New Home Construction

Remember: ALWAYS take your trusted Realtor when you visit any new home builder. Your Realtor has knowledge and insight that the builders sales representatives share with them which they do not usually extend to the buyers alone. Fact. These are corporate incentives which the buyers may not learn about.  Most importantly, your Realtor is able to negotiate and advocate in the buyers behalf before, during, and even after the purchase of the home. DON'T GO IT ALONE! Call Michael and plan to visit the new home builders together. You'll be so glad you did!
 Your Source for New Home Construction throughout Florida
 
 
If you are considering a real estate purchase in Florida, there are many reasons to seriously consider buying a brand new home instead of a resale home. To help you better understand the advantages of new home buying, U.S. News spoke with a handful of experts and compiled a list of nine reasons to choose a new home over a resale:
 
1. Customization: Many home builders allow buyers to participate in the process of designing their property, which helps create a living space specifically tailored to the consumer's tastes. This is an exciting time for buyers who love the opportunity to "have it your way". New home buyers, for example, can often decide where their bathroom might go, choose their favorite type of flooring, or pick the color of the exterior paint. Buyers moving into a subdivision can sometimes even pick the lot they like best. "There is a lot of flexibility for new home buyers to kind of put their personal signature on the product," says Patrick Costello, president of Forty West Builders. "Those kind of things you can't do with a used house—it's just not possible."
 
2. Building envelope: Building codes have mandated increasingly higher energy efficiency standards since they began to address the issue in the late 1970s, says Kevin Morrow, senior program manager for the National Association of Home Builders' green building programs. "The most recent International Energy Conservation Code came out in 2009 and required roughly 17 percent more efficiency than the codes of three years prior," he says. "So using that as sort of a gauge to how newer homes should perform from an efficiency standpoint compared to older homes, it's pretty clear that just as homes meet code, they are going to be more efficient."
 
Newly constructed homes use energy more efficiently in two ways, Morrow says. First, they tend to have a tighter-sealed building envelope that helps prevent conditioned air—cool air in the summer, warm air in the winter—from escaping. Features that create this envelope include higher-efficiency insulation, doors, and windows. "Gone are the days of the single-pane window … now I think you are starting to see triple- and quadruple-paned windows," Morrow says. "These are windows that are designed to really minimize the transfer of heat either from warm to cold or vice versa, and they of course will help the building envelope."
 
 
3. Green appliances: The more energy-efficient mechanics of the house also help reduce utility bills for new home buyers, Morrow says. Newly-constructed homes often include green systems and appliances—like high efficiency stoves, refrigerators, washing machines, water heaters, furnaces, or air conditioning units—that homes built years ago might not. "The conditioning equipment is usually considered to be one of the larger energy consumption devices, but certainly those kitchen appliances matter," Morrow says. Existing homeowners can always retrofit their property or buy higher-efficiency appliances, but doing so requires a potentially significant expense.
 
4. Fewer repairs: The features of newly constructed homes should also hold up better than those of existing homes, which may have experienced years of wear and tear, says Evan Gilligan of Mandrin Homes. "People will buy previously-owned houses and then the carpet needs to be replaced or it needs to be repainted, or it needs new appliances, or the flooring is shot," Gilligan says. "When they buy a new home in today's market, it really is new."
 
 
5. Less maintenance: At the same time, today's new homes are engineered specifically to minimize maintenance requirements. For example, Costello says his company uses composite products for a home's exterior trim instead of wood, which could rot or need repainting. "You buy a used house you don't know what you are getting, you might have to do a lot of maintenance," Costello says. "We are trying to look down the road and make things as easy as possible for the homeowner so they can enjoy living there and not have to be saddled with maintenance."
 
6. Warranty: In addition, builders often agree to take care of the repair work that becomes necessary in your newly constructed home for at least the first year. "A new home is generally fully warrantied by the builder for a minimum of a year and most of all the other components are warrantied for extended periods," says Jack McCabe. So if your roof starts leaking or the heater breaks during the warranty period, your builder will pick up the tab for the repairs. "When you buy a resale home, even if you have a home inspection done, it still does not turn up hidden defects that you don't find out about a lot of times for two years," McCabe says.
 
