The Bravery of Building a New Home
“We spend January 1st walking through our lives,
room by room, drawing up a list of work to be done,
cracks to be patched, maybe this year…”
– Albert Einstein
Building a new home, from the dirt up, is the bravest thing one can do in real estate. A new home not only will cost more than an existing property, it’s also much more complicated, with hundreds of decisions you must make. This is why it is a much smaller slice of the market.
Buying or selling an existing home is a part-time job. There are so many considerations to ponder: location, size, style, finishes, improvements needed, price and how you feel in it, just to mention a few. When you build, it’s not just the area and the view, it’s also the soil condition, the slope and the building envelop. When looking at the floor plan, it’s not just the layout; you must decide the ceiling height, the number and location of the windows, and how it will be sited on your lot, once you find it. For a small group of exceptional decision makers, this is exciting, and they are good at picking everything from doorknobs and driveway surface to the type of heating system.
Santa Fe has two major categories for new construction: mid-priced homes and luxury properties. Active, or homes for sale in the mid-price range are semi-custom, with large builders offering clients several floor plans to pick from and finish packages, which greatly simplifies the process. Some of these builders will let you move walls, make an addition or other changes. Other builders are very firm about the finishes offered, as they have already negotiated bulk purchases for cabinets, flooring, windows, etc. These builders typically build four to six to twelve homes at a time.
Pulte is the GIANT in the mid-priced, semi-custom home sector, with 175-200 residences annually. According to Joe Ortiz, Sales Manager for Pulte, the average price is the low $600,000’s, with upgrades averaging $35,000. We recently sold a home to a client in Dos Acequias who downsized from a large, northside estate home. She wanted quality and ease. The finish packages were very current, and the floor plans light-filled and elegant. Pulte homes take only about 8-10 months to complete, as they have already obtained permits, completed the designs, and have negotiated with vendors for all materials.
Currently there are nine homes scheduled to be completed in 2025 from $560,000 to $760,000, with an average per square foot size of 1,800 square feet, and a cost per square foot of $358. They take about a year from start to occupancy. (This number is not a reflection of the actual volume, as builders often only put the model home in the MLS.)
Luxury homes for sale, scheduled to close in 2025 range between $1.5 to $2.8 million. There are fourteen brave, custom builders creating “spec homes” they hope you will fall in love with. The average size is 2,800 square feet, with an average per square foot price of $763. We are a turn-key society, and most buyers appreciate having the lot and design started. Depending on the timing, these builders are happy to have you select finishes and are willing to customize.
Luxury builder, Mark Schwebel of Big Art Building has worked for design icon Martha Stewart. He is building a luxury, contemporary 4,400 square foot home. His homes take over two years to complete. This home will be priced at $3.25 million. Designing and building, or completing a luxury home is a full-time job, therefore having a reputable builder and an experienced realtor to guide you is critical. The satisfaction is that you get exactly what you want, and that is priceless.
NEW to Santa Fe and filling a void in the market between $750,000 and $1.2 million Lorn Tryk, builder and Designer Cara Scarola have just released information about a new community in Arroyo Hondo. Tryk built Los Miradores, Quail Run and many luxury homes. For more information go to: www.arroyohondodesantafe.com
The Santa Fe Area Home Builders Association is a great resource to learn more. Their membership includes builders, architects, plumbers, electricians, roofers and other associated tradespeople. There is a membership directory, events and educational meetings. The annual Parade of Homes is in August with an average of fifteen new homes to explore. I attend the tour annually to see what’s new in design and say hello to many of my favorite builders. Their new website is great: www.buildnewmexico.com
It's a new year and the market is steady! Be brave, consider a new build!
Emily Garcia,
Senior Advisor with RCT
Sotheby’s International Realty
