5 Benefits of New Construction

With low inventory in most real estate markets across the country, more buyers are looking at new construction. Whether the home is already being constructed, or you buy a lot and start from scratch, there are many benefits to building a new home.

Move-In Ready

When you buy a previously-lived in property, inevitably, there will be something you want to change. Some homes just need minor improvements, like a fresh coat of paint, while others require a complete gut job. One of the best parts of a new construction home is that it is fully move-in ready. 

You can rest assured that plumbing and electrical are in working order, new appliances are installed and ready for first use, and every room matches your style. The only thing left to do is unpack. 

Designed for You

Starting with the layout, all the way down to countertops and color schemes, new construction is designed for you. 

When building new, you can work with your contractor throughout the entire process to make sure the floorplan meets you and your family’s needs. Open floor plans, high ceilings, and space for a home office, gym, or studio can all be incorporated into your new home.

As construction nears completion, you can select countertops, appliances, colors, light fixtures, and more. Your contractor will guide you through design options while helping you stay within your budget.

Lower Maintenance 

As a homeowner, maintaining your home is essential. With new construction, modern technology keeps maintenance to a minimum. 

Your home will be built to the most up-to-date codes and safety standards, with new plumbing, HVAC, appliances, windows, and roofing. This not only creates less work for you over the years, but maintenance costs will be less as well. 

Energy Efficient

New construction also utilizes green practices for highly efficient homes. Often, a third-party will rate the home’s energy efficiency, ensuring it meets requirements. With proper insulation, high-efficiency appliances and systems, your home will have a low carbon footprint and low utility bills. 

Home Warranty

Builders don’t just walk away after it is completed. A new home comes with a warranty, so you can feel confident about how the construction will hold up over the years. Should any issues arise during the warranty period, the builder will work with you to solve the problem. 

To make the most of these benefits, make sure you find a contractor you like and trust!

Horton Group Project Recap

As the holiday season gets underway, we can’t help but look back on the past year. Amid the challenges and unforeseen circumstances, we’ve witnessed incredible things happening in our community.

Small businesses exceeding expectations to meet the needs of the people they serve. 

Individuals going above and beyond to help others. 


The Horton Group team working together to provide the very best service to our clients. 

Every year, we’re grateful for the work we do, and this year, we feel even more honored to be helping people feel at home. 

As we move into 2021, here are some updates on our current projects:

The Residences at 66 High Street

The Social Redesign is completing a unit at 66 High Street! Nicole White, along with designer Mary Ellen Sullivan and the Horton Group team, is working on completing the newest unit in the Leete Building. The best part? You get a say in the final design of the unit! If you haven’t been following along, visit The Social Redesign on Facebook and Instagram for your chance to vote. 

In addition to new units being completed, outdoor living spaces are also coming to fruition. The pool is in at 66 High Street! Residents will be able to enjoy an inground pool overlooking the Long Island Sound come summer. We can’t wait!

Overland Lofts

The Overland Lofts is now leasing units! This project with Davenport Companies has been an exciting project. From a Willys-Overland factory to residential lofts with commercial space, this historic building is part of the Springfield, Massachusetts revitalization project. The Overland Lofts include 60 market-rate apartments, retail space, and dog park, and more!

Coming in 2021

We’re excited about a new project happening in 2021! Stay tuned for more details on this commercial space in Branford, as well as other residential and commercial development projects.

How Homebuilding Can Aid Economic Recovery

2020 is a year like no other, where communities must join forces (socially distanced, of course) and make a collective effort to support local businesses in an attempt to keep small-town economies alive. 

A major proponent to flourishing local economies is steady home building. People attract business, and housing attracts people. This year more than ever, the market is experiencing low housing inventory in many suburban communities across the United States. Housing developments create new jobs for citizens and provide desired housing options that attract residents. 

The National Association of Home Builders has tested these economic effects and have divided the economic influx into three phases. 

Phase I

Phase I includes the effects that result directly from construction activity and local industries that contribute to it. This consists of all contracted services, such as electricians, plumbers, architects, and engineers. Phase I also includes related jobs, such as truck drivers, developers, and bankers.

Phase II

Phase II includes the effects that occur as a result from the wages and profits from Phase I being spent in local economies. 

Phase III

Phase III is an ongoing effect that includes property tax payments and local spending by the occupants of the new housing units. 

