6 Things Buyers Must Know When Buying New Homes in Carlsbad

By
Real Estate Agent with Solutions Real Estate CA DRE #01490977
https://activerain.com/droplet/52qT

6 Things Buyers Must Know About Buying

New Homes in Carlsbad

 

Some Carlsbad home buyers are interested in new construction homes, and there are several options right now. Indeed, we have seen a fair amount of new homes being built in several communities over the last few years, with more to come, although large parcels of land for development are running short.

 

There's lots to know about how to buy a home in Carlsbad, and some pretty important  things to know about new construction that may be news to you!

 

new home living room

 

That nice smiling sales rep you meet in the model home represents the builder, NOT you. They get paid for selling the builder’s homes and they are there to serve the builder’s interests, and not yours. Oh, they are friendly and pleasant, and are reasonably knowledgeable about what the homes offer, and the community, but as far as issues that you should be concerned about – inspectional issues, contract terms and conditions, among others – they are working for the seller. Can you have your own representative? You bet, and you should. Do you know what questions to ask about disclosures? Do you know how any defects or repairs that might be needed will be handled? What are the warranties that come with the house? The list goes on, just as it does when buying a resale home.

 

HOA feesThere will be an Home Owner’s Association. You cannot buy a new construction home in Carlsbad and avoid having an HOA, unless you are buying a stand-alone custom-built home, which is very rare. That might be fine with you, but some buyers don’t want or like them, so be aware. It's important to review any HOA documents, as with any resale. You will also want to know how much the HOA fees are and what they cover. Be aware that the fees can sometimes change as the community becomes fully built – the good news is they MIGHT drop off a little.

 

That new home does NOT come with beautiful front yard and back yard landscaping. Sorry, but the model homes have gorgeous plantings and grass, hardscape, and perhaps outdoor kitchens, spas, and more, but your new home comes with dirt! And you are required to have it landscaped, typically within a year, sometimes less depending on community requirements, and that is more cash from your pocket. Plus you will need to provide a plan to the architectural committee for approval up front.  Just sayin’.

 

Outdoor kitchen and pool

 

There will be Mello Roos fees (a special type of property tax) on top of the property taxes. Some buyers don’t like the idea of paying these fees but in new communities you have no choice. Right now the combination of property taxes and Mello Roos fees is around 1.3% in Carlsbad. It’s an important question to ask, as in any resale, so you are prepared for the financial burden.

 

What you see is not exactly what you get. This is not to say the builder is misrepresenting things, but that gorgeous model home to die for will likely be very different from what your new home will look like inside. There are some things that are options that are included, and you may have choices (e.g., cabinets, flooring) but often the model is full of upgrades (flooring, finishes, amenities like a wine cooler) that are not included in the base price. Be careful what you fall in love with - is it the style and layout, or is it all the eye candy!! Yes, you can choose hardwood over carpet, tile over vinyl, but you will pay for it. You absolutely want to know what’s really included in the purchase and what’s extra. Don’t make any assumptions.

 

Custom wine rack

 

The builder may offer financial incentives for using their preferred lender. Sounds good, right? It may be a good situation, but you want 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.

 

Does this mean buying a new home is not a good thing? Absolutely not. It’s just a matter of being a savvy and aware consumer, walking in to buy, hopefully with your Realtor, and being prepared to ask lots of questions and do your due diligence as you would with any home purchase. Who wants to leave money on the table or pay for things you didn’t know about?

 

And unlike a resale, you will not be negotiating the price!!

 

Search for Carlsbad homes for saleIf 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 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 click on the photo to the right to see all the homes on the MLS, updated 24/7.

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Debe Maxwell, CRS 04/23/2018 08:47 PM
Topic:
Home Buying
Location:
California San Diego County Carlsbad
Groups:
CALIFORNIA REAL ESTATE
Local Expert
Buyer Information - What Buyers Need to Know in Today's Market
Advice for Buyers
HyperLocal Neighborhood and Community Posts
Tags:
carlsbad real estate
how to buy a house
how to buy a home
new homes in carlsbad
jeff dowler crs
southern california relocation dude
how to buy new construction homes

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,433,949
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Jeff, excellent post on buying new construction. It's very easy to fall in love with the model home that's professionally staged and filled with upgrades but that's not what a typical home will look like. Having an agent to represent the buyer is a must, many don't see the reason as they see that extremely friendly salesperson in the model home as their own representative. 

