With the 30a real estate market changing so quickly again, it looks like a lot of 2014 is going to involve a lot of pre-construction transactions. These transactions can become very complicated and frustrating unless every detail is covered in the contract. Our local builders have been successful in purchasing a lot of vacant land over the past 12 months and are building spec homes. These homes will continue to become available for purchase and, as real estate agents, it is very important to make sure your buyers understand that it is a “SPEC” house and not a custom home. The builders will usually allow the buyers to choose some items such as flooring color, paint colors, cabinet colors and a few other selections, however, this is still a “SPEC” home. As a buyer you must understand that if you choose to purchase a pre-construction home that these builders already have a budget and bids from the sub contractors and any big changes will be additional costs to you. I have had the experience of writing contracts for buyers on “spec” homes that are not even 50% complete and the relationship between buyer and builder becomes quite contentious because the builder is not building a custom home. As a buyer remember that buying a pre-construction home is a convenience to you and a less expensive opportunity to own a home here along hwy 30a. The cost of lots have increased, the cost of house plans have increased and so has the length of construction time not to mention the cost of materials and the sudden backlog on deliveries due to the sudden burst of new home starts.
Here are a few things to remember:
**Locking in a mortgage rate can get complicated in a pre-construction situation because there are many variables in determining an exact completion date. The builders are at the mercy of weather, delayed building materials, labor shortages and many other issues
**Communication, Communication and more Communication while negotiating the contract and through the construction process
** If a builder says it will take 8 months then expect 12.
** As a Buyer you need to be 100% committed to the process and understand that there will be ups and downs all the way through
** Make sure you have a good real estate agent representing you that will stay with you through the entire process.
Want more information about what pre-construction homes are available on 30a? Contact us today at 850.213.0890 or Homeson30a.com