Hunting for Housing

You walk into a new construction community and you are immediately overwhelmed with excitement and possibility. You explore the community and everything checks out. The house is exactly what you’ve wanted, the curb appeal is charming, and the smiling salesperson is so friendly. Everything just seems right.

Here are the top 10 reasons to buy new construction:

1) CUSTOM DESIGN

As a Realtor, I show a lot of homes to potential buyers. Even when the buyer absolutely loves the home, there is always something that they would change. They may not like the color of the carpet, backsplash, or walls. I always tell my clients, don’t throw good money at bad design.

When you build a new home, you can build it the way that you want it. This is probably the most attractive reason to buy a new home.

2) FUNCTIONAL FLOORPLANS

When I show homes to people, sometimes they have very specific requirements. However, over time, I’ve learned that their specific requirements are actually very common. For instance, when I help buyers that are downsizing, all of them one a single story. When I help growing families, many of them want a bedroom on the first floor, in order to take care of an aging parent. I’ve also noticed that parents with small children always want at least one bathtub in the home (and preferably on the same level as the majority of the bedrooms). And everyone who cooks, wants an open kitchen where they can be with their friends and family while taking care of meals.

When buying new construction, you can make all of this possible. If you want a main level master bedroom, with a fireplace, and a his and hers walk-in closet… You can have it!

3) HOME WARRANTIES

When you buy a resale home, things do break down. When you buy a new home, not only is everything brand new, it’s all under warranty. (The state of Idaho requires contractors to carry a 1 year warranty on new construction homes). So you have peace of mind and low maintenance fees.

4) ENERGY EFFICIENCY

Homes built these days are constructed with energy bills in mind. Many of them are built with Energy Star products, double pained windows, and spray foam insulation. All of these will save you thousands in utility bills down the road. (Hello Nest thermostat!)

5) HIGHER INDOOR AIR QUALITY

Homes built today must meet stringent ventilation requirements. So they end up being more energy efficient, but also safer. The indoor air quality is much higher, so the production of airborne allergens is lower.

6) BETTER TECHNOLOGY

Today, homes are built with the most cutting-edge technology around. This includes in the home as well as even in the walls of the home! Better technology means more precise measurements and architecture — both of which contribute to less maintenance down the road. Better technology can also benefit you by providing better finishes, smarter appliances, floors and countertops that won’t scratch!

7) COMMUNITY AMENITIES

If you’re looking at a home in a community, some new home communities have lots of amenities to offer. They include everything from playgrounds to pools. New homes also tend to include Homeowner’s Associations (HOA’s) — And although some of these associations come at a monthly fee, you can ensure that your community stays beautiful for years to come and that your home’s value stays on the rise. (Click here to read 7 Ways To Tell If You’re Buying A Home In A Good Homeowner’s Association).

8) INCREASED SAFETY

A new home community is often gated, but safety features come with the house as well. For instance, many new homes come readily equipped with (or are wired for) alarm systems. They also have infrared garage door openers that stop when a tricycle is nearby. Some new homes also have state of the art air coolants, which means higher air quality for your family.

9) AVAILABLE INVENTORY

We are experiencing a shortage of homes right now. People are living longer and downsizing buyers are opting for aging in place solutions. This means that millennials and first time home buyers have fewer choices when it comes to buying a home. Buying a new home in Southeast Idaho offers a viable solution to our housing problem — especially because we have lots of land available to build on still and home prices are still affordable. You sometimes have to be patient when looking for those lots, but they’re available, I can help you find them!

10) THE NEW HOME FEEL

One of the most attractive features of buying a new home is that it’s yours, and only yours. No one else has lived there before you, cooked on your stove, or slept in your bedroom. Understandably, that new home feel appeals to a lot of people!

WHAT IS A REALTOR’S ROLE WHEN YOU’RE BUYING NEW CONSTRUCTION FROM A BUILDER?

A buyer’s agent’s primary responsibility is to protect the buyer’s interests. Contrarily, a builder representative’s primary responsibility is to protect the builder’s interests. You can immediately start to see how these two responsibilities are diametrically opposed. There’s no way that the builder (or his representative) can represent you and the builder simultaneously.

Will they make sure to negotiate a deal where everyone wins? Sure. Will they abide by all of the laws and ethically during the home buying process? Most of the time, yes. But that doesn’t mean that they will fight on your behalf to protect you. It’s impossible as long as they are wearing the builder’s name tag and cashing the builder’s paychecks. It’s not personal, it’s just business.

WHAT ARE THE ADVANTAGES OF USING A REALTOR WHEN BUYING A NEW HOME FROM A BUILDER?

First, there is absolutely no cost to you whatsoever when you use a Realtor, so this is the primary advantage of using one. This is because the Realtor is paid a finder’s fee whenever the Realtor successfully introduces and matches a buyer with a new home. This finder’s fee is a commission that most builders will gladly pay because the Realtor found a buyer for one of their homes. Since there is no cost to the buyer at all, it would only make sense that you use a Realtor during the new home purchase.

Second, the Realtor will make sure that all of your interests are protected. The Realtor will do a market analysis on the home to make sure that you are not overpaying for the area. By the time you add on all the upgrades, you could be the highest priced home in the community and that is never a benefit when you need to sell the home down the road. Either way-it’s at the very least, a good thing to know!

