Some buyers are frustrated with the limited number of properties on the market. Unable to find a house that meets their needs, they decide to look into building a home. This is a great way to get exactly the style and design of home you would like to own. It's also a way to get a very energy efficient home that is built to the latest standards and codes using some of the great new building materials that are available.
Also, if you are willing to contribute to some of the improvements, such as landscaping and fencing, your “sweat equity” will increase the value of your new home while saving you money. There are several steps in the new home process, but one of the first is finding a buildable lot. I am receiving many calls from buyers who are asking why that inventory is so limited.
There are two main reasons we have a shortage of buildable lots. First there is a limited amount of developable land. This is due to our topography, open space, zoning, floodplains, utilities, etc. Second, and most relevant today, is the lack of development loans for small developers. The banks are making constructions loans, but development loans, used to put in streets and utilities, are very hard to find for local developers. Thus the number of lots available for individuals and small builders keep decreasing. This is also increasing the cost of the few lots that remain. Other lots are no longer offered for sale because some of our local builder/developers are afraid of running out of lots and not being able to build for their customers.
My advice today, is to work with a knowledgeable REALTOR® who understands new construction and a good local builder who has a few lots or the connections to help you secure one of available lots in this decreasing inventory.