New construction homes is an option for buyers when they aren’t finding exactly what they need on the current market. We have New Home Consultant Jenny Hanson from Lennar Minnesota here today to answer a few common questions about new construction options.
Team Lucky Duck: Why would a buyer benefit from building a new home?
Jenny Hanson: I have purchased both new and existing homes and I recommend buying new. As the first one to live in the home, it feels like a clean slate to make your own mark. You don’t have to worry about the maintenance or activities that the previous owners did. New construction homes come with warranties that protect you from any issues, whereas it might come out of your own pocket when purchasing an existing home.
TLD: When someone is looking to build a new home, what do you see them looking for most often?
JH: Typically they want a customized floor plan that will fit their family’s needs. Maybe they want laundry upstairs vs. on the main floor. Also, people really like the idea of being part of the founding community sense in the new neighborhood. There is a sense of bonding that happens in a new construction development because they’re all coming in at the same time. As builders, we host community events to draw the neighborhood together too, which helps a lot.
TLD: Can you tell us a little bit about the Summerlyn development you’re working on right now?
JH: We are in two neighborhoods in Lakeville with two product lines that have different square footage and price points. Homes range from $366,000 to $500,000 depending on your plans and options. The neighborhoods have wonderful topography with rolling hills and manmade ponds. We also have a “no monotony” policy where we won’t have the same floor plan or color package next to each other to create a diverse neighborhood. We’re in School District 194, which has really strong schools too. Lastly, we’re the only neighborhood in Lakeville to have a community room and pool and the City of Lakeville will be putting in a park.
TLD: What kind of incentives can a buyer get when they purchase new construction?
JH: Incentives vary each month and we’re always rolling out new ones. Typically we will contribute financially to their options and upgrade packages.
TLD: How long does it take to build a new home?
JH: It takes roughly six months. Once we have a signed purchase agreement, it can take up to two months to get the building permit to start digging on the land. Then it takes about four months to build the home and we leave a month of wiggle room for any weather and building delays.
TLD: How does the inspection process vary from buying an existing home?
JH: Every step of construction requires a city inspector’s approval to ensure everything is meeting code. We are constantly having people out from the city to make sure everything is meeting code so we find that an outside inspector is unnecessary. We have never had an inspector come back and tell us something doesn’t meet code. We do not consider inspector’s suggestions but we will change anything that isn’t up to code.
TLD: Can a buyer qualify for the same financing options as an existing home?
JH: Absolutely. They can work with a lender to receive a conventional, FHA and VA mortgage.
TLD: What sets Lennar apart from other builders?
JH: Every home gets a concrete porch and a garage floor, no matter what time of year. Some builders will cut costs by not putting in a garage floor during the winter or they will install a wood porch. We try to eat as many building costs as possible so the buyer only needs to provide their earnest money prior to closing. We have a lot of nicer features that are automatically included.
Jenny is currently working with the Summerlyn development in Lakeville, MN. If you would like to learn more, please contact us or see what new construction options are currently on the market. A big thank you to Jenny Hanson for taking the time to answer all of our questions on new construction!