New Construction: Is It For Me?
If you are out looking for a place to purchase, you have probably noticed that there are a number of new home communities looking for buyers. For many seasoned realtors this is a phenomenon that was much more rare 10 years ago. In my early days of selling real estate the only new construction in Mountain View was at the Old Mill site on Showers, or Silver Creek in South San Jose, and a little later Rivermark in Santa Clara. Now, there are many communities in Sunnyvale, Santa Clara, Mountain View, and even Palo Alto and Menlo Park as well as the numerous communities in San Jose.
Why? In the last 10 years developers were able to buy large plots of land and rezone them to planned unit developments. Earlier in the 21st century cities saw the need for more housing and were more willing to give developers variances. Also, as more and more manufacturing jobs have gone oversees old plant sites have become available. For example, KB has a new development in San Jose at the old Del Monte Canary site and has even kept the old Del Monte sign tower.
So while all that is mildly interesting what does it mean for you? The biggest issue is CHOICE. You have many choices right now and since a home purchase is probably the biggest financial decision you will make it is definitely to your benefit to make your choice wisely! (Shameless plug for me: I can help you make that choice intelligently by giving you the information you need to make an informed decision.)
So, here are the advantages of new construction:
- It's new and no one else has lived there.
- If you buy early enough you can choose a lot of the finishes like, floors, counters, and other finishes.
- Right now builders are anxious to sell and are giving generous upgrade packages and discounts on prices.
- The homes are up to date on codes and energy efficiency. The foundations are stronger, the windows are double- paned, the plumbing is copper, the wiring is grounded and can hold today's electronics, and there is insulation, all of which may or may not be true of an older re-sale home.
- Most new construction includes air-conditioning which not only is unusual in older homes, but prohibited in many town home and condo complexes.
- The HOA fees tend to be a little lower than older complexes many of which may have some deferred maintenance issues.
Here are some drawbacks to new construction:
1. Location: Many (although not all) new developments are in sites which are not the most desirable. They generally are not in the middle of an established residential neighborhood, but rather in an old industrial/commercial site. (New construction in Evergreen is an exception to this.)
2.Homes with such good energy efficiency can sometimes lead to mold growth because they are not well ventilated.
3.Many of the new homes, especially close to urban or transportation centers are town homes or condos, not single family homes. There are a few single family home developments, but the lots are tiny and homes are very close together. Condos and town homes are packed tightly into small spaces, and while they are landscaped, there are very few trees. There is little patio or yard space.
4.The time between purchase and move in can be anywhere from 2 months to 2 years, so you have to be flexible.
So, what is the best way to make an informed decision about whether a new home is right for you when there is so much to consider? It is a good idea to look at all of your options before making a decision. Most New developments will give a realtor a referral fee for bringing in a buyer, but if the buyer comes to the development first, then no referral will be paid. If you are working with a realtor, you should go to the developments with your realtor at least on the first visit. That way, your realtor (hopefully me!) will be able to be objective about what is in your best interest. If you are going to buy a home, it will not matter to the realtor which home you buy, and the advice can be more objective. If your realtor makes money if you buy one home but not another, it will be harder for your realtor to be objective. Your realtor can be very helpful in analyzing the future potential for appreciation or depreciation on the community, and the particular lot site you choose. We can also help negotiate price and upgrades.
I am very experienced in new home sales so if you have any questions please feel free to contact me:
Happy house hunting!!!!!!
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