As shown in the NAHB three-phase economic process, multiple forms of local income can be generated through residential construction. From more basic flows of income, such as workers spending their hourly wages on local goods and services, to more steady streams of income like annual property taxes paid. Local governments prosper from new residencies and more activity within the community. 

Masonry Construction

Building with masonry is a timeless art form that goes back many centuries. Nowadays, masonry construction is a choice for many homeowners due to the aesthetic appeal it adds to a home. 

 

Masonry consists of assembling structures from single units that are laid and bound together with mortar. This construction technique is popular for various projects due to its many advantages. Here are a few of the great benefits of masonry construction: 

 

  • Masonry is non-combustible and offers high resistance against rotting, termites, mold, and fungus.
  • Masonry structures have long lifespans and require less maintenance than many other building materials.
  • Being both durable and resistant, masonry withstands large amounts of weight and heavy storms, heat, and cold.
  • Finally, this construction technique can add insulation, ultimately lowering your utility bills.

 

Brick, stone, and concrete blocks are the most common materials used in masonry construction. We’ll dive into the advantages and disadvantages of each material.

 

Brick Masonry

brick masonry

Bricks are easier to handle and transport, not to mention cheaper than stones and concrete. Depending on the structural requirements, they adhere to different types of mortar. On the downside, bricks are less durable than stone and concrete. There are also fewer options in regard to size and color. 

 

Stone Masonry

stone masonry

This construction technique is used for building foundations, floors, retaining walls, arches, walls, and columns. Stones used for masonry construction are natural rocks and are the most durable building materials. Compared to bricks, one of the main benefits of stones is the variety of colors, sizes, and textures. However, stone masonry does require skilled workers due to ensure the structure is safe. 

 

Concrete Block Masonry 

concrete masonry

Also known as concrete masonry unit (CMU), concrete block masonry consists of solid or hollow blocks found in many sizes and colors. Concrete blocks can be manufactured to meet any size requirements for specific projects. The material is the most resistant to weather, mold, and pests. On the other hand, concrete masonry requires more manpower. Concrete blocks also increase the amount of steel to reinforce cement concrete structures. 

 

Builder Confidence Increased in July 2020

News about low inventory and historic low mortgage rates has been garnering a lot of attention in the housing market. While real estate agents have been noticing a recovery in the market for the past couple of months, the latest NAHB/Wells Fargo Housing Market Index (HMI) is also showing an increase in builder confidence. 

 

July 2020 Builder Confidence

 

In July, builder confidence in the market for new single-family homes jumped to 72 points, up from 58 points in June. This is a significant increase from April, when builder confidence plummeted to a low of 30 points, the lowest level since 2012.

 

The HMI is a monthly survey that has been conducted for 30 years. It gathers information about builder perceptions and buyer traffic for single-family homes. Anything above 50 points indicates a positive outlook for the market, and below 50 indicates a negative outlook. 

 

The Appeal of New Construction

 

Buyers are actively searching for homes. With low inventory and the desire for a floorplan to meet needs created by the pandemic (like home offices and outdoor living spaces), builders are seeing more interest from prospective buyers. 

 

“Builders are seeing strong traffic and lots of interest in new construction as existing home inventory remains lean,” said NAHB Chairman Chuck Fowke.  “Moreover, builders in the Northeast and the Midwest are benefiting from demand that was sidelined during lockdowns in the spring. Low interest rates are also fueling demand, and we expect housing to lead an overall economic recovery.”

 

Low mortgage rates aren’t just for existing homes, they extend to new construction. If you are a prospective buyer who isn’t haven’t luck with current inventory, consider building new or looking at new developments.

New Construction Loans

Buying a home may require a mortgage, but building your dream home requires a different type of mortgage – a construction loan. New construction loans can help pay for home building or renovations and work differently from traditional loans. We’ll delve into what you need to know about a construction loan and how it works. 

 

What is a new construction loan?

A construction loan is a short-term loan that covers the costs of work and materials for new-build homes. Some of the items you can finance with a construction loan include permits, contractor labor, roof framing costs, and many other expenses that come with building a house. 

 

Types of New Construction Loans

Construction lenders provide different types of loans for a variety of homebuilding scenarios. Here are some financing options when building a new house:

 

Construction-to-Permanent

Also known as “single-close” construction loans, this type of loan converts to a permanent mortgage after construction is completed. The benefit with construction-to-permanent is that there is only one set of closing costs to pay, reducing your overall fees.

