Buying In New Development

[honor20]

I received an inheritance and can finally buy a home. I am looking into a brand new development that is selling in phases. These are lovely townhomes in California that, of course, have HOA fees. (I know, I know but I can't afford a single family home). Plus I don't want to deal with the maintenance issues of an older home and I want something smaller and cozier for my child and me.

I am on the priority list and hopefully will buy in a later phase which will be built around June 2006. I wanted to buy in a later phase so that all the kinks in construction could be worked out by the time they build my home.
Plus it gives me more time to perfect my already good credit rating and save more $.

These kinds of developments have options for upgrades. Is it smart to upgrade as much as you can? Should I get granite countertops and travertine floors? Or is it better to have an independent contracter put those things in? Is it cheaper to have the builder do it? Any other comments on new construction would be welcome. I want to do as much research as possible so that my inheritance is used properly and wisely.

Thank you for reading and replying.

[Rich]

Honestly there is no way to know if your builder upgrades would be cheaper than an independent would be. You can put the question to your builder to see what the cost they are going to charge is - and then send out for bids to compare. One thing to remember - your builder will probably want to put some material in there for final CO - so if an independent comes in later they will need to remove the existing - which is disruptive and more costly.

[giddonah]

Or can you ask for an unfinished kitchen? What's wrong with saying, "hey, that's fine right there, I'll take it". People do it with taxi rides all the time. :wink: :D

[Rich]

Well like I said - the builder's goal is to get the building department to sign off and get on to the next one. In order for them to do that - the home needs to be finished. You might find one that's willing to do that - way to go if you do.

[plunkinberry]

Giddonah, when I bought my house, they wouldn't even let me do things myself... I was getting a good deal, so I didn't push the issue, but they probably won't leave an unfinished kitchen or bath especially. You might be able to talk a contractor into not installing trim or not painting a particular section, but not something like a kitchen.

Honor, I know the market in CA is crazy, but June '06? That's 18 months away... A benefit of having the builder do it is that their guys are already there, they get buld discounts, and you can roll the cost into your mortgage. With an independant contractor, you're gonna have to pony up cash money. Otherwise, I'd say it'd be close one way or another.

My builder (I bought a spec house that was basically done) wanted $3500 for central air - and the units were junk. I had a top of the line Lennox unit installed and a whole house humidifier for less money. They didn't offer anything else...

[Richard A Hetzel]

Think VERY carefully about buying where there is a homeowners association that has absolute power over your investment and many aspects of your life. I speak from sad experience. The worst people possible are the ones who end up running it, because the best people are busy doing what they do best, and have no time or patience for those fools. A word to the wise.

[rabadger]

Amen to that!