To Buy New or Build New… In Darien, CT?
Posted by 
Leslie Florio on Tuesday, February 23, 2010
that is the question…
Whether contemplating the purchase of a completed new construction home in Darien or hiring a builder to build your “dream home”, the decision on what to do and how to do it can be overwhelming to say the least. Often times, people think that building a custom home may be out of their reach. That said getting professionals involved early in the process will save you time and, hopefully, dollars.
Purchasing a Spec Home:
There are many builders in Darien – several local – that regularly build “spec” (speculative) homes. You tend to see the same builders’ names resurface. That is good for many reasons. First off, they tend to have a long list of references, some of whom will allow their homes to be shown to perspective clients. In addition, there is a sense of comfort knowing that your builder not only works in town but lives there too – making him/her more accessible even after you’ve moved in. Regardless of what phase of development a “new construction” is in, you can easily pursue and get your questions answered. An agent that is well versed in new construction should know whether the project is custom or spec. Once it’s been determined that the home is a spec home, the agent can assist with setting up a meeting with the builder(s). The advantages here are 1) the ability to customize and 2) to eliminate the competition before there is additional interest on the house – which may lead to a better price for you! There isn’t any downside to investigating a spec home early on in the process – if it is not a fit you simply walk away. On the other hand, you must be prepared to put your 10% deposit in the attorneys escrow account BEFORE you pick out your tile or backsplash. Often, the builder will request that the deposit be “released” from the escrow account prior to closing.
Purchasing a tear down:
If the house is truly a “tear down”, chances are you may come into competition with builders who are trying to purchase the property as well. If there are multiple offers, the negotiation may go to “sealed bids” or “highest and best.” In this case your best bet is to come to the negotiating table prepared. That means that in addition to your offer (in writing – frequently referred to as an Offer of Terms); you should have a written pre-approval from a qualified and credible mortgage representative, and a personal check for 1% of your offer price.
Purchasing a Lot & Hiring the Builder:
There are typically lots on the market for purchase.
Obvious Considerations: Location and topography. If the house has challenging topography, inflated excavation costs may come into play. This is equally as involved as purchasing a tear down but in the end, you hopefully move into your “dream house.”
Please stay tuned for my next segment “SO YOU THINK YOU SHOULD BUILD.”
