Building Homes, Strengthening Relationships, Creating Opportunity for Realtors® and Homebuyers

NVAR’s inaugural Realtor®-Builder Series presenters greeted a standing room only audience at the Fairfax office on Wednesday, April 13. Speaking about new home financing, design, sales, construction, and contracts, presenters offered valuable tips for the Realtor® attendees interested in better serving their clients interested in new home construction. The event concluded with a networking happy-hour reception. 
These takeaways could help ensure a smooth new home transaction:

FINANCING OPTIONS
Curtis Scott with event sponsor Everbank discussed three ways to finance:
• Self-financing
• Two-time Closing – interest-only loan with balloon for a set time period; refinance at end of construction to a permanent loan.
• One-time Closing – loan automatically rolls into a permanent loan after construction.
Scott cautioned that the construction lending process is more involved than a standard purchase loan. Realtors® should allow plenty of time.

THE ARCHITECT VISION
Warren Ralston of W.C. Ralston Architects explained how designing a custom home can: 
• Tailor the home to a buyer’s lifestyle
• Build instant equity
• Create desired inventory by “re-skinning” and renovating an existing home, in a great location.

THE HOME BUILDER VIEW
Wendy Anderson, Rhonda Shapiro and Lisa Sullivan of Stanley Martin offered the following tips for Realtors®:
• Research the project before bringing clients
• Accompany clients on first visit to model
• Be up front with questions or concerns

THE REALTOR® PERSPECTIVE
NVAR Board Member Christine Richardson with Weichert, Realtors® offered insight about the tract vs. custom home process.

Tract Homes
• Faster Build Timetable (four to nine months)
• Easier process – fewer options that are offered by the builder
• Less expensive than custom construction due to economy of scale
• Pay at the end
• New subdivisions often create close-knit neighborhoods 

Custom Homes
• Get exactly what you want
• Longer process (9 – 24 months)
• Get to/have to select everything
• Pay as you go with loan amounts due in phases
• Higher cost per square foot due to the one-of-a-kind deliverables