Have the right expectations when building a house - 2022

By
Real Estate Agent with Keller Williams Preferred Realty

What to expect when building a house in 2022 and beyond?

The pandemic has brought unexpected challenges when it comes to building a house. Not only have costs on many materials gone up but labor cost has increased as well. Labor shortages have caused delays. Some of the labor shortages are because of people being out due to the pandemic and people leaving their jobs.

In addition to that, there are many people making delayed home purchases, investment purchases, and 2nd home purchases. We've experienced a housing shortage that really hasn't ended although interest rates have gone up.

Building a home is the right choice for some people. Planning and having proper expectations will make the process go smoother.

  • Completion date: Have a plan if the builder isn't able to complete your house in time. This is more common than ever. Don't be upset as it won't change anything and will just frustrate you more. If you're renting, make sure you can extend your lease if necessary. Builders don't cover that costs by the way.
  • Time to build: Keep in mind some builders are quoting a year or more for a home to be built. 
  • Materials: Be prepared for material substitutions. For example, cabinet makers cannot keep up with current demand. You could experience a delay or a substitution. Don't get your heart broken if that happens to you.
  • Timelines: When timelines are set, don't be upset if they get moved. It is happening to many homebuyers who are building.
  • Other delays: Weather can also cause delays. In North Carolina, a bad storm or a lot of rain can cause a delay during warmer months. Snow or ice storms can cause delays during cold months. Permitting can cause delays as well.
  • Interest rates: You're going to want to lock in your interest rate at some point. When you get pre approved, make sure you can qualify if the interest rate increase a couple points. Make sure the builder has told you that closing before your lock expires is possible. 
  • Appraisal Shortages: An appraisal gap isn't unusual these days. For many people building values will increase by the time you get to closing. However, that is not a guarantee. If there is an appraisal gap, most builders will expect you to cover the difference.
  • Variable pricing: Some builders may increase the price during the build process. Prices for builders are increasing on a regular basis. Know what is in your contract.
  • Micro managing: If you visit the house on a regular basis, you'll find things that need to be fixed. Outside of wrong materials or items that cannot be changed easily (walls in wrong place, etc), it is best you don't micro manage the builder. They will touch up paint, repair dents and scratches, replace broken windows, etc. prior to closing.
  • Communication: Have the best communication you can with your Realtor and your builder. Open, clear, concise, and kind communication is best.
  • Relax and enjoy: Building isn't easy even during a buyer's market. It can be even more frustrating in this market. Take a deep breath and relax as much as you can.  It might be a bit of a bumpy ride. 

Celebrate! Once you move into your new home, celebrate and enjoy it!

Posted by

Raleigh Cary Apex Realtor Carla Freund Realty

Presented by:

Carla Freund of Ask Realtor Carla

Carla Freund Realty Team

Keller Williams Preferred Realty

By Carla Freund Realty Team

Original Home of "Market In A Minute" Real Estate Report for Raleigh Cary CH & Durham Triangle

Carolina Life Real Estate and Relocation

 

Find Carla Freund Realty Team online:

   Ask Realtor Carla on Facebook    Ask Realtor Carla your Raleigh Cary Realtor on You Tube  Ask Realtor Carla your Raleigh Cary Realtor on Instagram  Ask Realtor Carla your Raleigh Cary Realtor on Twitter  

 

Created by Quinky - Freepik.com

Powered by RealBird.com

Contact Carla Freund, Broker, Keller Williams Preferred Realty,  Licensed Realtor® in North Carolina at 919-602-8489 to list your property for sale or to purchase a property in Cary, Raleigh, Morrisville, Apex, Fuquay-Varina, Garner, Holly Springs, Pittsboro, Durham, Chapel Hill, Johnston County, and the surrounding areas.

Now accepting referrals.**Not meant as a solicitation to individuals already working with a Professional Real Estate Agent.**

Disclaimer: The information provided herein is supplied by several sources and is subject to change without notice. The Raleigh - Cary Home Reviews Blog, Keller Williams and Carla Freund does not guarantee or is any way responsible for its accuracy, and provides said information without warranties of any kind, either expressed or implied. Entries on Raleigh - Cary Home Reviews represent the opinions and ideas of the author(s). Raleigh - Cary Home Reviews Blog does not express the views of Keller Williams, or those of the broker.

 

Ask Realtor Carla your Raleigh Cary Apex Realtor

Keller Williams Preferred Realty - Raleigh NC

 

 

Comments (6)

Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Great information. Thanks for sharing and have a wonderful day! bill

Jun 27, 2022 09:28 AM
Carla Freund

You as well Bill!

Jun 28, 2022 07:03 AM
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

We are having a home built and the builder seems to be ahead of schedule, and has communicated will about the process. Interest rates rose on us pretty steeply, but we seem to be on track.

Jun 27, 2022 09:35 AM
Carla Freund

That's great Nick. I don't hear too many builders say they're ahead of schedule.

Jun 28, 2022 07:02 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I can't believe it has been since 1998, when we built our last house. Your post holds true for as long as I can remember Carla Freund 

Jun 27, 2022 01:00 PM
Carla Freund

Same here Paul. We're in the same house we built in 1998. We've remodeled some over the years. It has been a great house.

Jun 28, 2022 07:02 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Carla... I do a lot of new construction and can relate to all of your tips... most of which I've discussed with clients at some point during the building process.

Jun 28, 2022 06:47 AM
Carla Freund

We're in crazy times when it comes to building a house. 

Jun 28, 2022 07:02 AM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I don't do many new builds--it's a special skill set I think.  And buyers think they will be getting everything they want in a new home but that's not often the case. It's a long process, buyers end up spending more than planned and with inflation, gas prices and supply line issues, some builders are not even firming up the price of the home till close to completion

Jun 28, 2022 07:20 AM
Carla Freund

So true Mary. Some builders are also waiting until a home is almost complete before listing it to sell. They don't want to bring money to the table. You're right, buyers think they're going to get everything they want until the prices start adding up. Most people have to compromise.

Jun 29, 2022 05:23 AM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Hi Carla- all of these are true with building a home. My husband is a retired builder for large companies and your point about micro-managing hits home. He used to have issues with buyers who would show up every day and want to walk the property, even going to the second level. For many reasons, this was never a good idea. 

Jun 30, 2022 03:26 PM
Carla Freund

Yes, and as their agent, I find it to be stressful for most buyers in the long run. 

Jul 01, 2022 06:47 AM