In the real estate industry, there are basically three different categories of home building:
1. Tract homes built by a developer, with nicely decorated model homes of the different floorplans that will be built within the community. Most buyers buying new homes are buying tract homes. Buyers usually have the choice of selecting the options that go into the home (appliances, flooring, countertops, lighting, etc.) unless the home is an inventory home that has already been completed. You can find tract homes in the cities of Roseville, Rocklin and Lincoln built by developers such as: Centex Homes, JMC Homes, JTS Communities, Lennar, Shea Homes, Signature Properties, Standard Pacific Homes, Taylor-Morrison and Tim Lewis Communities.
2. Spec homes are a product of builder speculation, homes specifically built for resale and profit. Many times, a builder will use the same plan they’ve used before to save on costs, so a spec home will typically not be “unique” like a true custom home would be. During the real estate boom, spec homes were popping up everywhere…but nowadays, it’s not surprising that there are hardly any spec homes being built in Southwest Placer County. The reality is that most existing homes sell for significantly less than what it costs a builder to buy a lot and build a home. It has also become difficult for builders to obtain financing for spec homes, not only due to stricter lending guidelines, but builders (like Hegseth Development and Starbuck Construction) now have a credit history showing their properties lost to foreclosure and/or short sale.
3. Custom homes are designed and built from scratch, after the owner has purchased the lot. This category of home building requires the most time and effort from the homeowner, who typically hires a team of professionals to complete the home building project, such as a surveyor, engineer, architect, general contractor, subcontractors, suppliers, etc. For someone looking for a unique property, building a custom home can be the solution to meet all of their needs, as long as they can find the balance between their budget and their wish list. One of the most difficult things to predict when it comes to building a custom home is the total project cost: land, utilities, plans, permits, construction…and let’s not forget the unforeseen circumstances that require additional money, such as legal fees if a dispute arises or finding out that the land has soil issues and will require additional engineering.
Having an experienced Placer County real estate agent to guide you through the home building process is invaluable if you’re considering buying a lot and building a home in Placer County. (“Experienced” means having recently built a custom home, not just selling real estate.) Bob and I have firsthand experience building a custom home and we both were very much involved in the entire project (lot selection, plans, permits, HOA approval, construction) which was completed and sold in January 2010. We have also purchased four vacant lots (one waterfront, two acreage parcels and one income-producing vineyard) between 1997 and 2010, so we’re able to offer our knowledge, experience and guidance to our clients who are thinking about buying a lot and building a home in Placer County, Sacramento or El Dorado counties.
We offer a free consultation to find out exactly what you’re looking for and that you are also financially qualified for the purchase of a lot plus the cost of plans, permits, construction and more. If we all decide to work together to find a lot for you to build on, we’ll sign a Buyer Broker Agreement that describes what you’re looking for and the scope of our duties as your agents. From there, we’ll show you properties that are not only listed on the MLS, but also those that are in foreclosure and coming up for auction at a trustee’s sale. We are also available as consultants to guide you through the design and building process, which can be especially helpful if you’re considering being an owner-builder.
Souza Realty in Placer County
Souza Realty specializes in Placer County, California real estate: foreclosures, trustee sales and Placer County lots & land. Bob and Leilani Souza are a husband & wife Placer County real estate team actively investing in real estate since 2001, flipping properties as well as holding them for rentals. The Souzas are also experienced in custom home development and are familiar with the entire home building process, from lot selection, floorplan design and permits to where to shop for the best deals on materials and supplies.
If you could benefit from our knowledge when it comes to investing in Roseville, Rocklin, Lincoln, Loomis and Granite Bay real estate or you’d like our guidance when it comes to buying a lot and building a home in Placer County, please contact us for a FREE consultation.
Bob Souza
Leilani Souza, CRS, e-PRO, TRC
Souza Realty (DRE #01262541)
925-513-3400 Bob
916-408-5500 Leilani
bob@souzarealty.com
leilani@souzarealty.com
Serving Southwest Placer County: Roseville, Rocklin, Lincoln, Loomis, Granite Bay
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