The house seems like everything you ever wanted. Judging by the layout of the model home, it's literally made for you. Just right floor plan, a lovely exterior, a yard that has tons of potential and the price (with all the builder incentives being offered right now) seems so reasonable. On top of all that, from what you can see it will have a view of a lovely wooded area and houses even larger than this one surrounding it, helping the future value of the one you’re considering.
So you begin questioning the on-site builder sales agent about the neighborhood and it seems he or she really can’t confirm much to you except reiterating the builder’s price and terms. Will there be homes built nearby that can block your view? What if the parcels that are planned around the new home neighborhood you selected are smaller, placing the other new homes closer together? What if the open space area get compromised or re-zoned?
Builder salespeople protect their builders from litigation by taking the position that they can’t promise buyers anything – and it is stated all over their purchase agreement paperwork. All they can say is what their own builder has in mind, subsequently referring you to the local city or county planning offices to find out for yourself. Why? Making too many assurances is very dangerous ground for new home sales agents. They walk a tightrope, so to speak, trying to be a resource of information while relegating their answers to generalities.
A builder salesperson’s duties can be narrowed down even further. Even disclosing to buyers exactly which floor plans may be next to, across from, or within view of your new home are not required to be revealed. In fact, the builder may not have even determined this ahead of time, instead preferring to wait out the market to see what might sell best before they pull permits to build around you.
If the homebuilder finds it necessary to become more fiscally conservative, it may just plot only its smallest floor plans, creating a long procession of more modest houses. Or, it may sell its remaining home sites to another builder who can build whatever the city approves – a crap shoot for those already there in terms of how the neighborhood will turn out, especially in this challenging real estate market, where so many builders have closed their doors.
In the end, it all boils down to information you may need to get on your own. It's a good idea to take the builder up on visiting the city planner’s office to see if you can pick their brains for more data about the area. It could very well be that the city requires a certain square footage minimum and/or maximum, will have established a certain density (number of homes per acre) and even the type of construction they will permit (stucco, tile roofs, etc.), giving you pause for rellief.
If you are counting on your children going to the brand new elementary school nearby, call the school district to make sure the school is not already impacted with children from nearby neighborhoods. Planning offices may also give you an idea for what infrastructure is being slated for the surrounding area (transit lines, commercial zones, or industrial parks).
In today’s market, why not spend some time on the Internet, Googling the homebuilder to see if there is any bad press or word of impending insolvency of the part of the builder? Your own due diligence as a potential homebuyer is a way to arm yourself with enough information to make a final decision on buying in the neighborhood you are considering, putting the ball in your court, where you ultimately would want it to be when buying making an investment this large.
Dena Kouremetis is a veteran freelance real estate consumer journalist and California real estate broker. She may be reached by email at REritr@aol.com.
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