Questions To Ask A Builder Prior To Making An Offer On A New Construction Home

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Here are five questions to ask the new construction home builder before making an offer on a new construction home.

 

1. Is there a Mello-Roos or Special Assessment?

               Mello-Roos and Special Assessments are extra taxes imposed on a specific community on top of your usual ad valorem tax (1% in California). You need to know if the community you are interested in have Mello-Roos or Special Assessment taxes prior to making an offer on a new construction home because this may greatly affect your estimated monthly payment. Some communities in California has 2% tax rate, some have 1.5%. To eliminate the guessing game, just ask the sales person and make sure your lender ran the numbers on the correct tax rate so you have a better understanding of what your payment would look like.

 

2. Is there an HOA?

               Always ask if there is an HOA because although it is not usually a part of your mortgage payment, it is typically a monthly payment associated with owning your home. You want to ask how much it is and what does it cover? A community in Lake Elsinore has over $200 in monthly HOA fee that only covers the basic maintenance of a basin. Some homebuyers are fine with it, others are not. Knowing what amenities are covered by the HOA will also help you make an informed decision of whether you want to buy a new construction home in a specific community or not.

 

3. What features are standard and what are option/upgrades?

               Most model homes are loaded with upgrades. The goal of the model homes is to allow you as a home buyer to envision what you can do with the place. You do not need to get all of the upgrades but should you want to, it is nice to know what your options are. Having said that, you also need to know what standard features are included with the sale of the home. Remember, you are paying taxes on the final purchase price. 

Here is a tip. Any structural, electrical, plumbing items, do it right away. All the cosmetic upgrades such as backsplash or crown molding, do it after. The more upgrades you add, the higher your final purchase price will be, the higher the taxes you pay. If you do not care and you have the money, then by all means, go crazy.

 

4. For a floor plan not modeled, can I tour a home with the same floor plan built for another customer?

               Not all floor plans are modeled. If there is a particular floor plan you are interested in, but is not modeled, ask the sales agent if there is already one being built for another customer. Most sales agent will allow you to tour it because they do understand that for most home buyers, it is easier to see a finished home rather than a blue print.

 

 

5. What is your process for inspections throughout construction, final walk-through, and to address any matters that need to be corrected or finalized?

               You want to learn as much as you can about the process prior to making an offer. You want to know what you are allowed or not allowed to do as your home is being built. You need to know how long it takes to build your home so you can plan accordingly. You want to know who will be overseeing the construction of your home, and who you need to reach out to with matters that need to be corrected, fixed or finalized. Make sure you have those contact information. This is especially important if you are a first time home buyer. You need to know what is covered in the final walk through. Ask if there is anything else you need to know. Essentially, you are asking for the new construction home buying process. 

 Here is another tip: Hire an outside Realtor, someone who has experience with new construction, someone who knows what they are doing. The builders usually have budget set aside for outside agents who bring clients to their community to pay for their commission so you do not have to. It’s always nice to have someone in your corner.

 

These five reasonable questions are questions you should ask prior to buying a new construction home to avoid surprises along the way. It is such a huge investment for you to not know anything about the process. 


Note: Angela Carpio is a Realtor serving Riverside, San Diego and Orange County.


Angela Carpio, Realtor

619-228-5034

Coldwell Banker ABR

Lic. #01967762

AngelaCarpioRealtor@gmail.com

http://www.angelacarpiorealtor.com/

#angelacarpiorealtor


 

 


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