NAIHBR New Construction Homebuyer Services – A Great Place to Start

NAIHBR New Construction Homebuyer Services – A Great Place to Start

As NAIHBR members, you know about the great marketing services that NAIHBR can provide you and your sellers, but did you know NAIHBR can help you with your BUYER clients as well? Lately, many of our Realtor members have been sending their new home buying clients to us first, before starting the process of finding a lot or a builder. Here are some of the reasons why so many of our members are registering their clients with NAIHBR:

1. NAIHBR agents have access to exclusive properties not found on the MLS. Provide your clients the best selection of properties and bring value other agents cannot.

2. Your clients deserve a choice! NAIHBR will provide them several builders to select from, providing them real options for their new home build. They can choose the builder that is right for them and have a choice regarding everything from the style of the home to the price.

3. You work hard for your commissions, protect them. NAIHBR members who have their clients registered are ensured of receiving their real estate commissions, because NAIHBR builder members agree to work with the real estate community. No more wondering if a builder will try to bypass you or renegotiate your commissions.

4. Get paid now, not when the build is complete in 12 months! With NAIHBR’s special arrangement with the area’s best new construction lenders, all real estate commissions are paid up front, before the build even starts! It is new construction agency, done right.

5. New construction, and all of the variables and decisions associated with it, can be complicated. Having a NAIHBR expert that has been through the process many times before makes it much easier. Leverage NAIHBR’s extensive experience to help guide your clients through the process and make it go smoothly for both them, and yourself.

6. Additional buyer leads are nice, especially when they are looking for a new home and lot package. At NAIHBR, we are introduced to new construction homebuyers all the time. When they are looking for a quality agent, we go to the list of NAIHBR buyer agents who have registered their clients with us in the past. These are the agents committed with working with us, so we reward them with the home buyers that are brought to NAIHBR who are unrepresented.

NAIHBR is here it help you and your clients make the best of their new homebuilding experience. As NAIHBR Association members, we are here for you.

Register your new construction buyers today! It is easy. Just go to www.naihbr.org/register-new-construction-buyer-opportunity to register your buyers and take advantage of all the NAIHBR’s benefits today!

To Renovate or Demolish, That Is the Question

Whether you are contemplating renovating your current home versus buying a teardown or trying to decide what to do with a fixer-upper, the renovating vs demolishing question is rarely clear cut. The cost of one over the other varies from case to case. Here are a few factors that you should take into account to determine when to renovate and when to demolish.

When to Renovate

Preserving Vintage Details

If your home has historical attributes or original details that you want to keep, it may be wise to renovate. Vintage features like solid-core doors, arched doorways or marble windowsills are hard to come by today and often can’t be replaced by new construction.

Historic District Restrictions

If you live in a town or neighborhood that is designated as a historic district you may not be allowed to demolish and may be forced to renovate. Many older communities have restrictions in place to preserve historical buildings and protect the character of the town. In some places, you will need to get special permission from the local historic preservation commission to demolish and rebuild. Those can often take much longer to obtain than renovation permits and aren’t worth the trouble.

Considerable Cost Savings

If the scope of the renovation is limited enough that it is considerably more cost effective, renovating is probably your best option. Keep in mind that renovation costs are almost always higher than you anticipate due to unexpected issues like electrical or plumbing problems, mold or structural defects. You should leave some extra room in your budget for unforeseen expenses.

When to Demolish

Major Structural Issues

If the home has major structural issues it is almost always smarter to demolish the home and completely start over. Things like crumbling foundations, mold, pest infestations, or cracks in the walls are typically more expensive to repair. Water damage from a flooded basement or a leaking roof also is a major issue that is often not worth fixing.

Cost and Potential Appreciation

If the investment in new construction increases the value of the home enough to outweigh the demolition costs, then demolition is most likely your best bet. Demolition typically costs about $8,000 to $15,000 depending on the location and the size of the property. Generally, it is worth it to tear down the home if the new house can be valued two to three times as much as the original home. The price of the newly built home largely depends on the location and the current prices in that market. So it is important to know the sales prices for comparable homes in the neighborhood and set your budget within those parameters.

NAIHBR is a not-for-profit trade association brings together homebuilders, contractors, real estate professionals, lenders and suppliers to promote development of new construction and home renovations. Our members have a strong interest in building value in their local communities. For more information or to join NAIHBR contact us at 855-733-8100.

