New Home Finder

Can't find the right home? Consider new construction By Erik J. Martin CTW FEATURES Here's a surprising stat: New construc- tion consisted of over one-third (34.1%) of single-family homes for sale in America in December, a rise from 25.4% one year earlier and the highest share recorded, according to a recent Redfin report. That's a big deal, as new construction homes have been in short supply for many years, which has con- tributed to increased prices for older resi- dences for sale. What's more, con- sider that in December 2021, there was a six- month supply of new construction homes, with inventory up 34.8% year-over-year versus 14.2% for the inventory of existing homes. So what's going on? Why are more new homes being built? And why should pro- spective buyers look closer at purchasing a fresh home built from the ground up? "Lack of inventory is primarily behind the increase in new construction. There have been 10 years of under-building in the U.S. since the Great Recession, and now everyone is trying to play catch-up," says Tamara Celeste, bro- ker/owner of Sweet Life Realty Group in Port St. Lucie, Florida. "Also, in many areas, because of the lack of inventory and the rising price of ex- isting homes, you can build a brand-new home for an amount close to what an exist- ing home might cost you today because you aren't competing with other buyers who may drive the initial list price higher on an ex- isting home." David Munaretto, founder/CEO of Chi- cago-headquartered LotNova, says in- creased builder confi- dence is also a major factor, resulting in greater levels of inven- tory. "In addition, the de- sire for more room and more flexible space as people increasingly work from home is pushing this trend," he adds. New construction homes offer many ad- vantages over resale properties. "New construction comes with low-main- tenance costs, includ- ing modern plumbing, appliances, and HVAC. Also, similar to a car, they typically come with a warranty, which means customers can buy with confidence knowing the builder will cover the cost of any issues during the warranty period — such as a leaky roof or broken water heater," notes Andres Mejia, senior home adviser at digital homeownership company Better in New York City. Also, with a custom new home yet to be built, you get to choose the design of your home and the finishes, resulting in a person- alized residence that matches your needs and preferences. If you opt for a newly built home, how- ever, figure in the wait time involved if you are building from the ground up. You may need special financing, including a separate lot loan, construction loan, and mortgage loan, or a construction- to-permanent loan that covers the land, construction, and fin- ished home in one loan package. "If you need to move in within a month or two and the home is not yet ready, you may have to rent temporar- ily or find interim shel- ter," Celeste explains. If you are prepared to purchase a move- in-ready spec home, "the negatives include cookie-cutter home plans and a lack of op- tions as well as a lack of that personal touch," Munaretto says. New construction usually costs more than existing homes, as well. "According to Zillow, 75% of homebuyers polled in 2020 pre- ferred a new construc- tion home, but only 1 in 6 of those surveyed purchased one. That translates to 4 million homebuyers who opted out of new construction during their search for a new home, usually because offerings by builders weren't right for their needs," Muna- retto continues. Anyone looking to customize a home to their specifications should consider new construction, Mejia recommends. "If you are also worried about home repairs and want to be in a modern com- munity with the lat- est features, new construction can be a great option for you," says Eric Kucharik, a Realtor with Realty One Group Supreme in Philadelphia. But consider mat- ters carefully before committing to a new construction home. "Do you get that sinking feeling when interviewing contrac- tors? Are you worried that they are going to take advantage of you and cut corners? You may get that same feeling when inter- viewing builders. A builder is a contractor who is responsible for everything in your new house, so you need to make sure you are doing business with a trustworthy builder who has a great repu- tation — otherwise, you might get stuck with a bad or incom- plete house," suggests Kucharik. tage oak trees, which were painstakingly pre- served by the builder. "The neighborhood was designed around the magnificent oaks on the property," says Mark Robson, presi- dent of Robson Homes. "They create this truly wonderful setting, something that you experience the mo- ment you drive into the neighborhood." In this secluded setting, Oak Tree Circle is still close and convenient to everything, including transportation, em- ployment, shopping, and recreation. It's just a short drive to downtown Campbell and downtown Los Gatos, and a short walk to the Los Gatos Creek Trail entrance on East Mozart Av- enue. The neighbor- hood is served by excellent Cambrian and Campbell schools. Oak Tree Circle's 25 new homes showcase an attractive blend of Cottage, Craftsman and Farmhouse architec- tural styles. Between the five floor plans and the numerous exterior styles, it truly feels like a neighborhood of cus- tom homes. As with all Robson homes, the caliber and quality of the design, detail and finishes in the homes are top notch. Standout fea- tures include brick porches and coordi- nating driveway pav- ers, custom built-in cabinetry, Waterworks and Kohler plumbing fixtures, Wolf appli- ances, and French oak hardwood floors. The homes are all electric with owned and in- cluded 4.20 to 5.95kW Low Profile Solar PVC systems for built-in en- ergy and cost savings. The model home and sales office at Oak Tree Circle will open soon. Floor plans, fea- tures, a site map and more information are available on the build- er's website at www. robsonhomes.com/ neighborhood/oak- tree-circle. Join the In- terest List on that page to receive information on the sales process. Email Roya Gardere at rgardere@vestareco. com or Christina Cruz at ccruz@vestareco. com with questions. Content provided by Robson Homes Robson Homes from page 3 DebtPayoffRefiLoans www.excellentmortgageloan.com Reverse Mortgages to $3M Product Rate Points Fees % Down APR 30 Yr Fixed APR 15 Yr Conf. 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