Find a well established builder, if you are new home buyer.

How to find a well established builder?

Research the Builders who build there

Tips to find a well-established builder:

  • Find the local Builders Association for a list of Builders that are registered members. You can access this through organizations like the Canadian Home Builders Association. It is important to note that there may be other Builders out there as well that just have not chosen to be members of a local builders association. They may well be great, but generally, those who pay a fee to be a member have not only gone through a due diligence process to be a member but also take the business seriously and are well established.
  • If you do find a Builder who is NOT on the local Builder association (and perhaps even if they are) you want to check to see if they have a valid business license and if they have been recognized by the Better Business Beaureu or other local organizations.
  • Your local city hall may also have a list of the number of permits that Builder has pulled for construction in the past year, giving you an idea of the strength of the Builder and may even be able to share their knowledge and experience with that Builder. Both small and large Builders have been known to go out of business and it’s important to check this out carefully, especially as later you will be giving them deposits. (example: REID Built – Bankruptcy)
  • Check local rating sites such as Avid Ratings and HomeStars who utilize consumer ratings of the Builders. It is also best to look at more than one as it is possible a rating site is paid to ensure that Builder looks better than they really are so verifying various resources will give you the clearest picture.
  • The Developer will typically choose those Builders they are working within that Development and there is a myriad of reasons they have made that decision. The developer is selling the lots to the Builder, but remember they need to assist them in selling as well as the Builder needs to pay them for the land and that doesn’t always get paid at the beginning. Often the completion of that payment comes out of your purchase when you move in so you are helping to pay for the development of that community.
  • Finally, talk to friends and family or utilize your Facebook and LinkedIn accounts to reach out to find out who has built with particular builders and the quality of experience they had.

Buying a brand new home from builder? Steps to find new home

brand new home
Find brand new home

Looking to buy a brand new home for the first time?

We want to offer you some key suggestions on purchasing a brand new home, you can use to ensure you make the most of your own research on buying. Learn how to utilize some Real Estate professionals as well as find how to use the Builder Sales representative all to your benefit, so that in the end YOU have all the knowledge and information necessary to protect yourself in making a great decision on a YOUR new home.

Step 1: Start Your Research Early

Buying a new home is far more detailed than buying a new TV or new car. It will likely be the most important decision AND investments you ever make for your family. Many of our parents will readily admit they “wish they had known” ………..now is the time to seek and find the best home and investment opportunity for you and your family.

Start researching as early as possible. Many of us assume that there is only a limited number of Builders in the city you come from. We make this assumption because those are the Builders that do the majority of the mass marketing and so it’s not hard to see why you come to this conclusion. Reality is that there will undoubtedly be FAR more Builders than you even though…in fact, your favorite real estate agent most likely isn’t aware of many more than you are. Often the ones they take you to are the few they have experience or a relationship with.

For example in Saskatoon, Saskatchewan, Canada, the population in 2016 according to Census Canada is only 295,095 and yet there are 120+ Builders in the city, some of which only building 1-2 homes a year, but others building 100’s.

Step 2: Figure out where you want to live

Determining the best place to live based on your employment, a significant others employment, secondary and post-secondary education needs, as well as recreation requirements for the family all, play a large part. Some key factors to look at are:

  • what new communities are being developed now, or are soon to be opening in your area and what they have to offer. Many developments are years in the making so with a little research you can see what might be coming soon and be at the lead of understanding who is building there and get in early.
  • What amenities is the development going to offer, including important ones like schools? If your children are newborn or only a year or two it might be perfect as that new school may be scheduled to open just as your child reaches the age of requiring one and be first on the list because they live in the area. New school, new teachers, a new approach to education can also be an exciting advantage. Others that have older kids may find new private school options or public transportation routes that will make it easier for them to attend post-secondary and still live at home, saving you money.
  • Look at the transportation routes planned, will a route that now exists be changed or a large freeway interchange built that changes what part of the development you want to be in. Some City roads have been planned for 20 years or more, little research you will find out if you want to live close to a brand-new interchange planned two years from now or not.
  • Shopping, what is planned? Is there daycare? Seniors facilities and services? Even items like police stations and fire halls can be important to what the rating will be for insurance and your overall insurance costs in that community once you move in.

 

New Home or Used Home – is there really a question here?

 

welcome to new home

New Home Buyers are not interested in used homes……they are looking for a brand New Home for so many reasons.

The most important thing to recognize is the desire to buy a Brand-new home is in fact growing amongst consumers with more than 53% indicating their next home will be a new one. More millennials are looking to find the newest in innovation and best location to settle into, one that matches the type of lifestyle they want to be living.  Baby Boomers are also leaning more toward a new home as well as they are tired of the many years of maintaining their used home.  They have spent countless hours and thousands of dollars keeping their home as a solid investment so that they can now sell and move into something new, maintenance free and offers the many luxuries an early retirement lifestyle deserves.

New Home Buyers want new items, the newest in appliances, smart homes, energy efficiency, new home warranty, maintenance free building and more. They are not interested, and simply don’t have the time or willingness inherit someone else’s worn carpeting, used  kitchen appliances or look at some other family’s initials scrawled into cement they didn’t put there. They want their Houzz and Pinterest Dream of a new home, one that is clean, well designed, effective, innovative with a great location to amazing amenities.

Do You have to Use a Real Estate Agent? Nope…

Unfortunately, most buyers can’t easily look up only new homes on REALTOR.ca (MLS). The average consumer CAN NOT look up the house by age of home, your stuck looking through all the used homes to find them. This is because the REALTOR.ca system is specifically designed to ensure you only get limited information encouraging you to call a real estate agent.

