Pros & Cons of Buying a new home in Temecula
In this blog post, I’m going to talk about some of the pros and cons of buying a new home in Temecula. Times have changed drastically for home buyers and I thought it would be important to take my experience in selling new homes in the Temecula area and give you some information on the process to help you make the best decision possible. I have brainstormed some of the most important aspects I’m buying a new home and we’ll talk about them below.
Pros Of Buying A New Home
Most of these new home communities have beautiful amenities. Walking paths, pools, Lakes, basketball courts, meeting rooms, barbecue areas, hot tubs, saunas. you are pretty much buying into a resort in many of these new home communities in Southern California. If that is something that interests you, I suggest you search for new homes and keep them on your list.
If you want to check out a few pre-existing communities that have nice amenities, I have articles and videos here.
Open Floor Plans
One of the best things about buying a new home is the builders keep up with the trends. One of the things that builders are doing a great job of now is keeping an open floor plan. The (great rooms) as they used to call them are great. Open kitchens, high ceilings, and lots of windows make most of these new home builds perfect for entertaining and being around the family.
Warranty On Work
When you buy a pre-existing home you own it, the second it closes. If the AC breaks, the roof leaks, or the stucco cracks, you are responsible. One of the great things about a new home built in the Temecula area is that you’ll have a 1 to 2-year warranty. If anything happens, just call the builder and they will come to fix it. Some Builders are going to be better than others in the way of response time but it will get done.
One of the things that I would suggest for all new home buyers is getting a home inspection. You’d think this was pointless but often builders will miss something small like a cracked roof tile and you don’t notice it for years. If you have cracked roof tiles you won’t figure it out until someone has to go on the roof or you sell the home.
Rebates From The Builder’s Lender
Closing costs from the seller are a thing of the past in this market. If you do use the builder’s lender often they will give you a credit. Also, Get quotes from other lenders, the builder’s lender will usually match pricing or interest rate.
Cons of Buying a New Home in the Temecula Area
Taxes Are Going To Be Higher
All of those beautiful amenities, sidewalks, lights, swimming pools Etc have to be paid for somehow. tax rates on New home builds will be up around 2%. That’s a huge difference from an existing home that will be around 1.2% to 1.5%. These taxes are called special assessments or Mello-Roos taxes. Make sure that your lender understands tax rates in these new home developments. They will go towards your debt to income ratio and will lessen your buying power.
Another thing that you need to verify is the HOA and how much it is per month. Most new communities are going to have an HOA.
This is going to happen more and more throughout Southern California. Builders need to maximize their profits, the land just isn’t there to be building homes on 10,000 sqft lots anymore. Often, new home communities will have lots of sizes at 4,000 to 5000 square feet. If you’re looking for a large yard, have dogs, or want to put in a pool many times these new homes don’t have this access property to do many of the things you might want to do.
You, Will, Pay A Premium
In my experience, new home communities are going to be a little bit more expensive for the same house that is 5-6 years old. You also need to watch and be aware of builder upgrades. Many of the builder upgrades are just better done after the close by you. You will save money, doing it yourself or finding somebody else to do it. If you want to read a full article on new home upgrades, and which ones to do or not do click here
How Buying New Homes Has Changed?
Finally, I wanted to touch on the new home buying experience. often over the years when we were in a seller’s market, it was beneficial to buy a home through a builder. There weren’t bidding wars, it was fairly easy to get into a home and Byers didn’t feel like they were getting taken advantage of by the seller. All has changed. Last week I was showing home buyers New home builds. We talked to one of the builders and they are now doing auctions. Saturday mornings, buyers will line up on a certain lot. If you decide to make an offer, everybody goes into the office and puts down what offer or price they are willing to pay while releasing your appraisal contingency. Gone are the days where it was advantageous or less hassle to buy a new home.
Some Builders are even refusing to pay real estate agents. you might say to yourself, well it’s a new home I don’t need an agent. Let me tell you, from personal experience this is the farthest thing from the truth. Builders are not looking out for your best interest. I pay for a home inspection and make sure all repairs are done on the home before we close. I also give a great deal of information on location, upgrades, and everything detrimental or beneficial to you as a buyer during the process. There is no way a builder is going to tell you not to buy a property because of certain circumstances. Bottom line, if a builder is refusing to pay your real estate agent, you might want to rethink who you’re dealing with.
Before ending the article, I wanted to link to a website with an awesome new home search. They have all different builders and pretty much every single new home community in the area all in one place. Check it out here
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We are licensed as both Real Estate Brokers & a Certified Residential Appraiser. We love what we do and will bring a great deal of passion, experience and expertise to the table for you.