Finding Home Builders Who Are Right for You
Home building is the act of building a home, usually called a ‘house’ when given attention to those who may someday or now live in that home. This act of building a home is a huge investment on behalf of the home owner who hopes that it will yield profit. The selling price of a home largely depends on how much home construction went into it. Usually, an average home costs $70K or more. However, some homes can go up to several million dollars or more.
The home building industry has been enjoying rapid growth over the past two decades. The reasons for this growth are varied and complex. One such reason is that the residential construction industry is tied to the economic cycles. When the economy is good, home builders experience brisk business. And when the economy is bad, it generally results in less business.
Residential construction has experienced a boom and bust depending on the state of the economy. A good example of a home building industry boom can be seen during the early to mid 1990s. This was a time when the Federal Housing Administration (FHA) was providing housing loans at affordable interest rates to first time home buyers and renters. With FHA loans, home builders were able to provide a variety of housing options to suit varying needs and budget requirements. The FHA insured loans helped home owners secure the financing they needed to purchase new homes, which drove up demand for new homes.
But along came the sub-prime mortgage crisis and the decline in the American economy. Home builders were left with a huge number of homes that did not meet loan requirements or that could not be sold because of issues with the home. In addition, interest rates were cut by the Federal Reserve Bank of America (FRB) resulting in fewer loans being approved. These factors combined to create a buyers’ market in which home builders were forced to lower their prices and sell out. Many of these homes were left on the market for months until owners could get in under budget and decided to sell.
But the good news is that this doesn’t mean you should avoid purchasing a new home. There are plenty of great home builders that are available right now with a variety of designs to suite your needs and budget. New home builders that have experience working with both new and old homes are the best choice because they can accommodate your needs as your build your dream home. There are many advantages of having a home builder that is familiar with both types of homes, such as:
– Handymen and experienced construction companies are your most reliable friends in the home building process. They will make sure that the construction process goes smoothly and you end up with a quality home. A good home builder will ensure that all construction codes are met in the process of building your home as well as have a complete set of building plans with them from start to finish so that you can fully understand everything that is involved in your new home.
– It’s best to find a home builders that is licensed in your state or near one. This is because the construction process will be easier to complete if everything is uniform. If there are problems with different laws or regulations in your area that may affect the building process, a home builder that is licensed is able to help you with this as well as offer financial assistance if needed. You may not qualify for housing finance through your own bank, but if you use a licensed builder you will know that you have a better chance at getting approved.
– Don’t forget about the cost. While you can probably save money by building your dream home yourself, there are still costs that need to be budgeted into the budget. For example, labor rates can vary depending on the type of construction that is being done. Most home builders have labor rates that are comparable to other building projects in your area. When comparing costs it’s important to look at more than just the cost of materials and labor.