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buying a new home

Building Your Dream Home: How to Choose the Perfect Floor Plan

Building your dream home in West Michigan from the ground up is an exhilarating journey, but one of the most crucial decisions you’ll make along the way is selecting the perfect floor plan. With so many options available, it’s important to approach this decision with careful consideration. Don’t worry, though – I’m here to guide you through the process!

  1. Know Your Lifestyle: Start by envisioning how you’ll live in your new home. Are you a social butterfly who loves to entertain guests? Or perhaps you prefer cozy nights in with your family? Understanding your lifestyle will help you choose a floor plan that caters to your needs and preferences.
  2. Consider Your Future: While it’s essential to design a home that meets your current needs, don’t forget to think about the future. Are you planning to expand your family? Will aging relatives be moving in? Keep these factors in mind to ensure that your floor plan remains functional for years to come.
  3. Evaluate Room Layouts: Pay close attention to the layout of each room. Think about how you’ll use the space and whether it aligns with your lifestyle. Consider factors such as room size, location within the home, and flow between spaces. A well-designed floor plan will enhance both comfort and functionality.
  4. Think About Flexibility: Flexibility is key when it comes to selecting a floor plan. Look for features that can easily adapt to your changing needs. This could include multi-purpose rooms, convertible spaces, or options for future expansions. Keep your options open to accommodate any unexpected changes down the road.
  5. Maximize Natural Light: Natural light can transform a space, making it feel bright, airy, and inviting. When choosing a floor plan, prioritize designs that maximize natural light throughout the home. Consider factors such as window placement, orientation, and the use of skylights or glass doors to bring the outdoors in.
  6. Consult with Experts: Don’t hesitate to seek guidance from professionals, such as architects, designers, or real estate agents (ask me, I’m happy to help!!). They can offer valuable insights and help you navigate the complexities of choosing a floor plan. Their expertise will ensure that your vision becomes a reality while staying within budget and meeting local building codes.

Remember, building your dream home is a journey, not a race. Take your time to explore your options, ask questions, and envision the life you want to live in your new space. With careful planning and consideration, you’ll soon find yourself stepping through the doors of your perfect home.

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What is an Escalation Clause?

In this market, buyers are wising up to ways they can make their offer stand out above the rest. One strategy? Including an escalation clause.⁣
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What is an escalation clause? Let me explain.⁣
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An escalation clause automatically increases a buyer’s offer by a certain amount, for example $2,000, each time another buyer makes a higher bid up to a predefined cap (set by the buyer). It essentially eliminates the back and forth of offers and counteroffers.⁣
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This is a common practice in this current market where so many buyers are competing for the same property. Is it always the best strategy?? Not always! Make sure that you hire a Realtor that has a lot of experience competing in this market. They will be able to guide you to which negotiating strategy is the best for your scenario!

Looking for more ways to write a competitive offer? See my article on Tips for Winning in a Bidding War.

Common New Homeowner Mistakes to Avoid

Congratulations! You have officially closed on your home…..Now what? Below are a few suggestions of some things to consider before moving forward as the owner of a new home!

01. Ignoring Home Maintenance Issues

When you move in, your home is usually in pretty good shape. But like all man-made things, a house requires ongoing maintenance. Home maintenance includes tasks like cleaning the gutters, power-washing the house, prepping your pipes for winter, and much more. Later in the packet, I break down some seasonal maintenance suggestions to help you stay up to date.

02. Not Budgeting for additional Expenses

There are some additional fees that you need to be aware of and keep in mind in addition to your monthly mortgage. A few of the fees to keep in mind are homeowner’s insurance, property taxes, utilities, HOA fees, as well as the cost of buying the tools and equipment to care of the landscapeing and handle DIY repairs. Creating a budget ahead of time will help you tackle these additional charges.

03. Making Major Renovations Immediately

Before making any major renovations, give yourself some time to live your home, see how it feels, and then determine if any large renovations are needed. Small changes will be expected, I suggest waiting to make any major renovations.

04. Failing to Establish an Emergency Fund

Life happens and certain items that come with a home can be expensive. Having an emergency fund for any unexpected emergencies could be life-changing. I suggest putting away 1 to 3 percent of your home’s purchase price each year to develop your emergency fund. For example, if your home costs $250,000, set aside at least $2,500 each year if possible. You could make one large deposit or spread the payments out in monthly deposits.

I’m always happy to answer questions or share more advice for new homeowners. Feel free to reach out to me with any questions!!

What is an Appraisal Gap?

An appraisal gap is the difference between the agreed upon purchase price and the value that the appraiser determines at the time of appraisal. For example if a seller accepts a buyer’s offer with a purchase price of $250,000 and the appraisal comes back at a value of $240,000, the appraisal gap is $10,000.

In this current market, there is a possibility for homes to appraise for less than a buyer is willing to pay. Appraisers use past sales as comparable properties in their reports. With the low inventory and amount of buyers competing for the properties on the market, market values are rising and it may be difficult for appraisers to find comparisons to support the value.

To overcome this obstacle, many buyers are offering appraisal gap coverage or guarantees in their offers to compete. What does this look like? In our earlier example, if the buyer included an appraisal gap coverage of $10,000 in their offer, the seller will get the full purchase price of $250,000. The buyers would have to bring an additional $10,000 (the shortfall of the appraisal) to closing in addition to their down payment and closing costs.

For more ideas on how to write a competitive offer check out this blog post.