Are you interested in buying new construction in Carlsbad instead of a resale? If so, there are 6 key things to know!!
THE BUILDER SALE REP REPRESENTS THE BUILDER, NOT YOU
Don’t be mislead that the sales rep at the model home works for you and will look out for your best interests! He or she works for the builder – they get paid for selling the builder’s homes and they are there to serve the builder’s interests, not yours. Can you have your own representative? You bet, and you should. Do you know what questions to ask about disclosures, how defects or repairs that might be needed will be handled,and what warranties come with the house? Do you want a home inspection (you should!)?
THERE WILL BE A HOME OWNERS ASSOCIATION (HOA)
You can’t buy a new home in Carlsbad and avoid having an HOA, so if that’s a problem be aware. As with ANY purchase in an HOA you will (1) want to review any HOA documents; (2) want to know how much the HOA fees are and what they cover.
YOU DON’T GET FRONT AND BACKYARD LANDSCAPING
Sorry, but while the model homes have gorgeous plantings and grass, hard-scape, and perhaps outdoor kitchens, spas, and more your new home comes with dirt! Know that the community will require that you get approval for your landscaping and have the work done, typically within a year, sometimes less depending on community requirements.
YOU WILL PAY MELLO ROOS
Yes, in today’s market there will be Mello Roos fees in addition to the property taxes. Right now the combination of property taxes and Mello Roos fees is around 1.3% in Carlsbad. Ask so you understand the financial burden.
WHAT YOU SEE IS NOT WHAT YOU GET
I’m NOT implying the builder is misrepresenting things to consumers. But you should know that the gorgeous model home will likely be very different from what your new home will look like inside. Oh, there will be options available (ask what’s included and what’s not), and you can select a number of upgrades (at more cost than the base price). But you will find the model is full of upgrades (flooring, finishes, amenities like a wine cooler) that are not included in the base price. It’s important to fall in love with the style and layout of the home, NOT the eye candy (although you will have some great ideas, perhaps).
BUILDER MAY OFFER FINANCIAL INCENTIVES
These may be available to you IF you use their preferred lender. Sounds good, right? Maybe. It’s essential, in my opinion, to do your due diligence to understand what your own lender’s fees are, among other things, as compared to what the preferred lender offers, despite the incentives. Will you pay more interest, for example, suing the lender’s suggested by the builder?
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None of this is intended to scare you away from buying new construction, but to help you be as informed as possible going in.
I strongly suggest that buyers of new builds work with a Realtor who is there to represent them, and that person should be there AT THE FIRST VISIT to the community to look out for your best interests, and not the builder’s!
If I can answer any questions about the Carlsbad housing market, or assist you with a purchase of a new home, or a resale, let’s get together and plan a strategy. Give me a call at (760) 840-1360 or email me at JeffDowlerSolutions@gmail.com and we find a time that works best for you!
And if a resale home is still of interest, or you are on the fence about a resale vs. a new construction home in Carlsbad, you can start your Carlsbad home search here. Then let me know what you would like to tour and we’ll make it happen for you!