Building Douglasville Homes in Today's Market

A prospective client contacted me recently with some criteria for their new home search. They had almost made up their mind on  the Riverwalk Douglasville Community but weren't enamored with the current inventory. They were leaning towards purchasing a lot and having a new home constructed. A pretty pricey subdivision, these clients are planning to spend a good deal of money and want to be sure that they get exactly what they want in a new home.

Many agents would leap at this, these potential clients know what they want and are ready to pull the trigger, a rare case these days it seems. Adhering to my philosophy of providing the most information possible and allowing clients make their own decisions, I felt it was my duty to advise these clients of some factors which may have an impact on new construction starts and how to possibly mitigate them. While this may have an adverse effect on a potential sale I prefer to know that I have disclosed everything that may have a negative impact on this transaction.

These issues could impact any new construction starts for new Douglasville homebuyers so I decided to recap them here for anyone who may be looking into build a new home in the West Georgia area:

1. Due to the housing market downturn and credit crunch home inventory is at an all-time high and many builders have delayed new starts or are unable to finance new starts until they have sold some standing inventory. Many Georgia Builders are desperate right now and some are on the verge of bankruptcy. Rest assured that they will not be offering any discounts on a new start home and will likely charge top dollar for everything to recoup their losses for the year.
2. The builder situation and rising cost of materials creates a very real possibility that some builders will attempt to 'stretch their dollar' by cutting corners in workmanship or materials on any homes started now. This is the rumor going around the office but no builders have been specifically mentioned. This is always a consideration with building any new home and I advocate consistent monitoring at every phase of new construction to safeguard against this possibility.
3. The water crisis could soon be a serious issue for any new Douglasville area building permits. Paulding County recently announced that they would not be issuing any new permits, saying that they could not knowingly increase the population if there may not be enough water for current residents. Douglas and Carroll County may soon follow suit. If you are thinking about building you may want to make a decision fast before it is no longer an option for you. I would have your REALTOR® investigate with the county and WSA to make sure that your project will not be affected by any future decisions in this realm.
4. Financially you will be much better off purchasing from the current overstock of Douglasville homes for sale. It may make sense to even wait until a home that you love becomes available rather than attempt to build right now. Many sellers, builders, and banks are desperate to unload their properties right now and will do so at considerable equity gain to the purchaser. Consider the financial ramifications of purchasing an existing home with $50K-$75K equity or paying $25K too much attempting to build right now. The laws of supply and demand do not look kindly on those attempting to build widgets when there are currently too many widgets for sale.
5. If you don't find what you want consider altering an existing property. Maybe that home you love but didn't offer enough privacy just needs a couple of fast growing trees planted out front, or the outdated kitchen needs an upgrade. In many cases these homes can be exactly what you want with a simple cosmetic change.

If you truly can't find a home to fit your needs then building a new home may be your only option. I believe that by arming yourself with the latest information, negotiating firmly, monitoring builders, and sticking to your guns you can still build a new home in Douglasville without losng your shirt but make sure you do your homework. Please contact me if you need guidance with any Douglasville GA real estate issues.

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