All New Home Communities are not Created Equal

By
Real Estate Agent with Realty World Alliance
 

Three important aspects you need to look at when purchasing new construction are Specials, HOA, and Restrictive Covenants. These will vary in each New Home Community you look at.
These will have a direct impact on your monthly payment and life style.
Special Assessments pay for the improvements (streets, water, sewer, retention ponds, drainage sloughs, ect.) to a New Home Community. There are many variables that can cause Specials in some Communities to be higher than others and this will directly impact your monthly payments. Lower Specials will allow you to purchase more home or achieve a lower monthly payment. In regards to No Specials you should check if they have been added to the cost of the home site. Specials generally last for 15 or 20 years depending on the overall cost for improvements.
HOA (Home Owners Association) are normally in place to provide a source of income for the up keep of common areas (swimming pools, tennis courts, play ground areas, entry signs, retention ponds, ect). Not all Communities have HOA’s.
Restrictive Covenants are common in New Communities. Some areas are more restrictive than others so ask for a copy before purchasing to make sure they fit your lifestyle.
Ask questions, gather information, and remember knowledge is power.
 
 

Comments (2)

Connie Tebyani
Platinum Home Staging, Inc. : RESA-Pro - Calabasas, CA
Platinum Home Staging, Los Angeles and Ventura County

One thing you didn't elaborate enough on was Restrictive Covenants (also known in my areas as CC&Rs)  These Restrictive Covenants will limit what improvements can be done w/o getting prior plan approval from the HOA when upgrading your home and landscaping, such as: the color you can paint your home, what shrubbery you plan on incorporating into your landscape, hard-scaping, size & height restrictions on detached structures such as pergolas, etc.... 

Jan 16, 2009 07:39 AM
Denise Gray
Realty World Alliance - Wichita, KS
Realtor SRES, Wichita Kansas Homes

Connie: Good point. I'll do an edit on that later today.

Thanks

Jan 16, 2009 07:53 AM