We’ve got a deal!
I am beyond ecstatic for my clients who chose to build a KB paired home. After looking at many resale homes and considering all of the awesome builders in Painted Prairie, my clients decided this home would be a perfect fit for their family.
In resale world, we would say we’re under contract. However, when purchasing a new build home, signing the “purchase agreement” is what gets the ball rolling. So what does the process look like? Keep up with me as I give regular updates on our experience with building a KB paired home.
Floor Plan
First up was picking a floor plan. They have decided on the Walnut floor plan. This is one of the larger floorplans KB is offering out here at Painted Prairie. What I especially love about this floorplan is the versatility. For instance, there is a den on the first floor which could easily be conformed into a bedroom. There is also a large loft on the second floor which can also be turned into a bedroom. My clients are not going to close in the loft space and will keep the den as a separate living area. The Walnut features 3 large bedrooms on the second floor. (I’m so excited to see what they’re going to pick at the design center – but that’s another blog post J)
Lot Selection
After picking out which floor plan they liked, it was time to pick out a lot. Picking out a lot is more than just picking out which view you think you’d like – plus, it can be a little daunting to look at a large field of dirt to determine what your view will really be in the coming years. Check out this blog post my colleague and teammate Mariel Ross wrote about choosing lots in Sterling Ranch. The lot premiums are a lot higher in this neighborhood, but the principals apply here at Painted Prairie.
Right now builders in Painted Prairie are really motivated to sell homes which is great for you!! Recently, KB was giving away 2 lots for free (something virtually unheard of in many other new build communities). With that said, most lots in this neighborhood run between $5,000 – $10,000.
My clients selected a BEAUTIFUL lot which will boarder the first park. I cannot wait to see the finished product of both the home and the park!
Question: If my lot premium is $5,000, do I need to come up with the funds at the time I sign the purchase agreement?
Answer: No. The lot premium is usually rolled into the loan on the home.
The Purchase Agreement
Here’s the REALLLY exciting part of the entire blog – the purchase agreement! I’m being sarcastic, but the purchase agreement is really the vital piece of the entire puzzle. I will add here that at Focus Real Estate, we have helped hundreds of clients all over the Denver metro area building new homes and have reviewed all the contracts. I won’t say there’s nothing we haven’t seen before, but I can tell you we will always work to get you the answers you want.
My clients have allowed me to write about their experience and I love that I can actually show all of you real numbers of a home that is actually being built in Painted Prairie.
The purchase price is the base price of the home. This is the price that is advertised. As I’m sure you are all aware, when building a new home, there may or may not be a drastic final or “all in” price when the home is complete.
Lot Premium
$360,000
Sales Office Options
$5,000
Studio Options Total
$0
Total at Time of Sale
$0
Deposit to be collected at Contract
$1,500
So as you can see, we’re currently at $366,500. If the clients decided to do absolutely no upgrades at all, this would be their all-in price. The $5,000 is the lot premium and the deposit is $1,500. This deposit is credited towards their final purchase price.
If you all of a sudden decide this isn’t the home for you, you can get your $1,500 back – but you have to make that decision in 7 days. Some other builders may have a different policy, but generally your deposit is nonrefundable after 7-10 days of signing the agreement.
As soon as we hit the design center, we will have a total for the studio options. As every home and every person is different, it can be hard to say how much your total will be. On a completely general level, I advise adding somewhere between $10,000 – $20,000 to your design center budget.
Question: Will my deposit ever go up? Or will KB expect any kind of payment between now and the time my home is finished?
Answer: Maybe. KB (and any other builder) will not ask you for additional funding between signing the purchase agreement to the time of close. However, if you see something really special (and likely really expensive) at the design center, they may ask for an additional deposit to help support that item – maybe you’re picking a really sweet range and it won’t fit in the designated spot – in this case, the builder may do a little bit of customization to allow you to choose that range. PLEASE NOTE HERE: NONE OF THE BUILDERS AT PAINTED PRAIRIE ARE CUSTOM BUILDERS. There may be circumstances when you want to move a wall or add additional customizations. Nine times out of ten, you will need to wait until you are closed and hire a third party to come in and do that construction for you.
Question: Can I negotiate price with the builders?
Answer: Generally no. Because Painted Prairie is in the early stages, builders will likely negotiate the lot premiums but they hardly ever negotiate the actual base price or upgrades. However, I always ask and see if I can get my clients window coverings or blinds or a refrigerator – something. Sometimes the builders will agree, sometimes they won’t. It truly depends on what their recent sales look like.
Whichever home strikes your fancy and you’d like to know more about, I would love to help you with this. Many builders are offering promotional items (such a design center credit, closing costs, etc.). Most of the time, these sound like deals and are reason enough for you to sign a contract before contacting a Realtor who specializes in the new build process. When hiring a Realtor, you will not be charged a thing and this will not affect the purchase price of the home. To learn more about new build home contracts, click HERE.
Ashley Faller is a realtor who specializes in helping clients budget for, design, and build their dream homes in communities. At Focus Real Estate we’ve helped clients build hundreds of new homes around Denver with Lennar, Oakwood, Richmond, David Weekley, KB, and many other builders. Learn more about what I do HERE. If you’d like to chat, shoot me a note at ashley@focus-realtors.com and be sure to “Like” Painted Prairie Living on Facebook. Painted Prairie Living is powered by Focus Real Estate.