Thankfully other online services are appearing to help many New Home Buyers in becoming extremely well versed in new homes, the projects, the builder and more.  Many start their online research as much as 5 months before they ever talk to a Builder or an agent. They use so many online services including the Canadian Home Builders Association, the Builders own website, or sites that bring all the new homes into one place like NewHomeListingService.com.

Buy Direct from a Builder or Use an Agent?

By the time many New Home Buyers decide they are ready to buy their brand-new home, they often already know more than the local real estate agent.  So, one of the first questions you may have is should you even use a Real Estate Agent?  “What value does the Real Estate agent bring and I heard the Builder will keep the price higher to pay their commission?”   Yet you have also heard from your friends and others the horror stories in buying a new home direct from a Builder and not getting what was promised and the many headaches that follow.

Take a look at the next series of Blog posts for the Steps of what to do next!

New Homes, Millennials just love them more!

New Homes fit the Millennial generation better as they don’t want what their parents had, they want a brand new homes that fit their fast paced lifestyle.

I don’t know how to renovate?

Gone are the days of the average home buyer who is looking for a home that “needs a little work”. There are very few of those below the age of 30 that were raised by their parents with the skills and knowledge to renovate a home. In fact, few possess the skills to operate a power saw or a drill…and it’s not their fault.  Most of their parents were raised in a generation where being handy at home was not for them; they had their careers to work on, friends and then the internet had come along.

The handy home repair requirements were taken care of by their parents (millennial grand parents) so the kids didn’t have to.  Well, launch forward 20 years and the children (our millennial) didn’t grow up with any role models to have learned anything about how to utilize some of the common power tools, much less take on the task of renovating a home.  Unfortunately, it’s not something that SIRI can answer for you either.

So what does this mean to New Home Builders and Renovation companies out there?  Well it means they have a whole lot more business coming their way, and its only going to grow.

Aren’t New Homes Better?

“Buying a new home directly from the builder, whether a condo, townhouse or detached, is a popular choice. Almost one-third of all homes sold in Canada each year are brand new. In Ontario alone, more than 52,500 buyers opted for a new build last year, and a forecast by the Canada Mortgage and Housing Corporation (CMHC) predicts that number will only climb.”  Romna King, Money Sense  (http://www.moneysense.ca/spend/real-estate/the-top-10-mistakes-new-home-buyers-make/)

millennial are looking for a turn-key home where they can just move in, that is close to the many amenities of their community, close to friends and public transportation and that is selfcontained – not requiring much in the way of maintenance – or carries a monthly fee that takes care of those many needs. They also want a new home that offers the most advanced technologies available that suit their lifestyle, allow for continued and uninterrupted enjoyment of social media and other online experiences and, with a large component of people working from home, the ability to have speed, access and office space related to day-to-day business is key.

The biggest difference in today’s home buyer however is NOT that they don’t have the handyman skills their grandparents possessed, but the seemingly innate ability to know how to research and find out so much information about a home. The days of relying on a REALTOR® or the show home staff member are not what they used to be.

Buyers today know the marketplace, they know the inventory by checking out sites like NewHomeListingService where they can find all of the Builders and their product in one place, and do a great deal of research before they ever talk to a Builder, show home person, or an agent.  These sites operate like the Trivago and Hotels.com of the world that amalgamate all of the hotels in one place allowing you to choose what hotel works best for your needs.  NewHomeListingService does the same thing for the new home building industry.  Today’s buyers of new homes are aware of the average costs of home and readily compare amenities and features of various homes and conduct a ton of research long before making that decision.  So what can Builders and REALTORS® do to prepare for this?

Do Builders Really Get What We Want?

Builders, first of all have to market where these buyers are looking and that is totally online.  Now many Builders have a website which is great, but here is the problem for the consumer: If you plan on buying a new home and rely on the websites, you now have a great deal of research to do. There are literally hundreds of Builders in each community offering a variety of inventory, some available soon, some not available until after an 8-10 month build time.  Each one features their upgrades differently and some will publish their prices while others will not.  Consumers who have online experiences like booking a hotel, are looking for that same experience. They don’t want to be creating spreadsheets to cross compare features, pricing, amenities. They want it all in one place so they can quickly make a very educated decision.

Why? They just Don’t Have Time.

Their lives are filled with social interaction both online and off, and life today is as busy as ever.  Consumers of old never experienced a faster experience, so never demanded it.  Years ago, Real Estate Agents used to have a printed book of listings and consumers relied on them to know what was for sale and to take them. Years after sites like REALTOR.ca existed, people would be inconvenienced if they were told they had to do their own research or rely on others to get them information.

REALTORS® also must be able to quickly find information as there are many new buyers who simply don’t have the time to spend online looking and rely on a professional to do the research for them. But that doesn’t mean they will accept a few properties to look at. They expect agent to show them ALL of the possibilities. That means a lot of research for agents and a lot of time lost, all while their own client may just walk into a show home and buy without them.

Knowing about sources like NewHomeListingService,  and others, can accelerate that research and make it so much easier and faster to help buyers find brand new homes. Because they don’t want a “fixer upper”, and grandpa sure isn’t going to be able to help them out too much…well maybe a little, but guessing with the vision being not what it used to be things may not be as straight as they’d hoped.

New home buyers are where the future is at.  They are either buying a brand-new home, which is great for Builders if they can bring the many features to a home that new buyers want, or fantastic for the business of renovation companies. Either way, the new young buyers are a force that need to be considered and knowing where to advertise new homes or where to help your young clients find new homes will be crucial to your future success.

Milo Anderson
CEO/Founder
NewHomeListingService