How Much Does A New Home Cost?

How much does a new home cost?

This is one of the most frequently asked questions we get when it comes to building a new home. Unfortunately, it is also one of the few questions that we can’t answer very specifically. Think of it like this:

·         Can you tell me how much it costs to take a vacation? Well, are you planning a weekend getaway to a cabin in Gatlinburg or a week-long cruise to the Caribbean?

·         How much should I expect to spend on a new car? Are you planning on getting a Kia, a Lamborghini, or something in between?

·         What is the average cost of a dinner for two? If you plan on hitting up the local fast food place, your bill will be a lot less expensive than it would be at Malone’s Steakhouse.

The problem with asking open-ended questions like these is that there are so many variables that go along with each question that it is nearly impossible to give an accurate answer without getting more information first.

The same is true when it comes to calculating the cost to build a new home. Are you looking for a 3-bedroom home, or do you need 4 (or more) bedrooms? Are granite countertops in your kitchen a “must have”, or would laminate countertops work for you? Do you have to have hardwood floors throughout your house, or is carpet your preferred flooring choice? Because everyone’s wants, needs, and wishes for their home are so different, it’s hard to give a one-size-fits-all price for how much a new construction home will cost.

We have found over the years that the typical amount of upgrades people choose for their home are around 15-20% of the base price of the home. That means, if the house you choose has a base price of $200,000, the typical amount of upgrades will be between$30,000- $40,000. Of course, that number could change, depending on the individual preferences of your home. If you and your family decide that a walk-out basement, an upgraded kitchen, and an elegant master suite are on your must-have list, then you can expect to pay more, possibly 25% or higher, than someone who has different desires for their home.

We know that buying a new home can be confusing. We are here to help you plan and design your new Ball Homes home within your budget. If you have questions about the costs for a home you are considering, we would be more than happy to discuss it with you. Contact a Ball Homes Specialist today!

Big Changes to FHA Loans

This post is brought to you by Mike Dunn and Jeff Sharp of Walden Mortgage Group.

There are two big changes going on in the mortgage world in the next few months. One of the most popular types of low down payment mortgage loans known as a Federal Housing Administration loan, or FHA loan for short, will be making changes to the mortgage insurance premium collection policy (you may know it as mortgage insurance, or MI). 

If a new borrower’s MI is not ordered before April 1^st (meaning the final contract is completed), the annual MI, which is included in the monthly payment to the lender, will increase by .10%. That means that if you have a loan amount of $180,000, you would pay an extra $15 per month on your mortgage payment and, more specifically, towards your MI, if your MI is not ordered before the April 1^st deadline.

 

So what do you need to do?

 

If you are already in a loan, locked in, and not looking to refinance, these changes do not affect you. If you are in the process of buying a house and need FHA financing or you are planning on refinancing, you need to speak with your Walden Mortgage Group loan officer as soon as possible to lock in the lower MI.  You must have your final contract completed by Friday, March 22^nd at 5:00pm to ensure proper processing turn times are allowed for what will surely be a busy last week of March. 

 

The second, and possibly more impactful change, will occur for new borrowers who do not lock in their MI before June 3^rd, 2013. Currently, if you are paying MI, you can drop this added monthly fee after 5 years of owning your home, as long as you have made on-time payments and have paid the loan down to 78% of the original sales price. For those who miss this deadline and still

desire to use FHA financing, you will be required to pay the higher MI for the entire term of your loan!  After the 5^th year in your new home and with a loan amount under 78% of the original sales price, you would have to refinance your loan to drop the MI, but likely to a higher interest rate as rates will likely not be as low as they are today. In order to lock in your MI before the June 3^rd deadline, a completed contract is needed before Friday, May 24^that 5:00pm. 

 

These changes can be confusing. Walden Mortgage Group is here to help. If you have any questions regarding FHA loan changes, mortgage insurance or today’s interest rates, contact your Walden Mortgage Group loan officer at 859.514.4444 or visit our website.

  

Louisville Top Producer Luncheon

We, at Ball Homes, are so blessed to have a wonderful group of Realtors who work diligently for our company on the Ball Homes Sales Team. Members of our Louisville Ball Homes Sales Team from Prudential Parks and Weisberg were honored at their annual awards luncheon last week for their sales and service to our company over the past year. Award receipients included Louise Miller, Daniel Spanyer, and Sherry Spanyer.

Louise Miller was the top award winner company-wide, winning the Prudential President's Circle award for her sales throughout 2012.




Daniel Spayer won the Prudential Leading Edge Society award for his sales. Sherry Spanyer also won the Charles Weisberg award for benevolence to the community and real estate industry.


Ball Homes and Prudential Parks and Weisberg have had a long-standing relationship and we are so proud of their accomplishments and their commitment to excellence. Congratulations!

Louisville Agents Win Big at Awards Banquet

We want to give a big congratulations to both Sherry Spanyer and Louise Miller, members of the Louisville Ball Homes Sales Team. They won awards for their volume of new construction sales at the Home Builders' Association of Louisville Sales and Marketing Council Award Banquet.


Louise also won top honors for the number of new construction units sold over the past year!



Congratulations to both Realtors! We are honored that you are a part of our team! If you would like to congratulate them, visit them at the Notting Hill model home!

A Testament to the Ball Homes Experience

Ball Homes is a family-owned and operated company that has been building affordable homes for Kentucky families since 1959. During that time, we have met a variety of different people who have entrusted the construction of their home to us. We understand that there are many different options out there and we are honored that you have chosen us to build your dream home.

We believe that our best advertisers are our customers. Their feedback truly matters in every step of the homebuilding process, and we ask for it regularly to make sure that our clients are completely satisfied with the work they have trusted us to do. Here is just a small sampling of what people are saying about us.

“It is rare to find a company, such as yours, that takes pride in their work and does what they can to keep their customers happy . . . Thank you for the dedication you give to your homes and your customers.” — C.P.

“We want to take this opportunity to thank you and your Customer Service organization for all the help, support, and immediate response to our needs. We have built a number of custom built homes over the last 25 years and the service and cooperation we receive from Ball Homes’ entire organization has been equal or better. The Customer Service personnel and the subcontractors have been a pleasure to work with especially when so many companies tend to ‘walk away’ from their commitments… Again, thank you for the excellent service, much appreciated” —L.Y. and S.Y.

“You have an excellent team . . . We love our new home and have been very impressed with the quality of workmanship and the quality of service provided. I just wanted to take the opportunity to let you know how wonderful the experience has been.”—S.M.

"This is the fifth house we have built and this is by far the best! The workmanship is superior! We are very happy customers!" -- FK and JK

"I closed on a customized Ashley II Ball Home . . . Not only was the floor plan amazing, but the available options were tasteful and complementary. I have had several compliments from friends and family, as well as from impressed passersby. My Milestone agents . . . and Walden Mortgage were unfailingly courteous, professional, patient and available. In fact, when the closing was delayed and almost jeopardized my trip abroad, all of my agents, in concert the regional and national directors, came up with a practical solution to the problem. Thus, despite some moments of anxiety on my part, when all was said and done, Ball Homes came through for me, and I was able to make my trip. Since closing, the quality service has continued through the Customer Service Department . . .[My agent] has maintained contact, to make sure that I am thrilled with my investment. And I am. I have made frequent and terrible oaths that this is the last house I will ever build or buy, but if that ever changes, I know whom I will be calling …”— E.E. 

To read more of our testimonials, visit our website today! We would love to hear from you on how we can make your dream of building a home come true!