New Homes Guide
for New Developments
Finding the right online listing source or real estate agent might seem like a difficult task...
Understanding New Home
Visit your builders sales office and ask to see all of the available home sites.
Information on Buying New Homes and Making a Good Decision
Buying your own home is an emotional journey that leads you to pick a place where you make memories, watch your children grow, and build a life. There are many things to think about; should you buy new construction? What about fixing something up and making it your own? There are many homes on the market and even more options when it comes to new construction and home sales. We have broken down some of the do’s and dont’s when it comes to new homes for sale in master planned communities and new construction.
New Homes for Sale in Master Planned Communities.
If you are looking to purchase a new home in a master planned community or looking at building your own custom home behind the gates, we are the ideal resource to navigate the purchase process. Our team at New Homes will assist in understanding the market, what to look for in a developer and builder and how to find the perfect mortgage and financing for your purchase.
New Home Master Plan Communities Are Better for Some Families
A master planned community commonly offers community areas and maintains a strong sense of family.
- Improved privacy and security: A tightly controlled environment offers a sense of privacy and security at a level that stand-alone residential developments rarely achieve. There is added security often provided by a gate or guard stand, but there is also a sense of commuity and knowing your neighbors that offer a added level of comfort.
- Ample amenities: Residents benefit from additional amenities that are usually at the centre of the community. Some upscale master planned communities offer restaurant, spa, golf courses, marinas, or private landing strips for the benefit of both residents and visitors.
- Quality infrastructure: Many master-planned communities offer improved infrastructure such as well-built drainage systems, water-treatment plants, underground cables, and quality roads. These features offer great convenience to property owners and allow them to remain somewhat independent from local government services.
- Ease of Maintenance: Not only is the home you are buying new construction and never been lived in, there is often a new home warranty that comes with the purchase. New appliances, new features and finishes and a developer warranty add a peace of mind to your new home.
- Customized: As the home is being built, many developers offer customizable finishes and upgrades. This will allow you to save money where you want to and also raise the quality standards where it matters to you most.
New Homes in this Real Estate Market
With the market downturn behind us, the real estate market has leveled out from its peaks and valleys over the last 5 years however, prices and sales are still fluctuating as we establish a new ‘normal’. We have seen increases in new homes sales with a decrease in price due to foreclosures and short sales, but on the bright side, new construction is balancing the market with strong sales numbers and solid pricing strategies.
With market conditions stabilizing and the real estate industry slowly recovering, experts are finally able to make assumptions and forecasts that customers can count on.
New Home Construction
Builders are enjoying the new market conditions that are allowing long-time home owners the opportunity to upsize into a new home that suits their needs with more modern features and new home warranties eliminating maintenance concerns. Communities that were left with empty lots and half built products are moving forward again and the landscape for new home builders is moving forward.
Given the experiences over the last 5 years, homeowners and developers have reason to be skeptical, but there is no reason to believe this will slow down. With new construction taking a front seat in the real estate market, builders are closely watching trends to ensure they are capitalizing on market demand with the perfect floor plans and community offerings for their customers. One of the trends with new home sales is the increase in size.
New Home Sizes are Larger
The standard size of a new home now surpasses the high levels hit during the housing boom. This is the hottest indication that the new-home marketplace is catering to older, more affluent buyers and less to more youthful and first-time buyers.
During the housing downturns, many home builders built smaller and less expensive homes in response to an era of frugality. People had less money and decreased access to lending. The good news for builders and developers is that has changed for upscale clients who are purchasing their second or third home. The first-time buyer now has to come up with “20% down payment and a pristine credit score, and that’s harder to do,” said Stephen Melman, director of economic services for the National Association of Home Builders.
Some builders say they are intentionally building bigger homes to warrant the higher prices they must charge to recover the increasing cost of land. Prices for finished lots increased 24% in the second quarter from a year earlier, according to housing-research firm Zelman & Associates. “If you pay top dollar for land, you need to build a bigger home on it to make money,” said John Burns, chief executive of a home-building consulting firm in Irvine, California.
Tips for Buying Your First Home
- Become an expert in the area. It is important to research and understand the selling prices of comparable homes in your area. Local MLS listings or online home listing search engines can give you a general idea of what you should expect to pay for a home in your area.
- Know what you can afford. The ideal price doesn’t always mean you can afford the home. Use an online mortgage calculator to see what your payment would be for the price you like. It is important to understand what the actual monthly payments will be for your dream home.
- But can you REALLY afford it? Now that you know your ideal monthly mortgage payment, you need to next check all the other homeowner costs. Don’t forget to budget for taxes and homeowners insurance. In some areas, what you’ll pay for your taxes and insurance escrow can almost double your mortgage payment. According to the Insurance Information Institute, the average yearly premium can range from $477 in Utah to $1,372 for unlucky Texans.
- Are you sure that’s EVERYTHING? First time homeowners don’t always know what is involved in paying for your first home. Not only are the extra monthly fees that owning a home costs, there are the additional up-front fees that are included when you purchase the home. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowner association fees.
- Stick to your budget. Know your budget and follow it. You might fall in love with your dream home, but going over budget might feel like small amount at the time, once the emotions wear off, you are left trying to make ends meet. Always look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Is your dream home going to push you past that? Think twice.
- Talk to reputable brokers and agents in the area you are looking to buy. Only the realtors who work in the area will know the inside scoop. What new homes are they seeing? What do they know about your neighbors? The area? Ask around, you don’t want to wish you did later.
- Remember to look at the big picture. While purchasing a house is a sensible way to build wealth, looking after your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there’s no landlord to turn to, and these costs can drain your savings.