New Construction: Is it for me?

If you're out looking for a place to purchase, you've probably noticed that there are number of new home communities looking for buyers. For many seasoned realtors this phenomenon was rarer ten years ago---in my early days selling real estate, the only new construction in Mountain View was at the Old Mill site on Showers, or Silver Creek in south San Jose, or a little later Rivermark in Santa Clara. Now, there are many new communities in Sunnyvale, Santa Clara, Mountain View, San Jose, and even Palo Alto and Menlo Park. 

Why? In the last ten years developers were able to buy large plots of land and rezone them to planned unit developments. Earlier in the 21st century cities saw the need for more housing and were more willing to give developers variances. Also, as more and more manufacturing jobs have gone oversees old plant sites have become available. For example, KB has a new development in San Jose at the old Del Monte Canary site and has even kept the old Del Monte sign tower. 

So while it's all mildly interesting, what does this mean for you? The biggest issue is CHOICE.  You have many choices right now and since a home purchase is probably the biggest financial decision you will make it is definitely to your benefit to make your choice wisely! (Shameless plug for me: I can help you make that choice intelligently by giving you the information you nee to make an informed decision.)

The advantages of new construction include: 

• It's new and totally yours--no one else has ever lived there.
• If you buy early enough you can choose the finishes--floors, counters, doorknobs--all will have your personal flair.
• Right now buyers are anxious to sell and are giving generous upgrade packages and discounts on prices.
• The homes are up to date on codes and energy efficiency. The foundations are stronger, the windows are double-paned, the plumbing is copper, the wiring is grounded and can hold today's electronics, and there is insulation, all of which may or may not be true of an older re-sale home.
• Most new construction includes air-conditioning which not only is unusual in older homes, but prohibited in many town home and condo complexes.
• The HOA fees tend to be a little lower than older complexes, many of which may have some deferred maintenance issues.

And the drawbacks?

• Location: Many (although not all) new developments are in slightly less desirable sites. Generally, they aren't in the middle of established residential neighborhoods, but rather in old industrial/commercial areas. (New construction in Evergreen is an exception to this rule). 
• Homes with such good energy efficiency can sometimes lead to mold growth because they aren't well ventilated.
• Many new homes, especially close to urban or transportation centers are town homes or condos, not single family homes. There are a few single family home developments, but the lots are tiny and the homes are very close together. Condos and town homes are packed tightly into small spaces, and while they are landscaped, there are very few trees. There is little patio and yard space.
• The time between purchase and move in can be anywhere from 2 months to 2 years, so you have to be flexible.

The best way to make an informed decision about whether a new home is right for you is to make sure you've clued yourself in on every option before jumping into anything.  Most new developments give a realtor a referral fee for bringing in a buyer, but if the buyer comes to the development first, then no referral will be paid. If you are working with a realtor, you should go to the developments with your realtor at least on the first visit. That way your realtor (hopefully me!) will be able to be objective about what is in your best interest. If you are going to buy a home, it will not matter to the realtor which home you buy, and the advice can be more objective. If your realtor makes money if you buy one home but not another, it will be harder for your realtor to be objective. Your realtor can be very helpful in analyzing future potential for appreciation or depreciation on the community, and the particular lot site you choose. We can also help negotiate price and upgrades.

I am very experienced in new home sales so if you have any questions, feel free to contact me. 

Happy house hunting!!!