Houston New-Development House Shopping for Course of, Execs & Con’s

All issues you’ll want to know in regards to the good, the dangerous, and the method.

Is it higher to spend money on a brand new building house or an present property in Houston?

This determination might rely in your objectives, preferences, and price range.

This text will show you how to perceive the professionals and cons of shopping for a new-built house and the method concerned.

Once you stroll by a brand new building neighborhood, the on-site agent is sweet and pleasant – however they don’t characterize the client.
They characterize the builder. Their job is to the get the builder the highest greenback and the most effective circumstances.
Ensure you have an agent in your aspect whenever you’re contemplating shopping for a brand new house.

Desk of Contents

  1. Execs Of New Development
  2. Cons of New Development
  3. Keep away from Status-Challenged Builders
  4. Construct Your Crew To Assist You Get The Greatest End result
  5. Know The Course of For Shopping for New Development
  6. Sources

Execs Of New Development

Pros Of New Construction

One of many advantages of constructing a brand new house is that every thing is model new and in pristine situation, with trendy supplies, home equipment, and fixtures. This implies you might be much less more likely to face shock repairs and upkeep prices, saving you cash in the long term.

Another benefits of latest building embrace:

  • Customization: The liberty to customise the house to suit your tastes and life-style. Relying on the kind of new house you select, you might be carefully concerned within the design course of or choose from a variety of pre-designed choices. By customizing your new house, you may remove the added value of renovating a resale property to suit your preferences.

  • Well being and security: New houses are constructed to right this moment’s requirements, guaranteeing well being and security for the occupants. Builders are required to comply with the Houston Development Code and different rules that set the minimal requirements for building. Which means you might be much less more likely to face a house inspector requiring the property to be introduced as much as code, and also you keep away from the opportunity of shopping for a resale property with unpermitted work or unauthorized renovations.

  • Vitality effectivity: New houses can profit from improvements in vitality effectivity, akin to higher insulation and air sealing, heating and cooling methods, and trendy home equipment, which might help cut back your carbon footprint.

Most builders provide warranties to assist get any building points mounted after shifting into your new house. There are two essential sorts of builder warranties: implied warranties, which cowl potential defects in workmanship that influence a home’s habitability, livability, and security, and specific warranties, which set out detailed phrases on the tasks of the builder, the period of the guarantee, and a mechanism for disputing points.

Cons of New Development

1. New houses usually include the next price ticket.

On common, new houses value 5-10% greater than present houses. In keeping with current HAR MLS knowledge, the common gross sales worth for a brand new house is 9% increased than an present, comparable property.

2. It is necessary to do your due diligence on the builders.

To make sure you’re working with a good builder, it is a good suggestion to ask your actual property agent to examine the agency’s historical past, together with any lawsuits or prior tasks.

3. The move-in date shouldn’t be all the time assured.

Delays are frequent within the constructing course of, with about 60% of closings being delayed. These delays might be brought on by quite a lot of components, together with materials shortages, inclement climate, labor or crew points, and allowing delays. In a current survey, 85% of latest house patrons reported experiencing a delay within the constructing course of, with half saying their houses took three months or longer to finish than anticipated, and 35% experiencing delays of greater than six months.”

Keep away from Status-Challenged Builders

Avoid Reputation-Challenged Builders

Contact us for unbiased builder suggestions. We are going to inform you which of them we belief and people that we are going to significantly urge you to keep away from.

We analyzed over 500,000 Houston house gross sales and located that one of many worst impacts on resale traits was houses constructed by reputation-challenged builders.

We outlined “reputation-challenged builders” as these with:

  1. Three or extra counts of litigation;
  2. Chapter; or
  3. A featured drawback story within the Houston Enterprise Journal or Houston Chronicle.

Our analysis confirmed that houses constructed by these builders bought for the best common low cost (5.6% off) to the record worth.

The worth of those properties additionally depreciated by 5.3% over ten years.

To take advantage of out of your actual property funding, listed here are our High Houston House Shopping for Suggestions and what to keep away from in navigating the resale market.

Construct Your Crew To Assist You Get The Greatest End result

Build Your Team To Help You Get The Best Outcome

Assembling a staff of execs, together with an actual property agent, lenders, and residential inspectors, might help you get the most effective final result when constructing a brand new house. This is what to search for:

1. An actual property agent with expertise in new building.

The method of shopping for a new-built house is completely different from shopping for an present property, with a distinct buy contract and distinctive negotiation challenges.

For instance, builders might embrace an “escalation clause” that binds you to pay for any will increase in materials prices, or an “unspecified completion date” that does not offer you a transparent timeline. They could additionally set costs and ground plans prematurely, making negotiations troublesome. An skilled agent might help you navigate these challenges and safe the most effective deal on your house.