 

Construction-only

Construction-only loans are also referred to as “two-close” construction loans that require closing on two different loans. The first loan is taken out for the construction. Once work is completed, the loan is paid off with a new loan, called an end loan. The end loan is based on terms locked-in as the home nears completion. 

 

Renovation Construction Loan 

If you want to upgrade your existing home instead of building one, you can look for a renovation loan. This type of loan comes in various forms depending on the amount of money you’re planning on spending. 

 

How Construction Loans Work

As mentioned previously, new home construction loans work much differently from the typical mortgage loans. The lender pays the loan to the contractor, not the borrower, in installments. Once the project has been completed, construction loans can be either converted to permanent mortgage or paid in full. 

 

How to get a Home Construction Loan

Before applying for a loan, the borrower should meet with the designated contractor to understand the total cost to build so a  loan amount can be established. The lender will then review a borrowers’ employment history, savings, income stability, and ability to pay back the loan. A property appraisal will also be obtained to support the value of the project. To qualify you will need an excellent credit score, stable income, low debt-to-income ratio, and a down payment of 20 percent. 

 

How to Find a Lender

It is important to find a lender who specializes in construction lending and isn’t new to the process. Research several lenders to obtain detailed information about their background and specific programs. We recommend that you compare construction loan rates, terms, and down payment requirements to make sure you’re getting the best deal possible. 

 

Questions to Ask Your Contractor

Finding the right general contractor for your project isn’t easy. Knowing there are plenty of important questions you need to ask potential contractors isn’t surprising, but exactly which questions to ask are crucial to the searching and hiring process. 

With that in mind, at Horton Group, we appreciate any questions our clients have. We gathered some crucial topics to discuss with a general contractor before you start working on the project together.   

Can you tell me more about your business?

Find several contractors near you and do your research ahead of time. Investigate how long the contractor has been in business and the structure of their business. Asking for business history is highly recommended as you can have a better understanding of its journey and systems set in place. 

Do you have a contracting license and certificate of insurance? 

Cities and states have different regulations on whether contractors must obtain a license. Ensure your contractor has gone through all of the necessary procedures to obtain required certifications. Furthermore, not only should you ask your contractor if they are insured, but how they are insured. All contractors should have both workers compensation and liability insurance for the specific work they perform. 

contractor and permits

Will you assist in obtaining the permits and set up the inspections required for this project? 

Not all projects require permits or inspections, but most remodeling projects can affect the structure of the home. Your potential contractor should know what kind of permits you need and how to get them. Many will also help obtain those permits for you. 

What is your timeline? 

Before you hire a contractor, ask if they can provide a start and completion date. These dates should be included in the formal writing agreement. We also recommend factoring in clean up duties and delivery delays. Additional scheduling questions you may want to ask include: 

  • Are there any other projects you’re working on now that could affect our schedule?
  • Do you have any current bids that haven’t been finalized that could impact this job?

What is your payment schedule like? 

Request price estimates from each candidate. Learn about the payment schedule and determine how surprise expenses will be factored into the budget. The Better Business Bureau advises never paying for the full price of contracting work upfront. A down payment, followed by scheduled payments, is typical protocol.

questions to ask your contractor

What are your working days like? 

Having an understanding and expectations of the contractor’s routine is vital to the hiring process. It’s important for both homeowners and contractors to know what to expect on construction days even before work begins. You can explain to your contractor what the parking situation is like, which restrooms if any are available, and if anyone will be home during construction. 

How can I get in touch with you?

Communication is always key. You need to have a clear understanding of who your point of contact is so you can ask any questions during the construction process. It is also important to get a physical business address along with business or cell phone numbers of the contractor you are working with. 

 

Although finding the right contractor for your project can require a lot of research, having a specific strategy in your mind before you start looking can make the process a whole a lot easier. If you have any questions, contact us!

 

How to Choose a Supplier

Building and restoring top-quality residences begins with the materials we work with. From concrete to siding to lumber, the right building material is essential in our business. 

Over the years, The Horton Group has built trusted relationships with product manufacturers to ensure we are getting quality materials on a timeline that works for our clients. As we continue to work through these challenging times, we are more grateful than ever for trusted suppliers who are willing to go the extra mile for their customers. 

