New homes are popping up everywhere, and housing prices in Clarksville, TN continue to climb. Homes are selling twice as fast as in the past – What is causing this surge in demand? Favorable interest rates, strength of the military, the emergence of larger industry and an influx of commuters from Nashville in search of affordable housing.
According to regional trends, Austin, Texas Charleston, South Carolina and nearby Nashville are on track for growth at increases that are much higher than local historical averages. In fact, the dramatic growth in Nashville has spilled over and caused the boost in demand for Clarksville homes.
If you are interested in buying new construction in Clarksville, TN there are some things to keep in mind. Remember you are buying from the builder, not from a previous owner. When considering a new home build, here are something important considerations:
When you look for a real estate agent in Clarksville, TN make sure you find someone with experience in new construction. You also want to find an agent who is not affiliated with the builder. Although model homes typically have an agent on site, they have a direct relationship with the builder. Be sure to choose an agent who will represent your best interests. Your agent should advise you on the best way to structure an offer and help you make choices that will positively affect the home’s resale value.
Your agent may be able to register you in advance, ether by phone or online. This allows you to visit the model at your convenience. You can also arrange to visit the community with your agent.
Builders don’t like to drop their prices. If a builder starts negotiating on price, they realize that future buyers may have the same expectations. Asking a builder to cover closing costs or provide upgrades are the best ways to get the most for your investment.
Be sure to ask your agent to research the builder’s negotiating style prior to meeting. Your agent can look at prior sales in the same community and at other developments. This will help determine if there is a more effective way to approach an offer with a builder.
Although buying a new home can be an exciting undertaking, do not sign anything until negotiations have been finalized and included in the contract. Be sure to spell out exactly how the home will be completed and add clauses for things like what will occur if construction is not fulfilled on time. Include deadlines for all decisions that take place throughout the building process. While verbal conversations are important, they are not binding. Make sure everything is in writing and signed by all applicable parties.
Ask your agent to obtain a copy of the builder’s documents in advance. This gives you time for review since builders usually use customized purchase agreements instead of standard forms.
We have all seen models walking the runway with perfect hair and makeup. This is a representation of an ideal. A model home is no different; it is a representation of what could be if you chose to buy the ideal home. As you tour a model home you will see a mix of standard fixtures and materials along with a handful of tastefully appointed upgrades. Be sure to find out what is standard and what is extra. Find out what materials are available and what they will cost. Depending upon the time it takes to build your new home, costs can change. The price quoted at the initial tour may not be the same when you ultimately decide to buy.
Your agent should be able to obtain a list of standard features and, if available, a list of common upgrades and their applicable costs.
Search online for reviews and news pertinent to the builder. Visit some of their other developments and speak with those homeowners. Home builders will always have happy and unhappy buyers but be aware of trends. Cover any potential concerns with the builder in advance and include those in the purchase agreement.
If you are working with an agent who is experienced in new home builds in the area, they should be able to shed light on a specific builder.
When purchasing a new home in Clarksville, TN make sure you have guarantees if the home is not ready on time. Your purchase agreement should list a completion date. Many builders add in provisions that make the completion date dependent upon things like availability of supplies or permit approvals. And if your lender is not ready to close on time there can be added charges.
Make sure you agent clarifies for you what happens in the event of a delay on either side
Just because the home is new doesn’t mean that it will be without problems. Hire an inspector to ensure that everything is up to code and safe. An independent inspection with a well-qualified inspector is a wise investment. Most municipalities require new homes to pass basic permit inspections, yet most builders will allow for an independent inspection and will agree to repair code compliance issues. Many builders, however, omit a provision allowing a buyer to walk away and keep the deposit if they are not happy with post inspection results.
Your agent can investigate the inspection process and explain your rights outlined in the agreement pertaining to repair requests or termination of the agreement.
Most new homes come with a warranty but not all warranties are the same. It is the buyer’s responsibility to be educated. Know about what is covered, what isn’t covered and the terms of coverage. Third party warranty companies are common, and manufacturers often carry their own separate warranty (for things like windows, for instance). In those cases, your builder may defer to the manufacturer instead of handling any issues directly. Your builder should be able to outline which policy covers which part of the home.
Obtain warranty information early-on in the home buying process so that your offer documents can address any potential concerns up front.
Investigate the surrounding area and see what the city has planned. Will your jaw dropping view be gone in five years? Builders will expect you to do your due diligence and be aware of any future changes pertaining to traffic planning and neighborhood development.
Your agent should be able to write a review period into the contract, so you can investigate the area and do some research prior to submitting your offer.
While builders will have a specific lender they are working with you do not have to use their lender. It is wise to shop around and find a loan that works best for you. There will be some builders that require pre-approval with their preferred lender. Even though you may have spoken to a lender of your choice prior to making an offer, the builder may still ask for pre-approval. This reassures the builder that you are a qualified buyer. And often-times, this turns out to be the most cost-effective option. These lenders are often willing to offer more competitive rates.
Sometimes with early stage projects, preferred lenders may be the only option. This can happen when the other lenders have not yet entered a particular-development, so it can be difficult to obtain a loan from another lender.
Your agent should be able to find out if there are special promotions, offers or specific contractual differences if you use a preferred lender.
Whether you are planning for your dream home or a simple starter, buying new home construction can be overwhelming. Weather conditions, availability of supplies and square footage can all contribute to the time line. On average, you should expect a new home build to take anywhere from three months to in-excess of a year. It is important to have a good agent on your side to help maneuver the steps along the way especially if you experience any hiccups with the overall planning process.
Chief Knows Ft Campbell can help you understand the steps involved in buying new home construction in Clarksville, TN. From shopping for the dream lot, assessing the build timeline, home automation suggestions, right up to your move in day; we are here for you through every step of your home buying journey. Give us a call so we can help you find the perfect new home in Clarksville, TN.