Home Buying 101: Building a new home in Florida
Picture it: USA, 2020. Most of us are sent home to work, virtually socialize, and stress eat. We attempt to live our lives as normal as possible without losing our minds.
At this point, homes started to feel like a prison. People hated their environment and were seeking an escape. With all this new flexibility in their work lives, they were given an excuse to cut and run.
For many, this meant moving to the sunshiney state of Florida.
Orlando Sentinel stated that Florida saw significant population growth in 2020, just barely trailing behind Texas. Droves of people made the move to escape the cold or get a little closer to Disney World. Growth in the rest of the country slowed down considerably.
Building a new home is one of the best options if you’re thinking of moving to Florida right now. It reduces the craze of bidding on a resale or competing with cash buyers. Plus, some builders only require a small deposit and you have the freedom of choosing your home. (Take it from me! I bought my newly built home in May 2020.)
Why enter a bidding war on a resale when you can build your own home at a similar price?
There are some caveats to building your own home. The process isn’t for everyone and you will need to do plenty of research.
I’m a Sales Consultant for a major builder in Florida and there are a few things you need to know before choosing your builder.
Area
You have to start your search somewhere! Pinpointing the area will help you the most when choosing a builder. Do you want to live near Disney World? The west coast near a big city like Tampa? The east coast near the beaches and the Kennedy Space Center? Think of the lifestyle you want to acquire when making your move and that should help.
Try to stay open-minded when it comes to the area. The advantage of living in Orlando is that you will be near theme parks and recreation. The disadvantage is that prices will be higher and you’ll run into more traffic. Meanwhile, building a home near the coast will be more affordable…but the commute to Orlando will be longer. I wouldn’t rule out any areas though! Take a tour of the location and see if you can visualize yourself living there.
Builder
You’ve decided on where you want to live. Now it’s time to research builders that will fit your needs! You should choose a company that is reliable with solid reviews. You can take to Google and Facebook for online reviews. However, take these reviews with a grain of salt! We all know that more people are motivated to write bad reviews than good reviews.
It’s also nice to work with a company that has been around for several years. This means they have the experience to withstand economic crises. Remember when the housing bubble popped in 2008? Some builders were able to push through the housing market fallout while others had to shut their doors. This is just one example of how a company may handle difficult situations.
You’ll also want a company that is motivated to close your house as quickly as possible. To ensure this, you can ask the sales associates about the building and closing process.
HOA Community vs. Scattered Lots
Next, you’ll want to consider whether you want to live in an HOA community or an individual lot. Again, both options have pros and cons. Some builders allow you to build on a homesite you own or a homesite the company owns. Building on a scattered lot (as opposed to an HOA community) will allow you some freedom when it comes to your house. Once you close on the home, you have more flexibility with your property. Some people enjoy this flexibility while others like the idea of a neighborhood with rules or guidelines.
Living in an HOA community means you will pay an annual or monthly fee. This fee is applied to the services and features in your neighborhood. These services might include upkeep of the common areas, community pool maintenance, or gym access. The point of an HOA is to keep the neighborhood in shape or prevent inconveniences. They might ask you to keep your lawn mowed or prevent you from parking too many cars on the street.
Floorplans and Layouts
This is the fun part! It’s time to plan your future home. Most builder companies will post the available home layouts on their website. Starting on the website will give you an idea of the style, size, and prices of the homes they can build. To get started, think about how many bedrooms and bathrooms are necessary for you. Do you need two bedrooms for the kids and an office? Three bathrooms because Grandmas is moving with you? An open floor plan so you can cook dinner and hang out with your family in the same room?
Think about your ideal living situation and what will make you happy. That said, you should also stay a little flexible. You may pass up the perfect floorplan because you were stuck on one feature. It’s tough to visualize yourself living in an imaginary home so try your best to be adaptable!
Homesites
A “homesite” is a fancy name for the lot where the home will be placed. Each community will have specified lot sizes and homes that will fit on the lots. Likewise, scattered lots will have varying sizes that can fit certain floorplans. Choosing your homesite can be important if you’re searching for a specific property size and location. You may want to want a waterfront view, placed on a corner lot, or be backed against a fence.
Generally, bigger lots and lots with specific features will have a higher price. Some community lots don’t cost anything so you can avoid the premium when you’re on a tight budget.
Included Options and Extra Upgrades
All builders will offer different customizations that can be applied to your home. Some of the options are included in the price while others come at an extra cost. When visiting a model home, as the Sales Associate what’s included in the home and what can be added. For example, some builders may include granite countertops while others require you to add the option to your price.
Builders may offer different included options to stay competitive with each other as well. These incentives will help you make your decision when choosing a builder. Also, take note if the company has a preferred lender! The lender may offer to cover some or all closing costs when working with certain builders.
Build Times
Many Florida homebuilders are taking several months to build a home. This timeframe is dependent on multiple factors. Your chosen builder may have already applied for building permits, which could speed things up considerably. The downside is that homes in permitting have already been planned out. Meaning, you don’t have a lot of room to customize your future home. You will most likely have to wait longer if you’d like to choose your floorplan, colors, and upgrades.
Waiting longer for your home to complete isn’t a bad thing. It can be very beneficial if you’re patient. Those who built their homes in 2020 are seeing the worth of their homes increase substantially in 2021 and 2022. Many Buyers are closing their homes with 50 or 60K in equity. Your home worth will increase and you will also value having a brand new home without dealing with the hassle of purchasing a resale. It will come with your personal touches, the perfect floorplan, and your own style. That, in itself, is worth waiting for!
P.S. Getting pre-approved with a lender ahead of time will set you apart from other buyers. This is true if you’re purchasing a resale or a newly built home. Most sellers and companies won’t accept a contract or bid until you’ve applied with a financing company. Start the process now and it will make the purchase process way easier!
Looking to build a new home on the beautiful space coast in Florida? I’m a New Homes Sales Consultant with Maronda Homes and would be happy to assist you!
