If you have been in the market for a new home, you are probably finding that a large percentage of homes available are listed as "Pre-Sales". A pre-sale may be a home that hasn't even had a building permit issued, or it may already be in construction. While home pre-sales are very common in the real estate industry, it is critical that you have an understanding of the process that the builder goes thru, the time line to complete the home, and the considerations that must be taken about your appraisal, closing and possession.
Prior to building any home, the builder must demonstrate to the permitting jurisdiction that the lot will support the home. There must be water, sewage (or an approved septic plan), and no restrictions for ecology or zoning reasons. Most residential builders have completed this process prior to putting the pre-sale on the market. If you are not on a city lot, or are in some other unique situation, the process will take a minimum of 30 days, and can take up to a year.
Assuming that the builder has a buildable lot, the next piece is the building plans themselves. Again, many volume builders have "pre-approved" plans, which can be permitted over the counter. However, if you are building a custom home, or making major modifications to a builders plans, the permits can take days to weeks.
The building process takes 75 to 150 days for most standard homes. Visit the Lewis-McChord Real Estate Guide to read more..
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