Building Your Next Home in Avon? What to Know Before You Sign the Builder's Contract

Avon is one of the clearest growth stories in Northeast Ohio. Census figures show the city went from about 7,300 people in 1990 to about 11,400 in 2000, 21,200 in 2010 and 24,800 in 2020, with a 2023 estimate near 25,400. From 2010 to 2020, Lorain County as a whole grew about 3.9%, while Cuyahoga County lost about 1.2% of its population.

All that growth means new construction, and a lot of move-up buyers end up in a builder's model home in Avon. I've built homes through BAMCO Builders, so I know this process from the builder's side. Here's what I'd want a move-up buyer to know before signing anything.

The person in the model home works for the builder

When I teach agents about open houses, one of my main points is that the agent sitting in the open house works for the seller. The same is true in a model home. The sales rep is often friendly, knowledgeable and helpful, and their job is to represent the builder.

That's not a criticism. It just means you should have someone in the deal who represents you. Many builders require your agent to be registered on your first visit, so bring your agent along, or at least ask about the policy, before you walk in.

The builder's contract is the builder's contract

Most builders use their own purchase agreement, not the standard form you'd use to buy an existing home. It's usually written to protect the builder on completion dates, price changes, deposits and what happens if you need to sell your current home first. Read it closely, and have it reviewed by your agent and, if you want, an attorney before you sign. Ask specifically:

• What happens to your deposit if you can't close?
• Is there a completion date, and what happens if construction runs late?
• Can the price change after you sign?
• What's included in the base price, and what's shown in the model that isn't?

Understand the warranty before you need it

Most builders offer a warranty, but the details vary. Ask for it in writing before you sign, and read what's covered, for how long, and how you report a problem. Some items may be covered for a year, while structural items may have a longer term. Keep a running list of issues as you live in the home, so nothing gets missed before a coverage period ends.

Base price, lot premium and upgrades

The model home is usually loaded with upgrades. The base price usually isn't. Between a lot premium, structural options and design-center selections, the final price can land well above the number on the sign. Set your upgrade budget before your design-center appointment, not during it.

Here's the move-up wrinkle: an appraiser has to support the final price. Upgrades you love may not all show up in the appraisal, and if it comes in short, you may need to cover the gap in cash.

Get your own inspections, even on a brand-new house

The city inspects construction for code. A private inspector works for you. On new construction, I'd want two inspections: one before the drywall goes up, when framing, plumbing, wiring and ductwork are still visible, and one before closing. Then, before the builder's first-year warranty runs out, walk the house again and put any issues in writing.

Timing the sale of your current home

A new build's completion date is a target, not a guarantee. Weather, materials and inspections can all move it. If you need the equity from your current home to close on the new one, plan your sale around a range of dates, not one. Ask about the builder's policy on contingent contracts, and think through a backup plan, like a rent-back from your buyer, in case the new house isn't ready.

New construction or resale in Avon?

New construction gets you a new home, your choices and a warranty. A resale gets you a known price, a finished lot with mature landscaping, and usually a faster move. Neither is right for everyone. If you're moving up into Avon, tour both before you decide.

It also helps to compare the total cost, not just the price. A new home may cost more up front but need less in the first few years. A resale may cost less but come with a roof, furnace or windows that are closer to replacement. Put both on paper side by side, including the upgrades you'd add to the new home and the repairs you'd likely face in the resale over the first five years.

Moving up in Avon or Lorain County?

If you're thinking about building or buying your next home in Avon, we'd be glad to represent you from the model home to the final walkthrough. Schedule a time with me or someone on our team at 21mike.com.

Mike Ferrante
The Mike Team at LPT Realty
www.21mike.com
Google Business Profile: https://g.page/r/CSQoYzel0Z68EAE
+1 (216) 373-7727