need right at your fingertips. Don't miss the opportunity to make this dream home yours. With its unparalleled craftsmanship, elegant design, and exceptional living experience, 4945 Noble DR NW is a true gem in the real estate market. Schedule a showing today to witness the beauty and allure of this exquisite property.
What Every Homebuyer Should Know About Closing Costs
Before making the decision to buy a home, it's important to plan for all the costs you’ll be responsible for. While you're busy saving for the down payment, don't forget you’ll want to prep for closing costs too. Here’s some helpful information on what those costs are and how much you should budget for them. What Are Closing Costs?A recent article from Bankrate explains: “Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .” Simply put, your closing costs are the additional fees and payments you have to make at closing. According to Freddie Mac, while they can vary by location and situation, closing costs typically include: Government recording costs Appraisal fees Credit report fees Lender origination fees Title services Tax service fees Survey fees Attorney fees Underwriting Fees How Much Are Closing Costs?According to the same Freddie Mac article mentioned above, they’re typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to budget. Let’s say you find a home you want to purchase at today’s median price of $384,500. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,690 and $19,225. But keep in mind, if you’re in the market for a home above or below this price range, your closing costs will be higher or lower. Make Sure You’re Prepared To CloseFreddie Mac provides great advice for homebuyers, saying: “As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs.” The best way to do that is by partnering with a team of trusted real estate professionals. That gives you a group of experts to help you understand how much you’ll need to save and what you’ll want to be prepped for. It also means you have go-to resources for any questions that pop up along the way. Bottom LinePlanning for the fees and payments you'll need to cover when you're closing on your home is important. Partnering with a local real estate professional can give you the guidance and confidence you need throughout the process.
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