Top 5 Tips | New Construction | Temecula Murrieta Menifee

Today I’m going to give you my top 5 tips for buying new construction in the Murrieta/Temecula Valley and we are starting right now.

Hi, I’m Jessica Genung, a Realtor here in the Murrieta Temecula Valley.  If you are considering moving to the Murrieta area, check out my Relocation Guide which is available for immediate download.  There is a link down below in the description where you can get that.  If you are viewing this video on a mobile device you just need to tap the video title and the description box will open up. And thanks so much for stopping by my channel.  Lets get right to our topic. 5 Tips when buying new construction.

NUMBER 1 Know what “type” of builder you are dealing with.  Builders typically fall into 2 camps.  The first camp is where lots of features are already included in the home, what you see is what you get for the most part in the model, and there are not a lot of options to customize when you go to the design center.  Examples of this camp of builders are going to be Lennar and DR Horton.  

If you have seen my other videos, you have heard that I like to work with Lennar and one of the reasons is because they have so many upgraded features that are included in the base price of the home.  This makes it a pretty easy process for my clients.  The only options to upgrade at the design center is pretty much just flooring and your backsplash. 

In the 2nd camp is going to be your builders that allow you lots and lots of customization options.  Examples of this type of builder are going to be Pulte, Richmond American and Pardee just to name a few.  Their models are typically HIGHLY upgraded and lots of what you see in the model is not going to be included in the base price.  The obvious benefit to this camp of builders is you can customize and upgrade to your heart’s desire.  

NUMBER 2 This leads me to my second tip.  Begin with your final budget in mind.  You want to make sure that you factor in any upgrades that you already know you want into your budget.  Especially in that 2nd camp of homes, it is VERY easy to add on an additional $50,000 to your home price by adding upgrades.  

Maybe you decide it makes more sense to purchase the solar panels rather than lease them.  Maybe there are some good tax credits that make purchasing make more sense.  By the way, as of this year, 2020, the California legislature made solar panels on new construction mandatory.  Yes, you MUST have solar panels on new construction.  

Solar panels are running about $15,000-$20,000 depending on the size of the home.  Then you want to upgrade the flooring to the popular luxury vinyl plank throughout which can add about $10,000 per floor.  Maybe you want a patio cover because we have really hot summers here or you want the taller kitchen cabinets or the upgraded sliding glass door that opens from the center.  You can see how it’s not hard to add on a lot to the final purchase price.  

This is where your Realtor can really help you with these types of decisions and they can recommend communities that fit within your budget.  Pro tip: always take your knowledgeable and experienced agent with you the very first time you visit a new construction community.  If you visit a new construction community for the first time without your agent, the builder will not allow you to have independent representation later.  Instead, your interests will be represented only by the sales agent who is the employee of the builder. 

Also, it does not cost you anything to have independent representation.  The buyers agent commission is almost always paid by the seller, which in this case is the builder.  If you are considering new construction homes in our area, give us a call we love to hear from you.  Even if you are a year out from purchasing your home, it’s never too early to contact us to help you make a plan.  

NUMBER 3 If you want to purchase a new home on one of the best lots, plan to wait longer.  You are most likely going to have to buy it very early in the building process, most likely when the lot is just a dirt. Sometimes there is a cancellation and you get lucky.  If you pick out a premium lot and it’s in the dirt phase, plan to wait about 6 months or longer to have your home built.  If you need a quicker move-in home you can often still get a decent lot, but just know it likely won’t be one of the very premium lots.  New construction homes in the area are still selling very well even though we are currently dealing with the Covid-19 pandemic.  

NUMBER 4 Go see an already completed home when possible that is an exact match of the floor plan and finishes, if possible.  It’s easy to fall in love with the look of the sales center models and the interior can be designed very similar to the model.  But regarding the outside or “elevation” as they call it, these are typically predetermined by the builder which lot will have which floorplan, elevation and color scheme.  This is so the neighborhood will have nice aesthetics with variety.  You can’t have 2 of the same homes side by side because that just wouldn’t look good.  

So once you’ve decided on a floor plan, you will look at the available lots and take note of the elevation that is planned for that lot.  The “elevation” is the exterior style. Here is an example of the different elevations you might have to choose from. A particular builder often has a spanish style, Italian style, craftsman style and farmhouse style.  The farmhouse style is really popular right now btw.  

After you find out which elevation is planned for the lot, ask about the color scheme.  Normally the salesperson will have a board in the sales center that looks like this with the various color schemes and samples of the roofing tiles etc.  With all of this information in mind, I recommend that you go look at a finished exact match of your home.  

The sales rep should be able to look up in the system another home in the community that is an exact match, elevation and color scheme match to the home you are considering.  Go ahead and drive by that home so you can physically see it in person.  If there are no matches, and this is common if the community is brand new, in which case you will have to use your imagination.  But whenever you can, try to see a finished result (with a Realtor).    

NUMBER 5 Ask if the builder currently has any type of “hometown heros” program.  Many builders offer additional closing cost or upgrades credits for specified professions which are usually past and present military personnel, law enforcement officers and firefighters.  Some of the programs also extend to a wider variety of professions such as teachers, medical doctors and nurses.  

I’ve been seeing these types of programs offer around an additional $2,000 in credit.  New construction builders almost always offer you help with paying your closing costs in the form of a credit.  The catch is you have to use the builder’s approved lender.  Other outside lenders typically have a hard time competing with this offer because this credit is being offered by the builder, not by the lender.  

My preferred lender has told me it’s difficult to compete with the credits the builders are offering buyers to use the builder’s lender because they would also have to offer credits and not be able to make much money on the loan for it to make business sense for them.  Most of my new construction buyer clients do end up using the builder’s lender, but it’s a great idea to get another quote just to be sure you are getting the best deal.  

If you do find a better deal, I recommend to then ask the builder’s lender to match the offer, which they may.  The best case scenario is you get the closing cost credit AND they match the best offer.  The typical closing cost credit I’m seeing the builders offer currently is between $6,000 and $12,000.  AND if you get the hero credit on top of that, this is really going to lower the amount of cash you will need for closing.  

That wraps up my tips for today. For more on new construction check out this video (point left hold right). Bye!