2. Lenders who’re acquainted with new building.

These lenders provide loans particularly designed for brand spanking new building, protecting the price of supplies, labor, and different bills. They will additionally show you how to make the most of present mortgage charges. Select a lender with a superb repute, aggressive charges, and glorious customer support.

3. Inspectors who’re acquainted with new building.

An inspector might help you establish whether or not a home is appropriate for habitation and establish any defects that may influence its worth. An inspector with experience in new building may give you an correct evaluation of the property and whether or not it is best to transfer ahead with the acquisition.

Know The Course of For Shopping for New Development

The method of shopping for a brand new building house might be complicated, with a number of steps to comply with. This is an summary of what you may anticipate:

1. Decide the kind of new building house you need.

There are a number of choices to select from, together with spec houses (already accomplished), tract houses (in a brand new subdivision), and customized houses (constructed on an empty lot you personal). Think about which options are most necessary to you and what sort of house will finest meet your wants.

2. Discover a actual property agent with expertise in new building.

An skilled agent will know what to search for throughout contract negotiations and might help you make knowledgeable choices.

3. Analysis neighborhoods.

Think about components like property taxes, faculty districts, commute time, leisure areas, leisure choices, and business spots to discover a neighborhood that matches your life-style.

4. Work with a lender acquainted with new building.

If you happen to’re financing your new house, you will want a building mortgage. It is best to work with a lender who understands the brand new building course of.

5. Analysis potential builders.

Your agent might help you establish which questions or issues to deal with earlier than selecting a builder.

6. Analysis the builder’s developments.

You may both purchase a plot of land in an space you want and discover a respected builder to construct on it, or select a good builder with designs you want and purchase a plot in considered one of their developments. Make sure to contemplate the influence of a home-owner’s affiliation (HOA) and any dues in your price range.

7. Perceive the acquisition settlement.

With ongoing supplies and labor shortages, it is necessary to work together with your agent to grasp the phrases of the acquisition settlement and be ready for potential points like worth will increase and unavailable supplies.

8. Select your property fashion.

Seek the advice of together with your agent and builder to find out the ground plan and core parts of your property. Reap the benefits of mannequin house walkthroughs and ask for clarification on any supplies or fixtures you are taken with.

9. Select commonplace objects.

You will have the chance to pick commonplace choices for ending touches like paint shade, flooring, counter tops, cabinetry, lighting fixtures, home equipment, and tiling. Remember the fact that commonplace choices are often the most affordable.

10. Select upgrades.

If you happen to’re not glad with the usual choices, you may select upgrades at an extra value. Your agent might help you determine if an improve is definitely worth the funding.

11. Determine your residing scenario between houses.

It is necessary to plan forward for the place you will dwell whereas your new house is being constructed. If you happen to do not record your present house on the market till shortly earlier than your new one is prepared, there is a threat that it will not promote and you will be left with two mortgages. Your agent might help advise you on when to record your outdated house on the market to reduce the ready interval earlier than discovering a purchaser.

12. Have your new house inspected.

It is a good suggestion to rent an expert house inspector to look at the outside, inside, construction, roofing, and insulation of your new house. Ask your agent for suggestions for inspectors with expertise in your space. When you have particular issues in regards to the situation of the home, you may ask for particular inspections to be performed.

13. Signal and evaluation the guarantee paperwork.

There are two essential sorts of builder warranties: implied warranties, which cowl potential defects in workmanship that influence a home’s habitability, livability, and security, and specific warranties, which set out detailed phrases on the tasks of the builder, the period of the guarantee, and a mechanism for disputing points. It is necessary to grasp which kind of guarantee you should have and your agent might help reply any questions you’ll have.

14. Last walkthrough.

By this level, all inspections, repairs, and re-inspections needs to be absolutely accomplished. Throughout the ultimate walkthrough, make it possible for there are not any residual paint, left-behind building supplies, or every other indicators of unfinished work.

15. Closing.

Closing is a crucial step within the home-buying course of to make sure that all circumstances have been met,


With all of the out there data on the market about Houston’s high areas, it may be complicated when lastly making a call on which neighborhood to decide on. We offer complete and substantial Houston house guides and Houston actual property market information to maintain you knowledgeable and up-to-date. Get recommendation from the most effective Houston Realtors and take away the guesswork when searching for the most effective houses in Houston to dwell in.

  • HAR’s November 9, 2022 press launch
  • NAR’s November 18, 2022 press launch
  • REALTORĀ® Journal’s April 25, 2022 survey article: Regrets Patrons Have With New Development
  • All Houston property sale data was sourced by the HAR MLS database.
  • Census Bureau’s Survey of Development
  • Census Bureau’s September 2022 Month-to-month New Residential Gross sales report
  • Information is deemed correct, however shouldn’t be assured. Info is supplied for informational functions solely.

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