HOMES & COMMUNITIES

You may also encounter additional costs like a monthly fee for membership to the homeowners association. The HOA typically pays for the community amenities, landscaping, and implementation of regulations that keep the houses well-maintained. While there might not be a homeowner’s fee initially, the HOA may institute it later as the community grows. Again, make sure you get all the information upfront.

Also, don’t forget that the brand-new home you receive may come with a higher property tax due to its pristine condition. Keep this in mind because your property tax will rise over time, especially as more houses are built.

Research where the best lot is

Most developers allow homebuyers to pick finishes. Some will also let you choose where the house is physically located within a development or a given area. “Preconstruction homes are usually a good option, because if you’re buying early, you get first to pick,” says Cristina Ortega, owner of Mrs. Property Solutions in Los Angeles.

The key is to get into a development early and take time to drive around the future neighborhood. Check out the topography in each lot. For instance, a flat lot may have drainage problems, while a home on a slope may end up with a steep driveway. So be sure to talk with the developer about the property itself and not simply the home design.

■ Be sure to conduct a home inspection

While most new construction includes a final walk-through, the builder might not offer a final home inspection. And as great as a brandnew home sounds, living in the structure is untested until you move in. And homebuyers can encounter problems once the home is up and running. Builders are often working quickly with many projects handed off to subcontractors, and mistakes happen. So it’s safer if you don’t assume the house is flawless and built to code.

“Have a licensed home inspector perform an inspection prior to closing and once again before the warranty expires,” advises Luis Dominguez, a real estate professional with Douglas Elliman Real Estate in Miami.

■ Consider new home warranties

New homes usually come with a builder warranty, which should cover all of the home’s materials and quality, Dominguez says. This includes things like the concrete foundation and floors, carpentry, insulation, roofing, plumbing, and electrical work.

According to the Federal Trade Commission, the length of coverage varies between one year for workmanship and materials and up to 10 years for major structural defects.

But while the warranty provides peace of mind that the builder will cover the cost of any issues that arise after you’ve purchased the home, one warranty may not offer enough coverage.

Remember that homebuyers can purchase an additional home warranty for an extra cost to cover the replacement or repair of appliances or air-conditioning system. Basic coverage can start at around $300 and go up to $600 for a more comprehensive plan.

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