When selecting a supplier or product manufacturer, look for these qualities to ensure you are getting quality resources from a reliable company:

Experience & Knowledge

What experience does the company have in the field? Learn who has used their materials, look at finished projects, and read client testimonials. Years in the business can indicate a business that has built trust, but it is not the only evidence of knowledge in the field. 

Quality

You need to be on the same page as the manufacturer when it comes to quality. Do you have the same expectations? You can also visit the production floor to see how they treat the goods they handle on a daily basis. 

Product Diversity

It’s good to have options. How many different selections does the supplier have on hand? If they don’t have something you are looking for, inquire about how they can source your desired materials.

Accountability

Timelines are often tight in our industry. Make sure you find a manufacturer you can trust, not only for the quality of the materials, but also the timeliness and delivery of those materials. 

Communication

Excellent communication is a must between the supplier and the buyer. Determine how reliable they are with answering questions and responding in a timely manner. 

Training and Education

As the world advances, so should our materials. Ask your supplier how they stay on top of new technology, green materials, and best practices. 

Warranty

Does a warranty back the materials? Learn about the standards of the material and the supplier. This way, if something goes wrong, you know what your options are.

It’s always exciting to work on a new project, pick out materials you love, and watch your vision come to life. Remember there are many working parts to any home construction work, and working with the right people will make the process go as smoothly as possible.

How Builders are Responding to Changing Times

Connecticut, like many states, has deemed construction as an essential business. Builders and developers have quickly adapted to make worksites and client interactions safe for all. 

According to a recent survey of NAHB members, several measures are being implemented that allow the construction industry to continue to build and sell homes. 

The majority of those who responded stated that non-construction employees are working from home during these times. Also, instead of open hours for tours, 59% of those surveyed are scheduling private showings. 

Though not mentioned in the survey, many builders are also implementing virtual options. At the Residences at 66 High Street, interested parties can either schedule a private showing (two people per showing), or a virtual showing. We are able to utilize technology to best fit the needs of every individual. 

Even with an essential business status, not all construction jobs have continued. Of those surveyed, 48% have halted construction projects, or will do so in the near future. Fortunately, however, only 25% have needed to lay off or furlough workers. 

At The Horton Group, we continue to make adaptations and follow CDC guidelines so we can continue to move forward safely. 

 

Fiberglass vs. Spray Foam Insulation

Insulation may be hidden behind the walls, but it plays a big role in keeping you comfortable all year long. 

The job of insulation is to keep the house warm during the winter and cool during summer. With heating and cooling accounting for about half of the energy used in the home, proper insulation can cut back on energy usage and save homeowners money. 

Keep reading for a comparison between two types of insulation: fiberglass and spray foam. 

Fiberglass

Fiberglass insulation is the more traditional form of insulation. This type of insulation comes in pre-cut rolls or blown-in loose fill. It works to regulate air temperature by trapping air inside tiny glass fibers, slowing the transfer of heat. 

Pros of Fiberglass

Fiberglass insulation is inexpensive to install when compared to other types of insulation. It comes in pre-made R-Values, and it maintains performance levels for an extended period of time. Fiberglass is also easy to install.

Cons of Fiberglass

Though commonly used and easy to install, fiberglass is not as effective as spray foam at maintaining comfortable temperatures. Fiberglass cannot fit into every crevice, which can allow for air leaks. This is especially true in colder regions.

Spray Foam

Spray foam insulation is newer than fiberglass and is becoming more popular in homes. Spray foam is installed by spraying a polyurethane foam into walls and ceilings. The foam expands to create an airtight seal. Spray foam can be used as the primary method of insulation or as a supplement to existing insulation.

Pros of Spray Foam

Since spray foam creates an airtight seal, it protects against pests, rodents, and mold, in addition to its insulating properties. It is more energy-efficient than fiberglass, sealing off any crevices so air cannot leak in. It also has a longer lifespan, because it does not break down or sag over time.

Cons of Spray Foam

Spray foam is more expensive than fiberglass. In addition, spray foam should be applied by a professional, which increases the cost even more. The installation process can be messy, so make sure you work with a professional who has experience with spray foam.

If you are ready for new insulation, speak with your contractor to determine what type is the best option for your home. 

 

Website Built with WordPress.com.

Up ↑