When working with clients who are looking to own their new home, I want to make sure that they do not miss out on anything so I talk about new construction homes with them to see if it is something that they would consider. Here are 5 things you need to know when purchasing a new construction home.
Having your own real estate agent helps you.
Technically, you do not need to work with a real estate agent when purchasing a new construction home. Guess what? Builders pay the agent's commission. Not working with an agent DOES NOT give you discount on the purchase of your home anyway so not having someone on your corner is a disadvantage to you. Especially if you're a first time home buyer, you need someone objective and someone who knows that they're doing to guide you. Here's a warning. Do not just work with any real estate agent. Make sure they have experience so they know how to help you. I attend each and every appointment my clients have and even though ultimately, it is their decision, I remain the objective agent they need me to be and point out things that may or may not help them based on their wants, needs and whys.
You may be paying higher taxes.
With new housing construction comes new amenities, infrastructure and services. Depending on where your new construction home search takes you, you will likely pay the Mello-Roos tax. A Mello-Roos is a special tax assessment applied only to residents of the district that benefits from the project. It is an extra tax burden that you may or may not want to take on so be sure to do your research. I advise my clients right away if a community have Mello-Roos and they usually does. This way, no one's time is wasted and they know exactly what they're getting into.
There are some items you may be able to negotiate.
Builders maybe reluctant to drop the price of the new construction home but there are some other items you may be able to negotiate. Better home upgrades is one of them. Another one is closing cost when you work with their in house lender. That's why it is important to work with an agent who has experience working with new construction homes. You could potentially save thousands of dollars.
Everything needs to be in writing.
Just like when purchasing a pre-loved home, everything the sales consultant tells you need to be in writing. I don't mean in an email or a text message. Any negotiated upgrades or closing cost need to be part of the contract. This is where having your own real estate agent helps you. I once attended a contract signing for my clients where they forgot to include the $10,000 home gallery upgrades we asked for. Fortunately, I caught it so it was added on the contract.
Learn about the community.
Ask what features benefit the community. Ask about clubhouse, health and fitness center, community pool if they have one. Ask about the parks. If you have children, ask what school district does the property falls on so you can do your research on those schools. How close or far are you from the stores? What are their plans for the community and for the city? Think about what is important to you. Again, this is where having an agent can help you because your agent should stop and think about your wants and needs and how this property checks all those. I know that's what I do for my clients.
When you know what to do, what to expect and when you work with the right people, the right team, purchasing a new construction home, can be the right fit for you.
Find new construction homes in and around Inland Empire at:
If you or someone you know is looking to own, sell or invest in real estate in Canyon Lake - Menifee area and the surrounding cities, I'd love to help!
Angela Carpio, Realtor