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What Are CC&R's?The transfer deeds to houses in new developments almost always include limitations on how the property can be used. Usually these limitations -- called covenants, conditions, and restrictions (CC&Rs) -- put decision-making rights into the hands of the homeowners' association.
What Are HOA's?An HOA (Home Owners Association) is an association formed by the homeowners in a given area for the purpose of maintaining and improving the property. Many condominium complexes, gated communities, and greenbelt locations require monthly Homeowner's Association fees which are used for the purpose of area maintenance and improvements.
What Is Mello-Roos?A Mello-Roos city or district is an area where a special tax is placed on the homeowners within a Community Facilities District (CFD). This district chooses to seek public financing thought the sale of bonds for the purpose of financing certain public improvements and services. These services may include streets, water, sewage, schools, parks, and police protection to newly developing areas. The tax you pay is used to make the payments of principal and interest on the bonds.
Will My Brand New Home Come With A Warranty?Typically, the builder will provide a warranty on their home for at least a year. This generally will cover all aspects of your new home. In addition to the builder's warranty, you will receive the manufacture's warranty on the larger items such as the roof, appliances, and HVAC unit. The terms and lengths of these warranties may vary per builder, so always make sure to ask each builder specifically what is covered.
Will My Brand New Home Come With Window Coverings?Window coverings are not usually included in the base price of a home. However, most builders will offer them at an additional price. It is always a good idea to compare prices! Call a few companies to insure you are getting the best price.
Will My Brand New Home Come With Landscaping?Most builders include front yard landscaping in the base price of the home. Back yard landscaping is rarely included and is the responsibility of the new home owner. Many Builders require that the new home owner complete the back yard landscaping within a certain period of time. Make sure to ask the builder about these requirements.
Can I Choose My Own Lot?Depending on what stage the development is in, it is possible for you to choose the lot on which your new home will be on. Keep in mind that there will most likely be a 'lot premium' for particular lots. This premium is usually based on the size and location of the lot.
Will My Home Look Just Like The Model?Model homes are a beautiful example of what your home can potentially look like. Furnishings, window coverings, custom paint, appliances, and decor are obvious extras!
Can I Pick Out The Colors For Paint, Carpet, Tile, Etc'¦This depends on the stage of the construction process your home is in. If you're a part of it's early development, you will most likely be able to pick out these items. The builder will be able to give you specifics when you visit the community.
What Are Incentives?Incentives are offered by the builder to motivate homebuyers to purchase their homes. Typically a builder will offer a credit toward closing costs, or maybe a free upgrade on a particular home. When you visit a community, make sure to ask the sales associate if there are any incentives available.
Do I Have To Use the Builder's Financing?In-house financing is a great and easily accessible tool in helping you purchase your brand new home. Builders generally offer this to help make the buying process run smoother. There can be times where in-house financing is the only option available but it is safe to say that they are just as competitive as any other lender and even more determined to get you qualified. When outside-lending is available make sure to give both lenders a chance to make you an offer.
Can My Own Realtor Represent Me Though The Transaction?Yes. In fact, most builders offer a referral fee to the referring agent who brings there client to the builder. This fee is usually a predetermined percentage of the sale, paid by the builder.
What Is A Phase?Developers have a set number of homes to sell, and usually divide these homes into group release known as 'phases'. Each phase begins with a predetermined number of homes at set prices. After each set of homes are sold, a new 'phase' is released, typically at higher prices.
Do I Have To Place A Deposit?Generally all builders will require a deposit. The size of the deposit will vary depending on the builder. They typically range from $1,000 to 5% of the purchase price. They may or may not be refundable depending on the stage that the home is in. Make sure to understand the policy each builder has regarding deposits.
When Will My Home Be Ready?Home construction times can significantly vary depending on weather, available labor, permits, upgrades, and more. Builders have different schedules and approaches to home construction and it's best to discuss these issues directly with them. Generally builders will provide you with a detailed schedule of events, so you will know exactly what to expect and when.
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