Mar 21, 2017 12:49 PM #1
Ambassador
2,695,100
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Jeff - Excellent advice. Most of these items can be a big surprise to buyers - and a potentially expensive one. It's always best to have an experienced agent like yourself to guide buyers though the process.

Mar 21, 2017 01:11 PM #2
Ambassador
3,613,423
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jeff new construction is different out there than it is here.  We can still purchase new construction out here without an HOA, and I have never heard of  Mello Roos fees

Mar 21, 2017 03:10 PM #3
Ambassador
3,775,858
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Beth Atalay  

It is so true! But of course that's why builders have model homes dressed to the nines, to entice buyers. Nothing wrong with that, they just need to be aware of these issues. Representation is key I believe!

Jeff

Mar 21, 2017 03:51 PM #4
Rainmaker
874,491
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Great points Jeff Dowler especially the staging and lender incentives. Boy, the staged version of the model is a lofty location compared to the white walls of the basic model sans staging and landscaping. We're seeing that at Civita in Mission Valley. The lender perks are tempting, but great advice on doing the math!

Mar 21, 2017 10:46 PM #5
Rainmaker
2,965,708
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

New construction can be a challenge to navigate that homebuyers are not aware of...that model ahs upgrades...and that is not a part of the base price...which has some sticker shock when added to the base price...the lot...the landscaping...hardscaping.

Mar 22, 2017 01:49 AM #6
Rainmaker
3,040,711
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi Jeff -- you offer some very wise words for those looking for new construction in your area where fortunately you have some options.   Having knowledgeable representation like you in Carlsbad makes a lot of sense for those thinking about a move.   It's not just about the pretty model homes and the friendly person in the sales office.  

Mar 22, 2017 08:39 AM #7
Ambassador
3,775,858
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

George Souto  - no HOA is a custom-built stand-alone home but any community or subdivision will have them. And the Mello Roos are a special type of property tax.

It's a real eye opener to see a model and then to a home well along in construction and how different it looks. Buyers have to be prepared for a drmatically different look Thomas J. Nelson, Realtor, CRS 

Jeff

Mar 22, 2017 02:00 PM #8
Ambassador
3,775,858
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Yep those costs of upgrades to the standard stuff can really max out the budget if you aren't careful, and each builder is different in terms of options and such thay they provide Sally K. & David L. Hanson . And once certain things are ordered for a home under construction it may be too late (e.g., cabinets, counters, flooring).

Jeff

Mar 22, 2017 02:02 PM #9
Ambassador
3,775,858
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Thanks Dick Greenberg 

Buyers simply are not aware, unless they have purchased new builds before, and don't know the questions to ask! Upgrades and landscaping can get real expensive!

Jeff

Mar 22, 2017 02:05 PM #10
Ambassador
3,775,858
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Michael Jacobs 

Thanks so much. Buying new construction is a bit more complicated than buyers sometimes realize, and they often don't know what they don't know.

Jeff

Mar 22, 2017 02:16 PM #11
Ambassador
2,881,860
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Jeff, I don't know how I missed this but, what a great post - and it applies to new construction buyers all across the nation! Thanks for sharing!

Apr 23, 2018 08:23 PM #12
Rainmaker
3,631,378
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Jeff Dowler, CRS ,

I'm so glad that Debe Maxwell, CRS re-blogged your post because I missed this one too! Every state is so different with fees and business practices. We do not have an excise fee or a Mello Roose fee. 70-78% of new construction homes are sold by Realtors® so the builders love us and give us the best deals for our buyers. Excellent post! Thank you for sharing the particulars in buying new construction in Carlsbad.

Apr 24, 2018 05:53 AM #13
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
3,775,858

Jeff Dowler, CRS

The Southern California Relocation Dude
What's my Carlsbad CA Area Home Worth??
*
*
*
*
Spam prevention

Additional Information