Third, the Realtor also knows the area and can tell you if you if there are pitfalls coming down the road. For instance:

1. Is the builder also planning to build a mall as an attraction across the street?
2. Is the density of the housing to high, which has a significant impact on the demographics of the community?
3. Are there Homeowner Associations (HOA) fees?
4. What are the Covenants, Conditions, and Restrictions (CC&Rs’)?
5. Are there special assessment taxes — to build new parks, schools, and roads — that the builder is now passing on to you.  (Think of the City of Ammon’s Fiber Optic plan) . They will either absorb them or pass them on. Which scenario do you think happens more often?

Fourth, the real estate agent will guide you through the processes — such as the contract, the construction, inspections, the final walkthrough, and closing. The agent will be able to help you when things go awry, and it’s construction, so they often do. Unfortunately, many of the builder sales representatives are not licensed agents, so when something goes wrong, you are literally subjected to the builder and have no one on your side to protect you, advocate for you, or advise you. Since real estate agents help people buy and sell homes every day, they can foresee and protect you from these situations even before they arise.

Hope these tips help! Did you buy a new construction home?

HOA NEIGHBORHOODS

Buying a home could mean dealing with a homeowners’ association. HOA’s manage, maintain, and regulate everything that is outside of the home — such as the structure of the building, the common areas, the landscaping, and the any community areas (like a swimming pool or clubhouse, etc).

The Homeowners pay for these services in the form of monthly HOA fees. Payment and membership of the HOA is usually mandatory for as long as you own a home in the subdivision. But unlike the membership of other community organizations, you can’t resign if you’re unhappy with the way the organization is run.

This begs the question, how can you tell if the HOA is doing a good job? If your HOA displays these seven characteristics, it probably makes the grade…

1) CLEAR GOALS AND VISION

Some HOA leaders believe that their only job is to maintain the community facilities. And for some communities, this may be an adequate goal. However, some homeowners look to the HOA to enhance the value of their homes, and therefore want clearer, more aspirational goals — which could really make a difference in the value and visual appeal of the community.

So ask the HOA board a few pertinent questions:

• Do they think the community facilities should be limited to what already exists, or are they making a conscious effort to improve and upgrade them?
• Do they hold homeowners to high standards regarding the use and appearance of their private property, or do they let violations pass?

If you’re a homebuyer, buying into a community whose HOA matches your own ideals and aspirations will save a lot of headaches down the road.

2) CLEAR HOUSE RULES

The Covenants, Conditions, and Restrictions (CC&R’s) set out everything a homeowner can and cannot do within that community. Unfortunately, CC&R’s are useless if the HOA board interprets the rules loosely or enforces them in a haphazard way.

The best boards run structured, business-like meetings that give transparency to every decision the board makes. If the board has and uses House rules, there’s a fairly good chance that the CC&R will be applied objectively and fairly throughout the community.

It may be good to also know if there is a Building Committee, and who runs that committee. Typically the building committee is appointed to approve any new structures being built within the community (think shops/sheds), and what rules or CCR’s are the biggest no-no’s for new structures to be approved.

3) GOOD PROCEDURES FOR SAFEGUARDING MONEY

Homeowners’ associations are at high risk when it comes to losing their money. There are two reasons for this:

1. HOA’s are volunteer organizations that may not receive financial training, and
2. HOA’s usually have large sums of money in their bank accounts

The best HOA’s put checks and balances in place to safeguard against the risk of financial mismanagement. They employ a second set of eyes – someone not on the board – to collect the dues, pay the bills, and review checks and invoices to make sure the HOAs financial affairs are in good order. Often the second pair of eyes is a professional property manager.

4) FUNDS SET ASIDE FOR A RAINY DAY

Nothing creates greater conflict in a community than a large special assessment. Who wants to be hit with an unexpected bill for several thousand dollars because the clubhouse roof has fallen in? A well-run HOA commissions ongoing reserve studies to identify how much money is needed to meet repair and replacement costs over the long-term. A sufficient amount should be set aside from periodic dues to meet these repair costs when they arise. Ask to see the reserve studies and read the HOA’s financial statements. By comparing the reserve fund with the amount recommended in the reserve study, you can tell whether the HOA has enough money set aside for major repairs.

5) HOMEOWNERS CAN CHALLENGE POLICY

HOAs are responsible for drafting the CC&R document and the various policies that govern the community. If those policies are severe, homeowners may be in for a rough ride. Check that the HOA has a forum for hearing homeowner complaints and a history of acting on the wishes of the majority of homeowners. The HOA’s governing documents should also allow for the removal of a renegade board member, usually by board or community vote.

6) GOOD COMMUNICATION

This is your community and you have every right to know what’s going on in it. Do your research. Figure out how the HOA board communicates with homeowners. The options are numerous and include newsletters, websites, annual reports and e-mails. Check for flyers advertising community meetings. If homeowners are invited to attend committee meetings, it’s a good sign that their input is heard and valued. Better yet-volunteer to be on the committee when the openings arise. Good communities are ones filled with good people that can operate with the best interests of the neighborhood in mind.

7) THE COMMUNITY LOOKS GOOD

If the community looks good, it usually means that something positive has impacted the community. Of course, the opposite is also true. If you’re thinking about buying into a community, take an objective look at its appearance. Is the structure of the building in good repair? Are the trees pruned, the beds weeded and the landscaping well maintained? Is the pool clean? Are any of the homes in the community eyesores? Your answers to these questions reflect on whether the HOA is performing its duties properly and requiring homeowners to do the same. The proof, as they say, is in the pudding.

Do you live in a neighborhood with a HOA? What do you love about it? What do you hate about it?