7. Fire safety: Newly constructed homes often include fire safety features that may not be present in properties built years ago, Gilligan says. "We use fire retardant in our carpeting and in our insulation," he says. In addition, all newly constructed homes are required to include hard-wired smoke detectors. These devices can provide better protection than battery-operated smoke detectors, which can fail to perform if their battery runs out, Morrow says. "Hard-wired smoke detectors run on the electricity of the house and then have a battery backup for if the house power goes out," he says.
 
 
8. Concessions: Especially in today's sluggish housing market, buyers may be able to squeeze more concessions out of a home building company than an individual seller. That's because individual sellers often have an emotional attachment to their property that can blind them to its true value. "People usually think that their home is worth more money than it is," McCabe says. At the same time, builders often have greater financial wherewithal to absorb a loss on a sale than individuals. "I'll put it to you this way: a $30,000 hit spread over 30 lots hurts a lot less than a $30,000 hit on one existing house," says Christopher Rachuba of Rachuba Home Builders. "So I think buyers may get more bargaining power that way."
 

9. Financing: New home buyers may be able to take advantage of mortgage financing perks made available through their builder. "New home builders, in many cases the larger ones, have their own mortgage companies or they will offer paying points or closing costs and buy down certain rates for you," McCabe says. "The seller of a resale home is generally not going to do that for the buyer."

So there you have it. This is Michael Johnson, as you can see there are many advantages so please let me guide you toward the perfect new home if that is how you are leaning. No matter if it's new homes near Kissimmee FL or in Orlando Florida, one of the major disadvantages of purchasing a new home is in the lot size. So if you feel you would like more yard space, that your best bet is to continue looking at resales. Also if you want a swimming pool included for that same price, once again the resale home market is where you should probably stay.

New Home Construction

New Home Information for Investors

Why Invest in Pre-Construction?

The answer is simple, to make a return on your investment. However, there are a variety of factors that will determine your return.

1) Your purchase price. Generally, the earlier you purchase during the construction phase, the lower your cost and buyer's incentives will be.

2) Developer Price Increases. Many developers sell their projects in phases and will raise prices as the project moves forward. It is not uncommon for a person who bought in phase 1 of a project to pay considerably less than a person who bought in a later phase. Many developers also raise prices to control the demand and supply ratio.

3) General Economics. The law of economics states that prices increase when there is more demand then supply and visa versa. Lack of suitable land to build on and a dramatically increasing population are both catalysts for price increases.

4) Lack Of Carrying Costs. Aside from the down payment required when an investor goes to contract, there is no other out of pocket expenses (Taxes, Mortgage, Maintenance and Insurance) until the buyer's actual Closing Date, otherwise known as the Settlement. Therefore, an investor can experience and take advantage of the increasing price potential and not pay a dime to carry the property until after closing!

How does the Pre-Construction process work?

There are a series of steps in purchasing a pre construction property.

  • 1- The investor must first sign a reservation agreement and then put down a deposit. (This amount varies depending on the developer. Typically a minimum of $5,000 USD)

  • 2- Once a developer gets the go ahead from the local government, you will be asked to enter into a contract. After a short period of time (the rescission period) the contract becomes (hard). Usually at contract the developer requires a down payment on your property that is being built. This can range from $5,000 to 20% of the total purchase price of your unit. The deposit is normally held in an escrow account and cannot be touched by the developer unless stated in the contract.

  • 3- Certain developers allow investors to assign their contract to another purchaser. Yet others do not allow assignments at all. Many developers offer resale programs that allow investors to sell their property to another individual. If the property is not sold, prior to its completion, the investor must close on the property and then can choose to sell it, rent it or use it for themselves. Be sure to use our expertise in this type of purchase.