NAIHBR

Winter Leadership Summit Series Well Received

On January 25th, NAIHBR held its first of two Leadership Summits in the Chicagoland. The afternoon session included an overview of the housing market by Chairman Paul Imura, as well as an introduction to the NAIHBR program by Executive Director Jim Pesavento. NAIHBR’s newest Platinum Sponsor, Home123, was also on hand to introduce attendees to the latest technology that can simplify the request process and marketing of proposed new construction homes through the NAIHBR program. “Our proposed new construction program needed a technology piece that can speed delivery and provide a marketing tool to the real estate community regardless of MLS listing policies and an individual agents marketing strategy. Home123 brought that solution, and it has taken the NAIHBR program to the next level” stated Jim Pesavento. Other key presenters included Allan Weiss, who provided his unique insight into predictive home property valuations and addressed some surprising myths about the current CMA process currently used by most agents.

 

Feedback from the event was overwhelmingly positive, and comments from attendees can be found at: https://www.facebook.com/search/top/?q=naihbr. The next and final Winter Leadership Summit in Chicagoland will be Wednesday, February 7th from 1-4pm. The address is:

1515 W. 22nd St

Regency Towers

West Tower - 1st Floor Conference Room

Oak Brook, IL 60523

 

A few seats are still available for the event and registration is free. Simply go to https://www.eventbrite.com/e/get-a-jump-on-spring-market-naihbr-winter-re-leadership-summit-oak-brook-tickets-42204334300 and reserve your free seats. It will be a great investment of your time and will pay dividends throughout your 2018 selling season!

 

 

NAIHBR Events

8 Steps of the New Construction Process

Many home buyers hesitate to purchase a new construction home because they wouldn’t know where to start and the idea of the process seems daunting. It doesn’t need to be as painful as you think if you assemble the right team of lenders, real estate agents, builders, and contractors to support you along the way. Here is a quick overview of the new construction process and what you can expect:

1.Get Pre-Approved - The first step in any homebuying process is to find out how much you can afford based on what a lender will approve you to borrow. The builder you choose may have a preferred lender or their own lending operation but it is best to do your homework to find out how much you can borrow and what the interest rates are. Research lenders that specialize in construction or renovation loan programs. For more on types of construction loans see Renovation Loan Programs for Projects of Every Size.

2. Find a great Real Estate Agent - Before you meet with any builders, find a great real estate agent that will represent your interests. Builders sales agents are incentivized to sell quickly and may pressure you to sign a contract that does not serve you well. If you visit a builders site without an agent the commission could go entirely to the builder’s sales agent and the builder will refuse to pay your agent. By hiring your own agent, you will have someone negotiating on your behalf, answering your questions and seeing that you get the best deal possible.

3. Shop for a location - Your preferred location could dictate whether you buy in a new development in the suburbs or a vacant lot in the city. It is best to work with your real estate agent to decide what neighborhood or school district you want to live in and then start looking for lots within those boundaries.  

4. Choose your Builder & Finalize Options and Floor Plans - Once you and your agent determine your location, start meeting with builders in the area. Ask about what options and upgrades are available and how much they will cost. Do your research on the builder’s reputation and his previous projects. Once you have hired a builder, be sure you are completely satisfied with the floor plans before signing off on them. You usually can’t make any changes after construction has started and if you can they are expensive and cause delays.    

5. Consult with a Lawyer - Have a real estate lawyer review your purchase contract before you sign it. Make sure you understand what you are committing to and any contingencies or cancellation rights.    

6. Start building! - While your new home is under construction resist the urge to visit the property. Apart from the safety issues of an active construction zone, your presence slows down the workers and interrupt their workflow. If there is a legitimate reason to go to the site you should schedule an appointment with the foreman and bring your agent.

7. Get a Home Inspection - Even if the builder tells you it is not necessary, hire an independent home inspector to check the plumbing, electrical work, roofing and drainage. If he finds any issues the builder should make repairs within a certain period after closing. Make sure your purchase contract allows third party inspectors and guarantees necessary repairs.

8. Move In!

NAIHBR is a not-for-profit trade association brings together homebuilders, contractors, real estate professionals, lenders and suppliers to simplify the new construction or renovation process. Our members have a strong interest in building value in their local communities. For more information or to join NAIHBR contact us at 855-733-8100.

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NAIHBR National Association of Independent Home Owners and Remodelers

Contact Info

401 North Michigan Ave., Suite 1200, Chicago, IL 60611

(855) 733-8100
[email protected]

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