Considering Buying a New Construction Property In South Florida?

Considering Buying a New Construction Property In South Florida?

If you’ve been looking for your South Florida dream home recently, you’ve probably noticed that there are a lot of developers looking for people to purchase homes that haven’t actually been built yet. That can be a good thing for buyers, many of these homes will be sold at higher prices once they are built, but there are some important things you should know before you commit to one of these properties.

Here are the key things you should consider. And remember, sometimes these new construction homes are a great investment, but that doesn’t necessarily mean they are right for you.

Long Construction Wait

Especially if you’re looking to buy new construction in South Florida, you need to be prepared for a longer wait to have the home finished.
There are a few reasons that new construction can take a little extra time in South Florida. For one thing, there is enough incoming demand that many companies consider taking their new construction to market earlier than they would in another area.

But the biggest single contributing factor is the availability of construction workers and contractors, and the supplies they need to finish the job. Many of these critical workers and supplies get caught up in repairing homes and dealing with updates and changes to local infrastructure, which means that a lot of new construction takes a back seat and ends up waiting for more availability.

Competition

South Florida is one of the fastest-growing regions in the United States, which means that there is a lot of demand for properties, including new construction.

That means that you might have more competition than average for the new construction homes in South Florida. Because demand is higher, you can also expect to pay closer to market rate for these homes since developers have less incentive to keep prices low to defray construction costs.

You May Need a Different Kind of Loan

When you’re buying a new construction home you should be prepared that you might not be able to get a traditional mortgage for that property.

Instead, you may need to get a home construction loan, which is a higher-interest short-term loan. This matters because the home needs to be constructed within a year under most of these loans, so developer delays can cause significant problems. Before buying new construction, make sure you know what their current anticipated timeline is, and what kind of loan you’ll need for the purchase.

The good news is that you can typically convert a home construction loan into a typical home mortgage once the home is constructed and you’ve moved in.

The Details May Change Before It’s Finished

This is true of any major building project, but it’s important to remember that some of the details of your home might need to change along the way. If the construction team can’t source the exact materials they need for part of the building they might decide to go with a close equivalent of that material instead.

Sometimes that might change the price of the building, sometimes it won’t. Usually, if changes are made they will lower the price of the building rather than increasing it.

The good news is that these kinds of changes are almost always minor, but you shouldn’t get attached to the specific crown molding, light fixtures, or door handles in the model building. Your home should be very similar when finished, but the exact details aren’t guaranteed unless it’s in writing.

Ready to Find Your South Florida Dream Home?

If you’re looking for your South Florida dream home, you aren’t alone! This is a competitive and high-stakes market, so it’s important to have someone in your corner helping you find the best properties and making sure you’re ready to put in an offer right away when you find the right home.

The good news is that Great Florida Homes is prepared and ready, no matter what kind of home you’re looking for. We excel at finding homes that meet all our clients’ requirements, often exceeding their expectations, while still keeping location and price point in mind when we’re finding the right properties.

Let us help you find your South Florida dream home, without all the stress, mess, and difficulty of doing it by yourself. Contact Great Florida Homes so we can get started right away!