While real estate is a booming industry, finding your dream home today isn’t a walk in the park because there’s just a lot of considerations to make. One viable option to take is to buy off a plan, which entails signing a contract for a home purchase before it is even constructed. It’s an excellent opportunity to have your dream home built and designed. Besides, you can take advantage of the perfect location and good pricing out of a buy-off plan.
There’s a risk that comes with purchasing a house that doesn’t exist yet, however. For this reason, you need to perform due diligence before signing a contract. Here’s our guide to buying off a plan and what factors to consider:
1. Personal considerations
A buy-off plan takes about 12 to 18 months for the house construction to be completed before you can move in. Before signing a contract, assess yourself if you’re willing to wait. Also, there’s a huge difference between finding a newly constructed home and building a new house. The latter is a long-term process that has to meet your personal needs and wants. Hence, you have to assess if the contract is the right option for you and your family.
2. The right lender
Various lenders can fund your house construction, where their policies vary from one mortgage to another. While private institutions typically require you to have a 20 percent deposit, government ones may have no deposit at all but a high monthly contractual payment (MCP). For this reason, you have to shop around for the best lender that can finance your house construction. You also have to be highly critical of the loan with interest that will allow you to pay in the long run.
3. Your hired developer
As the developer plays a crucial role in helping you achieve your dream home, hiring the right one is imperative. Be sure to conduct research to look for prospects and do your homework. Check their portfolios to gauge their knowledge, skills, and level of expertise in real estate. Reach out to past clients to see how their services have been. From there, you can choose the right developer that can turn your home vision into reality.
4. The real estate market
Before buying off a plan, you must study and understand the current real estate in Davison, Michigan. Understanding the market is an integral part of your home-buying decision, particularly when it comes to location and pricing. It’s best to assess and project the value of your would-be property. Check if it’s the right time to buy off a plan too. When your realtor tells you so, go ahead and take the plunge.
Conclusion
Buying off a plan is an excellent option any homebuyer can take. To make the most of it, consider the four crucial factors outlined above—personal considerations, the right lender, hired developer, and the real estate market. With all these in mind, you’ll end up having the right house construction that you can, later on, call your—dream home!
Looking to buy off a plan for your dream home? Let our real estate experts help you every step of the way! We have a handful of homes for sale in Davison, Michigan, right at your disposal. Consider taking a look at Maple Creek Village, a growing subdivision of planned constructions!