New Home Buying Process

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New Home Buying Process:

Buyer's "Wants & Needs" Analysis

We carefully explore your housing desires and requirements to identify exactly what type of home will satisfy you. Cal Coast Realty answers questions you may have about local communities, neighborhood amenities, schools, traffic considerations, the builder's reputation, and market appreciation prospects. You must "pre-qualify" with the builder's lender but you may still acquire your mortgage through Americor Financial. Americor Financial competes to earn your business and can deliver financing that is more competitive than any new home builder (builders' mortgage companies have huge built-in profit margins).

Market Research

Cal Coast Realty comprehensively reviews the real estate market to filter and match your wants and needs to new home communities. Cal Coast Realty performs independent research and will inform you about the upcoming communities expected to open in the future. Once you know where you may wish to live, we take you to the builder's model homes and register you with the sales staff on site. We view the models and perform a Comparative Market Analysis (CMA) of the homes you like best.

New Home Buying Considerations

You should be aware that there is more cost to buying a new home than the just the purchase price. You will need to spend an extra 10% to 20% of the purchase price to finish the home commensurate with the neighborhood. With the exception of buying an actual model home, you will need some contractor(s) to finish and personalize your new home. Depending on the builder, the neighborhood and your wishes, you will need to add some or all of the following items and/or upgrades:

Landscaping/Hardscape

Yard drain system, soil amendments

Automatic sprinklers

Lighting system

Patios, walkways, retaining walls, entryway monuments

Trees, shrubs, vines, groundcover, flowers

Swimming pool, spa, water feature, cabana

Interior Upgrades

Tile, carpet

Granite, Corian, Corinthian, Silestone or tile counters and backsplashes

Cabinets, crown moulding, stool & apron, baseboards

"Designer" paint, wallpaper

Window coverings, window treatments, window tinting

Lighting fixtures, ceiling fans, surround sound systems

Appliances, fixtures

Functional upgrades

Air conditioning, water filter, water softener, solar heating

Central vacuum system, intercom system

Garage cabinets, workbench, floor sealing

The options and upgrades offered to new homebuyers are a source of very high profit margins for new home builders. Most all options are available by independent contractors or outside vendors for much less than the builder's design center. Cal Coast Realty can make referrals to qualified contractors who follow my "value-added" approach to business. You could also purchase most if not all of the items above through the builder's design center, but be prepared to pay about 100% more than my after-market referred contractors would charge for the same quality work or product.

Often design center upgrades require up-front non-refundable cash deposits. These payments "tie" you to the transaction until closing. If your plans change then you may feel "stuck" by the builder going through with the purchase. These upgrades can however, be included in the mortgage financing, which is an important consideration for some buyers.

Complete Purchase Contract

Cal Coast Realty will assist you with the purchase contract completion and review the extensive builder disclosures. Unlike the purchase agreement forms we use from the California Association of REALTORS^®, the contracts used by new home builders are without exception, extremely one-sided in favor of the builder/seller. Most attorneys can not bring themselves to even purchase a new home because of the extremely slanted contracts the builders all use. As surprising as it may seem, there are virtually no consumer protection provisions in new home purchase contracts. However, California has forced the builders to shoulder some responsibility. There is a state law mandating a ten year new home warranty against construction defects. You may have to prove the defects in a court of law but at least there is some protection for the consumer.

Construction Quality Assurance

I recommend that you utilize the services of a professional home inspector, even on your new home purchase (with some builders more so than others; ask which ones). Cal Coast Realty has working experience in various phases of the construction industry, so we have an eye for construction details. We have bought new homes ourselves previously and know what the experience is like and what standards are generally acceptable.

Your Rebate

Some builders do not permit the payment of a rebate to new home buyers represented by a buyer's broker. Cal Coast Realty complies with all builder guidelines in this regard. However, when you utilize Americor Financial in the financing of your new home, you can receive an equivalent rebate through the loan process. Call Cal Coast Realty and ask for details at (760) 931 0395.

Information provided by this website should be considered reliable but is not guaranteed. Cal Coast Realty does not make any warranty or representation concerning properties presented or described herein, including their size, amenities, price or current status. Not all of the information which has been provided by builders, sellers or other sources and has been personally verified by broker. Interested parties or persons who are not exclusive clients of Cal Coast Realty are responsible to independently verify the accuracy of the information. Copyright © 2000-2008 by Cal Coast Realty, all rights reserved.